Second Regular Session 112th General Assembly (2002)


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.
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HOUSE ENROLLED ACT No. 1196



     AN ACT to amend the Indiana Code concerning taxation and to make an appropriation.

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

    SECTION 1. IC 4-21.5-5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The following persons have standing to obtain judicial review of an agency action:
        (1) A person to whom the agency action is specifically directed.
        (2) A person who was a party to the agency proceedings that led to the agency action.
        (3) A person eligible for standing under a law applicable to the agency action.
        (4) A person otherwise aggrieved or adversely affected by the agency action.
         (5) The department of local government finance with respect to judicial review of a final determination of the Indiana board of tax review in an action in which the department has intervened under IC 6-1.1-15-5(b).
    (b) A person has standing under subsection (a)(4) only if:
        (1) the agency action has prejudiced or is likely to prejudice the interests of the person;
        (2) the person:
            (A) was eligible for an initial notice of an order or proceeding under this article, was not notified of the order or proceeding in substantial compliance with this article, and did not have

actual notice of the order or proceeding before the last date in the proceeding that the person could object or otherwise intervene to contest the agency action; or
            (B) was qualified to intervene to contest an agency action under IC 4-21.5-3-21(a), petitioned for intervention in the proceeding, and was denied party status;
        (3) the person's asserted interests are among those that the agency was required to consider when it engaged in the agency action challenged; and
        (4) a judgment in favor of the person would substantially eliminate or redress the prejudice to the person caused or likely to be caused by the agency action.
    SECTION 2. IC 4-33-12-6, AS AMENDED BY P.L.215-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: 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 subsections (c) and (d) and IC 6-3.1-20-7, 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); located in a county having a population of more than one hundred ten thousand (110,000) but less than one hundred fifteen thousand (115,000); 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 and addiction. 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 and addiction 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) With respect to tax revenue collected from a riverboat that operates from a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000), 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 the city in which the riverboat is docked.
        (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.
        (3) Nine cents ($0.09) 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) One cents ($0.01) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the northwest Indiana law enforcement training center.
        (5) 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.
        (6) 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 and addiction. 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.
        (7) 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.

    (d) (e) Money paid to a unit of local government under subsection (b)(1) through (b)(2), or subsection (c)(1), or (d)(1) through (d)(2):
        (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 maximum 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;
        (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; and
        (4) is considered miscellaneous revenue.
    (e) (f) Money paid by the treasurer of state under subsection (b)(3) or (d)(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) (g) Money received by the division of mental health and addiction under subsections (b)(5), and (c)(5), and (d)(6):


        (1) is annually appropriated to the division of mental health and addiction;
        (2) shall be distributed to the division of mental health and addiction at times during each state fiscal year determined by the budget agency; and
        (3) shall be used by the division of mental health and addiction 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.
    SECTION 3. IC 4-33-13-5, AS AMENDED BY P.L.273-1999, SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 5. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue deposited in the state gaming fund under this chapter to the following:
        (1) Twenty-five percent (25%) of the tax revenue remitted by each licensed owner shall be paid:
            (A) to the city that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of:
                 (i) a city described in IC 4-33-12-6(b)(1)(A); or
                (ii) a city located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000);

            (B) in equal shares to the counties described in IC 4-33-1-1(3), in the case of a riverboat whose home dock is on Patoka Lake; or
            (C) to the county that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of a riverboat whose home dock is not in a city described in clause (A) or a county described in clause (B); and
        (2) Seventy-five percent (75%) of the tax revenue remitted by each licensed owner shall be paid to the build Indiana fund lottery and gaming surplus account.
    SECTION 4. IC 6-1.1-3-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 14. The township assessor shall:
         (1) examine and verify; or
        (2) allow a contractor under IC 6-1.1-36-12 to examine and verify;

the accuracy of each personal property return filed with him the township assessor by a taxpayer. If appropriate, the assessor or contractor under IC 6-1.1-36-12 shall compare a return with the books of the taxpayer and with personal property owned, held, possessed, controlled, or occupied by the taxpayer.
    SECTION 5. IC 6-1.1-4-13, AS AMENDED BY SEA 357-2002, SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use.
    (b) In making a general reassessment of land used for agriculture, the county assessor shall appoint a committee of five (5) competent persons to help determine land values. At least two (2) of the committee members must be agricultural land owners of the county. The committee shall be known as the county agricultural land advisory committee. The indicators of value determined by this committee shall be submitted to the tax commissioners' agricultural advisory council, as established under IC 6-1.1-38-1, as guides for ascertaining the value of agricultural land.
    (c) (b) The department of local government finance shall give written notice to each county assessor of:
        (1) the availability of the United States Department of Agriculture's soil survey data; and
        (2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land.
    (d) (c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
    (e) (d) This section does not apply to land purchased for industrial, commercial, or residential uses.
    SECTION 6. IC 6-1.1-4-25, AS AMENDED BY P.L.198-2001, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 25. (a) Each township assessor shall keep the assessor's reassessment data and records current by securing the necessary field data and by making changes in the assessed value of real property as changes occur in the use of the real property. The township assessor's records shall at all times show the assessed value

of real property in accordance with the provisions of this chapter. The township assessor shall ensure that the county assessor has full access to the assessment records maintained by the township assessor.
    (b) The township assessor in a county having a consolidated city, or the county assessor in every other county, shall:
        (1) maintain an electronic data file of:
             (A) the parcel characteristics and parcel assessments of all parcels; and
            (B) the personal property return characteristics and assessments by return;
        
for each township in the county as of each assessment date; that is
        (2) maintain the file in the form required by:
            (A) the legislative services agency; and
            (B) the department of local government finance; and
        (2) (3) transmit the data in the file with respect to the assessment date of each year before October 1 of the year to:
            (A) the legislative services agency; and
            (B) the department of local government finance.
    SECTION 7. IC 6-1.1-4-27.5, AS AMENDED BY P.L.198-2001, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 27.5. (a) The auditor of each county shall establish a property reassessment fund. The county treasurer shall deposit all collections resulting from the property taxes that the county is required to levy under this section in the county's property reassessment fund.
    (b) With respect to the general reassessment of real property which is to commence on July 1, 2004, the county council of each county shall, for property taxes due in the year in which the general reassessment is to commence and the two (2) years immediately preceding that year, levy against all the taxable property of the county an amount equal to one-third (1/3) of the estimated cost of the general reassessment.
    (c) With respect to a general reassessment of real property that is to commence on July 1, 2008, and each fourth year thereafter, the county council of each county shall, for property taxes due in the year that the general reassessment is to commence and the three (3) years preceding that year, levy against all the taxable property in the county an amount equal to one-fourth (1/4) of the estimated cost of the general reassessment.
    (d) The department of local government finance shall give to each county council notice, before January 1 in a year of the tax levies required by this section for that year.


    (e) The department of local government finance may raise or lower the property taxes levied tax levy under this section for a year if the department determines it is appropriate because the estimated cost of the a general reassessment, including a general reassessment to be completed for the March 1, 2002, assessment date, has changed.
    (f) If the county council determines that there is insufficient money in the county's reassessment fund to pay all expenses (as permitted under section sections 28 28.5 and 32 of this chapter) relating to the general reassessment of real property commencing July 1, 2000, the county may, for the purpose of paying expenses (as permitted under section sections 28 28.5 and 32 of this chapter) relating to the general reassessment commencing July 1, 2000, use money deposited in the fund from taxes levied in the tax levy under this section for 2000 or a later year.
    SECTION 8. IC 6-1.1-4-32, AS AMENDED BY SEA 357-2002, SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 32. (a) As used in this section, "contract" refers to a contract entered into under this section.
    (b) As used in this section, "contractor" refers to a firm that enters into a contract with the department of local government finance under this section.
    (c)
As used in this section, "qualifying county" means a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000).
    (b) (d) Notwithstanding sections 15 and 17 of this chapter, a township assessor in a qualifying county may not appraise property, or have property appraised, for the general reassessment of real property to be completed for the March 1, 2002, assessment date. Completion of that general reassessment in a qualifying county is instead governed by this section. The only duty of:
        (1) a township assessor in a qualifying county; or
        (2) a county assessor of a qualifying county;
with respect to that general reassessment is to provide to the department of local government finance or the department's contractor under subsection (c) (e) any support and information requested by the department or the contractor. This subsection expires June 30, 2004.
    (c) (e) The department of local government finance shall select and contract with a nationally recognized certified public accounting firm with expertise in the appraisal of real property to appraise property for the general reassessment of real property in a qualifying county to be completed for the March 1, 2002, assessment date. The department of local government finance may enter into additional contracts to

provide software or other auxiliary services to be used for the appraisal of property for the general reassessment. The contract applies for the appraisal of land and improvements with respect to all classes of real property in the qualifying county. The contract must include:
        (1) a provision requiring the appraisal firm to:
            (A) prepare a detailed report of:
                (i) expenditures made after July 1, 1999, and before the date of the report from the qualifying county's reassessment fund under section 28 of this chapter (repealed); and
                (ii) the balance in the reassessment fund as of the date of the report; and
            (B) file the report with:
                (i) the legislative body of the qualifying county;
                (ii) the prosecuting attorney of the qualifying county;
                (iii) the department of local government finance; and
                (iv) the attorney general;
        (2) a fixed date by which the appraisal firm must complete all responsibilities under the contract;
        (3) subject to subsection (t), a provision requiring the appraisal firm to use the land values determined for the qualifying county under section 13.6 of this chapter;
        (4) a penalty clause under which the amount to be paid for appraisal services is decreased for failure to complete specified services within the specified time;
        (5) a provision requiring the appraisal firm to make periodic reports to the department of local government finance;
        (6) a provision stipulating the manner in which, and the time intervals at which, the periodic reports referred to in subdivision (5) are to be made;
        (7) a precise stipulation of what service or services are to be provided;
        (8) a provision requiring the appraisal firm to deliver a report of the assessed value of each parcel in a township in the qualifying county to the department of local government finance; and
        (9) any other provisions required by the department of local government finance.
After December 31, 2001, the department of local government finance has all the powers and duties of the state board of tax commissioners provided under a contract entered into under this subsection (as effective before January 1, 2002) before January 1, 2002. The contract is valid to the same extent as if it were entered

into by the department of local government finance. However, a reference in the contract to the state board of tax commissioners shall be treated as a reference to the department of local government finance. The contract shall be treated for all purposes, including the application of IC 33-3-5-2.5, as the contract of the department of local government finance. If the department of local government finance terminates a contract before completion of the work described in this subsection, the department shall contract for completion of the work as promptly as possible under IC 5-22-6. This subsection expires June 30, 2004.
    (d) (f) At least one (1) time each month, the contractors that will make physical visits to the site of real property for reassessment purposes shall publish a notice under IC 5-3-1 describing the areas that are scheduled to be visited within the next thirty (30) days and explaining the purposes of the visit. The notice shall be published in a way to promote understanding of the purposes of the visit in the affected areas. After receiving the report of assessed values from the appraisal firm acting under a contract described in subsection (e), the department of local government finance shall give notice to the taxpayer and the county assessor, by mail, of the amount of the reassessment. The notice of reassessment is subject to appeal by the taxpayer to the Indiana board. The procedures and time limitations that apply to an appeal to the Indiana board of a determination of the department of local government finance apply to an appeal under this subsection. A determination by the Indiana board of an appeal under this subsection is subject to appeal to the tax court under IC 6-1.1-15. This subsection expires on the later of June 30, 2004, or the date a final determination is entered in the last pending appeal filed under this subsection.
    (g) In order to obtain a review by the Indiana board under subsection (f), the taxpayer must file a petition for review with the appropriate county assessor within forty-five (45) days after the notice of the department of local government finance is given to the taxpayer under subsection (f). This subsection expires June 30, 2004.
(e)
(h) The department of local government finance shall mail the notice required by subsection (d) (f) within ninety (90) days after the department receives the report for a parcel from the professional appraisal firm. This subsection expires June 30, 2004.
    (f) (i) The qualifying county shall pay the cost of a any contract under this section which shall be paid without appropriation from the county property reassessment fund. of the qualifying county

established under section 27 of this chapter. A contractor may periodically submit bills for partial payment of work performed under a contract. However, the maximum amount that the qualifying county is obligated to pay for all contracts entered into under subsection (e) for the general reassessment of real property in the qualifying county to be completed for the March 1, 2002, assessment date is twenty-five million five hundred thousand dollars ($25,500,000). Notwithstanding any other law, a contractor is entitled to payment under this subsection for work performed under a contract if the contractor:
        (1) submits, in the form required by IC 5-11-10-1, a fully itemized, certified bill for the costs under the contract of the work performed to the department of local government finance for review;
        (2) obtains from the department of local government finance:
            (A) approval of the form and amount of the bill; and
            (B) a certification that the billed goods and services billed for payment have been received and comply with the contract; and
        (3) files with the county auditor of the qualifying county:
            (A) a duplicate copy of the bill submitted to the department of local government finance;
            (B) the proof of approval provided by the department of local government finance of the form and amount of the bill that was approved; and
            (C) the certification provided by the department of local government finance that indicates that the goods and services billed for payment have been received and comply with the contract.
An approval and a certification under subdivision (2) shall be treated as conclusively resolving the merits of the claim. Upon receipt of the documentation described in subdivision (3), the county auditor shall immediately certify that the bill is true and correct without further audit, publish the claim as required by IC 36-2-6-3, and submit the claim to the county executive of the qualifying county. The county executive shall allow the claim, in full, as approved by the department of local government finance without further examination of the merits of the claim in a regular or special session that is held not less than three (3) days and not more than seven (7) days after completion of the publication requirements under IC 36-2-6-3. Upon allowance of the claim by the county executive, the county auditor shall immediately issue a

warrant or check for the full amount of the claim approved by the department of local government finance. Compliance with this subsection shall be treated as compliance with section 28.5 of this chapter, IC 5-11-6-1, IC 5-11-10, and IC 36-2-6. The determination and payment of a claim in compliance with this subsection is not subject to remonstrance and appeal. IC 36-2-6-4(f) and IC 36-2-6-9 do not apply to a claim under this subsection. IC 5-11-10-1.6(d) applies to a fiscal officer who pays a claim in compliance with this subsection. This subsection expires June 30, 2004.
    (g) (j) Notwithstanding IC 4-13-2, a period of seven (7) days is permitted for each of the following to review and act under IC 4-13-2 on a contract of the department of local government finance under this section:
        (1) The commissioner of the Indiana department of administration.
        (2) The director of the budget agency.
        (3) The attorney general.
        (4) The governor.
    (h) (k) With respect to a general reassessment of real property to be completed under section 4 of this chapter for an assessment date after the March 1, 2002, assessment date, the department of local government finance shall initiate a review with respect to the real property in a qualifying county or a township in a qualifying county, or a portion of the real property in a qualifying county or a township in a qualifying county. The department of local government finance may contract to have the review performed by an appraisal firm. The department of local government finance or its contractor shall determine for the real property under consideration and for the qualifying county or township the variance between:
        (1) the total assessed valuation of the real property within the qualifying county or township; and
        (2) the total assessed valuation that would result if the real property within the qualifying county or township were valued in the manner provided by law.
    (i) (l) If:
        (1) the variance determined under subsection (h) (k) exceeds ten percent (10%); and
        (2) the department of local government finance determines after holding hearings on the matter that a special reassessment should be conducted;
the department shall contract for a special reassessment by an appraisal firm to correct the valuation of the property.


    (j) (m) If the variance determined under subsection (h) (k) is ten percent (10%) or less, the department of local government finance shall determine whether to correct the valuation of the property under:
        (1) sections 9 and 10 of this chapter; or
        (2) IC 6-1.1-14-10 and IC 6-1.1-14-11.
    (k) (n) The department of local government finance shall give notice by mail to a taxpayer of a hearing concerning the department's intent to cause the taxpayer's property to be reassessed under this section. The time fixed for the hearing must be at least ten (10) days after the day the notice is mailed. The department of local government finance may conduct a single hearing under this section with respect to multiple properties. The notice must state:
        (1) the time of the hearing;
        (2) the location of the hearing; and
        (3) that the purpose of the hearing is to hear taxpayers' comments and objections with respect to the department of local government finance's intent to reassess property under this chapter.
    (l) (o) If the department of local government finance determines after the hearing that property should be reassessed under this section, the department shall:
        (1) cause the property to be reassessed under this section;
        (2) mail a certified notice of its final determination to the county auditor of the qualifying county in which the property is located; and
        (3) notify the taxpayer by mail of its final determination.
    (m) (p) A reassessment may be made under this section only if the notice of the final determination under subsection (k) (n) is given to the taxpayer within the same period prescribed in IC 6-1.1-9-3 or IC 6-1.1-9-4.
    (n) (q) If the department of local government finance contracts for a special reassessment of property under this section, the department shall forward the bill for services of the contractor to the county auditor, and the qualifying county shall pay the bill, without appropriation, from the county property reassessment fund. A contractor may periodically submit bills for partial payment of work performed under a contract. Notwithstanding any other law, a contractor is entitled to payment under this subsection for work performed under a contract if the contractor:
        (1) submits, in the form required by IC 5-11-10-1, a fully itemized, certified bill for the costs under the contract of the work performed to the department of local government finance for review;
        (2) obtains from the department of local government finance:
            (A) approval of the form and amount of the bill; and
            (B) a certification that the billed goods and services billed for payment have been received and comply with the contract; and
        (3) files with the county auditor of the qualifying county:
            (A) a duplicate copy of the bill submitted to the department of local government finance;
            (B) the proof of approval provided by the department of local government finance of the form and amount of the bill that was approved; and
            (C) the certification provided by the department of local government finance that indicates that the goods and services billed for payment have been received and comply with the contract.
An approval and a certification under subdivision (2) shall be treated as conclusively resolving the merits of the claim. Upon receipt of the documentation described in subdivision (3), the county auditor shall immediately certify that the bill is true and correct without further audit, publish the claim as required by IC 36-2-6-3, and submit the claim to the county executive of the qualifying county. The county executive shall allow the claim, in full, as approved by the department of local government finance without further examination of the merits of the claim in a regular or special session that is held not less than three (3) days and not more than seven (7) days after completion of the publication requirements under IC 36-2-6-3. Upon allowance of the claim by the county executive, the county auditor shall immediately issue a warrant or check for the full amount of the claim approved by the department of local government finance. Compliance with this subsection shall be treated as compliance with section 28.5 of this chapter, IC 5-11-6-1, IC 5-11-10, and IC 36-2-6. The determination and payment of a claim in compliance with this subsection is not subject to remonstrance and appeal. IC 36-2-6-4(f) and IC 36-2-6-9 do not apply to a claim under this subsection. IC 5-11-10-1.6(d) applies to a fiscal officer who pays a claim in compliance with this subsection.

    (o) (r) A township assessor in a qualifying county or a county assessor of a qualifying county official (as defined in IC 33-3-5-2.5) shall provide information requested in writing by the department of local government finance or the department's contractor under this section not later than seven (7) days after receipt of the written request

from the department or the contractor. If a township assessor or county assessor qualifying official (as defined in IC 33-3-5-2.5) fails to provide the requested information within the time permitted in this subsection, the department of local government finance or the department's contractor may seek an order of the tax court under IC 33-3-5-2.5 for production of the information.
    (p) (s) The provisions of this section are severable in the manner provided in IC 1-1-1-8(b).
     (t) A contract entered into under subsection (e) is subject to this subsection. A contractor shall use the land values determined for the qualifying county under section 13.6 of this chapter to the extent that the contractor finds that the land values reflect the true tax value of land, as determined under the statutes and the rules of the department of local government finance. If the contractor finds that the land values determined for the qualifying county under section 13.6 of this chapter do not reflect the true tax value of land, the contractor shall determine land values for the qualifying county that reflect the true tax value of land, as determined under the statutes and the rules of the department of local government finance. The land values determined by the contractor shall be used to the same extent as if the land values had been determined under section 13.6 of this chapter. The contractor shall notify the county assessor and the township assessors in the qualifying county of the land values as modified under this subsection. This subsection expires June 30, 2004.
    (u) A contractor acting under a contract under subsection (e) may notify the department of local government finance if:
        (1) the county auditor fails to:
            (A) certify the bill;
            (B) publish the claim;
            (C) submit the claim to the county executive; or
            (D) issue a warrant or check;
        as required in subsection (i) at the first opportunity the county auditor is legally permitted to do so;
        (2) the county executive fails to allow the claim as required in subsection (i) at the first opportunity the county executive is legally permitted to do so; or
        (3) a person or entity authorized to act on behalf of the county takes or fails to take an action, including failure to request an appropriation, and that action or failure to act delays or halts the process under this section for payment of a bill submitted by a contractor under subsection (i).


This subsection expires June 30, 2004.
    (v) The department of local government finance, upon receiving notice under subsection (u) from the contractor, shall:
        (1) verify the accuracy of the contractor's assertion in the notice that:
            (A) a failure occurred as described in subsection (b)(1) or (b)(2); or
            (B) a person or entity acted or failed to act as described in subsection (b)(3); and
        (2) provide to the treasurer of state the department of local government finance's approval under subsection (i)(2)(A) of the bill with respect to which the contractor gave notice under subsection (u).
This subsection expires June 30, 2004.
    (w) Upon receipt of the approval of the department of local government finance under subsection (v), the treasurer of state shall pay the contractor the amount of the bill approved by the department of local government finance from money in the possession of the state that would otherwise be available for distribution to the qualifying county, including distributions from the property tax replacement fund or distributions of admissions taxes or wagering taxes. This subsection expires June 30, 2004.
    (x) The treasurer of state shall withhold from the part attributable to the county of the next distribution to the county treasurer under IC 4-33-12-6, IC 4-33-13-5, IC 6-1.1-21-4(b), or another law the amount of any payment made by the treasurer of state to the contractor under subsection (w). Money shall be deducted first from money payable under IC 6-1.1-21.4(b) and then from all other funds payable to the qualifying county. This subsection expires June 30, 2004.
    (y) Compliance with subsections (u) through (x) shall be treated as compliance with IC 5-11-10.This subsection expires June 30, 2004.
    (z) IC 5-11-10-1.6(d) applies to the treasurer of state with respect to the payment made in compliance with subsections (u) through (x). This subsection and subsections (u) through (y) shall be interpreted liberally so that the state shall, to the extent legally valid, ensure that the contractual obligations of a county under this section are paid. Nothing in this subsection or subsections (u) through (y) shall be construed to create a debt of the state. This subsection expires June 30, 2004.

    SECTION 9. IC 6-1.1-5-9.1 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9.1. (a) Except:
         (1) as provided in subsection (b); and
        (2)
for civil townships described in section 9 of this chapter;
and notwithstanding the provisions of sections 1 through 8 of this chapter, for all other civil townships having a population of thirty-five thousand (35,000) or more, for a civil township that falls below a population of thirty-five thousand (35,000) at a federal decennial census that takes effect after December 31, 2001, and for all other civil townships in which a city of the second class is located, the township assessor shall make the real property lists and the plats described in sections 1 through 8 of this chapter.
     (b) In a civil township that attains a population of thirty-five thousand (35,000) or more at a federal decennial census that takes effect after December 31, 2001, the county auditor shall make the real property lists and the plats described in sections 1 through 8 of this chapter unless the township assessor determines to assume the duty from the county auditor.
    (c)
With respect to these townships in which the township assessor makes the real property lists and the plats described in sections 1 through 8 of this chapter, the county auditor shall, upon completing the tax duplicate, return the real property lists to the township assessor for the continuation of the lists by the assessor. If land located in one (1) of these townships is platted, the plat shall be presented to the township assessor instead of the county auditor, before it is recorded. The township assessor shall then enter the lots or parcels described in the plat on the tax lists in lieu of the land included in the plat.
    SECTION 10. IC 6-1.1-5.5-4, AS AMENDED BY P.L.198-2001, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 4. (a) A person filing a sales disclosure form under this chapter shall pay a fee of five dollars ($5) to the county auditor.
     (b) Eighty percent (80%) of the revenue collected under this section and section 12 of this chapter shall be deposited in the county sales disclosure fund established under section 4.5 of this chapter. Twenty percent (20%) of the revenue shall be transferred to the state treasurer for deposit in the state assessment training fund established under section 4.7 of this chapter.
    SECTION 11. IC 6-1.1-5.5-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 10. (a) A person who knowingly and intentionally:
        (1) falsifies the value of transferred real property; or
        (2) omits or falsifies any information required to be provided in

the sales disclosure form;
commits a Class A infraction. misdemeanor.
    (b) A public official who knowingly and intentionally accepts:
        (1) a sales disclosure document for filing that:
            (A) falsifies the value of transferred real property; or
            (B) omits or falsifies any information required to be provided in the sales disclosure form; or
        (2) a conveyance document for recording in violation of section 6 of this chapter;
commits a Class A infraction.
    SECTION 12. IC 6-1.1-5.5-12 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 12. (a) A party to a conveyance who:
        (1) is required to file a sales disclosure form under this chapter; and
        (2) fails to file a sales disclosure form at the time and in the manner required by this chapter;
is subject to a penalty in the amount determined under subsection (b).
    (b) The amount of the penalty under subsection (a) is the greater of:
        (1) one hundred dollars ($100); or
        (2) twenty-five thousandths percent (0.025%) of the sale price of the real property transferred under the conveyance document.
    (c) The township assessor in a county containing a consolidated city, or the county assessor in any other county, shall:
        (1) determine the penalty imposed under this section;
        (2) assess the penalty to the party to a conveyance; and
        (3) notify the party to the conveyance that the penalty is payable not later than thirty (30) days after notice of the assessment.
    (d) The county auditor shall:
        (1) collect the penalty imposed under this section;
        (2) deposit penalty collections as required under section 4 of this chapter; and
        (3) notify the county prosecuting attorney of delinquent payments.
    (e) The county prosecuting attorney shall initiate an action to recover a delinquent penalty under this section. In a successful action against a person for a delinquent penalty, the court shall

award the county prosecuting attorney reasonable attorney's fees.
    SECTION 13. IC 6-1.1-8-30, AS AMENDED BY P.L.198-2001, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 30. If a public utility company files its objections to the department of local government finance's tentative assessment of the company's distributable property in the manner prescribed in section 28 of this chapter, the company may initiate an appeal of the department's final assessment of that property by filing a petition with the Indiana board not more than twenty (20) forty-five (45) days after the department gives the public utility notice of the final determination. The public utility may petition for judicial review of the Indiana board's final determination to the tax court under IC 4-21.5-5. However, the company must:
        (1) file a verified petition for judicial review; and
        (2) mail to the county auditor of each county in which the public utility company's distributable property is located:
            (A) a notice that the complaint was filed; and
            (B) instructions for obtaining a copy of the complaint;
within twenty (20) forty-five (45) days after the date of the notice of the Indiana board's final determination.
    SECTION 14. IC 6-1.1-10-42 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: Sec. 42. (a) A corporation that is:
        (1) nonprofit; and
        (2) participates in the small business incubator program under IC 4-4-18 ;
is exempt from property taxation to the extent of tangible property used for small business incubation.
    (b) A corporation that wishes to obtain an exemption from property taxation under this section must file an exemption application under IC 6-1.1-11.

    SECTION 15. IC 6-1.1-11-3, AS AMENDED BY P.L.198-2001, SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. (a) An owner of tangible property who wishes to obtain an exemption from property taxation shall file a certified application in duplicate with the auditor county assessor of the county in which the property that is the subject of the exemption is located. The application must be filed annually on or before May 15 on forms prescribed by the department of local government finance. The county auditor shall immediately forward a copy of the certified application to the county assessor. Except as provided in sections 1, 3.5, and 4 of this

chapter, the application applies only for the taxes imposed for the year for which the application is filed.
    (b) The authority for signing an exemption application may not be delegated by the owner of the property to any other person except by an executed power of attorney.
    (c) An exemption application which is required under this chapter shall contain the following information:
        (1) A description of the property claimed to be exempt in sufficient detail to afford identification.
        (2) A statement showing the ownership, possession, and use of the property.
        (3) The grounds for claiming the exemption.
        (4) The full name and address of the applicant.
        (5) Any additional information which the department of local government finance may require.
    (d) A person who signs an exemption application shall attest in writing and under penalties of perjury that, to the best of the person's knowledge and belief, a predominant part of the property claimed to be exempt is not being used or occupied in connection with a trade or business that is not substantially related to the exercise or performance of the organization's exempt purpose.
    SECTION 16. IC 6-1.1-11-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. Each county auditor shall, on behalf of the county, collect a fee of two dollars ($2) for each exemption application filed with him under this chapter. Each fee shall be accounted for and paid into the county general fund at the close of each month in the same manner as are other fees due the county. No other fee may be charged by a county auditor, or his the county auditor's employees, for filing or preparing an exemption application.
    SECTION 17. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.4-2000, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2002 (RETROACTIVE)]: Sec. 4.5. (a) For purposes of this section, "personal property" means personal property other than inventory (as defined in IC 6-1.1-3-11(a)).
    (b) An applicant must provide a statement of benefits to the designating body. The applicant must provide the completed statement of benefits form to the designating body before the hearing specified in section 2.5(c) of this chapter or before the installation of the new manufacturing equipment or new research and development equipment, or both, for which the person desires to claim a deduction under this chapter. The state board of tax commissioners shall prescribe

a form for the statement of benefits. The statement of benefits must include the following information:
        (1) A description of the new manufacturing equipment or new research and development equipment, or both, that the person proposes to acquire.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment;
        an estimate of the number of individuals who will be employed or whose employment will be retained by the person as a result of the installation of the new manufacturing equipment or new research and development equipment, or both, and an estimate of the annual salaries of these individuals.
        (3) An estimate of the cost of the new manufacturing equipment or new research and development equipment, or both.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, an estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products by the new manufacturing equipment.
With the approval of the state board of tax commissioners, the statement of benefits may be incorporated in a designation application. Notwithstanding any other law, a statement of benefits is a public record that may be inspected and copied under IC 5-14-3-3.
    (c) The designating body must review the statement of benefits required under subsection (b). The designating body shall determine whether an area should be designated an economic revitalization area or whether the deduction shall be allowed, based on (and after it has made) the following findings:
        (1) Whether the estimate of the cost of the new manufacturing equipment or new research and development equipment, or both, is reasonable for equipment of that type.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment;
        whether the estimate of the number of individuals who will be employed or whose employment will be retained can be

reasonably expected to result from the installation of the new manufacturing equipment or new research and development equipment, or both.
        (3) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed installation of new manufacturing equipment or new research and development equipment, or both.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, whether the estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products can be reasonably expected to result from the installation of the new manufacturing equipment.
        (5) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed installation of new manufacturing equipment or new research and development equipment, or both.
        (6) Whether the totality of benefits is sufficient to justify the deduction.
The designating body may not designate an area an economic revitalization area or approve the deduction unless it makes the findings required by this subsection in the affirmative.
    (d) Except as provided in subsection (f), an owner of new manufacturing equipment whose statement of benefits is approved before May 1, 1991, is entitled to a deduction from the assessed value of that equipment for a period of five (5) years. Except as provided in subsections (f) and (i), subsection (h), an owner of new manufacturing equipment or new research and development equipment, or both, whose statement of benefits is approved after June 30, 2000, is entitled to a deduction from the assessed value of that equipment for the number of years determined by the designating body under subsection (h). (g). Except as provided in subsections subsection (f), and (g), and in section 2(i)(3) of this chapter, the amount of the deduction that an owner is entitled to for a particular year equals the product of:
        (1) the assessed value of the new manufacturing equipment or new research and development equipment, or both, in the year that the equipment is installed; of deduction under the table set forth in subsection (e); multiplied by
        (2) the percentage prescribed in the table set forth in subsection (e).


    (e) The percentage to be used in calculating the deduction under subsection (d) is as follows:
        (1) For deductions allowed over a one (1) year period:
                YEAR OF DEDUCTION        PERCENTAGE
    1st    100%
    2nd and thereafter    0%
    (2) For deductions allowed over a two (2) year period:
        YEAR OF DEDUCTION        PERCENTAGE
    1st    100%
    2nd    50%
    3rd and thereafter    0%
    (3) For deductions allowed over a three (3) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    66%
    3rd    33%
    4th and thereafter    0%
    (4) For deductions allowed over a four (4) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    75%
    3rd    50%
    4th    25%
    5th and thereafter    0%
    (5) For deductions allowed over a five (5) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    80%
    3rd    60%
    4th    40%
    5th    20%
    6th and thereafter    0%
    (6) For deductions allowed over a six (6) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    85%
    3rd    66%
    4th    50%
    5th    34%
    6th    25%
    7th and thereafter    0%
    (7) For deductions allowed over a seven (7) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    85%
    3rd    71%
    4th    57%
    5th    43%
    6th    29%
    7th    14%
    8th and thereafter    0%
    (8) For deductions allowed over an eight (8) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    88%
    3rd    75%
    4th    63%
    5th    50%
    6th    38%
    7th    25%
    8th    13%
    9th and thereafter    0%
    (9) For deductions allowed over a nine (9) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    88%
    3rd    77%
    4th    66%
    5th    55%
    6th    44%
    7th    33%
    8th    22%
    9th    11%
    10th and thereafter    0%
    (10) For deductions allowed over a ten (10) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    90%
    3rd    80%
    4th    70%
    5th    60%
    6th    50%
    7th    40%
    8th    30%
    9th    20%
    10th    10%
    11th and thereafter    0%
    (f) With respect to new manufacturing equipment and new research and development equipment installed before March 2, 2001, the deduction under this section is the amount that causes the net assessed value of the property after the application of the deduction under this section to equal the net assessed value after the application of the deduction under this section that results from computing:
        (1) the deduction under this section as in effect on March 1, 2001; and
        (2) the assessed value of the property under 50 IAC 4.2, as in effect on March 1, 2001, or, in the case of property subject to IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.

Notwithstanding subsections (d) and (e), a deduction under this section is not allowed in the first year the deduction is claimed for new manufacturing equipment or new research and development equipment, or both, to the extent that it would cause the assessed value of all of the personal property of the owner in the taxing district in which the equipment is located (excluding personal property that is assessed as construction in process) to be less than the assessed value of all of the personal property of the owner in that taxing district (excluding personal property that is assessed as construction in process) in the immediately preceding year.
    (g) If a deduction is not fully allowed under subsection (f) in the first year the deduction is claimed, then the percentages specified in subsection (d) or (e) apply in the subsequent years to the amount of deduction that was allowed in the first year.
    (h) (g) For an economic revitalization area designated before July 1, 2000, the designating body shall determine whether a property owner whose statement of benefits is approved after April 30, 1991, is entitled to a deduction for five (5) or ten (10) years. For an economic revitalization area designated after June 30, 2000, the designating body shall determine the number of years the deduction is allowed. However, the deduction may not be allowed for more than ten (10) years. This determination shall be made:
        (1) as part of the resolution adopted under section 2.5 of this chapter; or
        (2) by resolution adopted within sixty (60) days after receiving a copy of a property owner's certified deduction application from the state board of tax commissioners. A certified copy of the

resolution shall be sent to the county auditor and the state board of tax commissioners.
A determination about the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by following the procedure under subdivision (2).
    (i) (h) The owner of new manufacturing equipment that is directly used to dispose of hazardous waste is not entitled to the deduction provided by this section for a particular assessment year if during that assessment year the owner:
        (1) is convicted of a violation under IC 13-7-13-3 (repealed), IC 13-7-13-4 (repealed), or IC 13-30-6; or
        (2) is subject to an order or a consent decree with respect to property located in Indiana based on a violation of a federal or state rule, regulation, or statute governing the treatment, storage, or disposal of hazardous wastes that had a major or moderate potential for harm.
    SECTION 18. IC 6-1.1-15-1, AS AMENDED BY P.L.198-2001, SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) A taxpayer may obtain a review by the county property tax assessment board of appeals of a county or township official's action with respect to the assessment of the taxpayer's tangible property if the official's action requires the giving of notice to the taxpayer. The taxpayer and county or township official whose original determination is under review are parties to the proceeding before the county property tax assessment board of appeals. At the time that notice is given to the taxpayer, the taxpayer shall also be informed in writing of:
        (1) the opportunity for review under this section; and
        (2) the procedures the taxpayer must follow in order to obtain review under this section.
    (b) In order to appeal a current assessment and have a change in the assessment effective for the most recent assessment date, the taxpayer must file a petition with the assessor of the county in which the action is taken:
        (1) within forty-five (45) days after notice of a change in the assessment is given to the taxpayer; or
        (2) May 10 of that year;
whichever is later. The county assessor shall notify the county auditor that the assessment is under appeal.
    (c) A change in an assessment made as a result of an appeal filed:
        (1) in the same year that notice of a change in the assessment is given to the taxpayer; and


        (2) after the time prescribed in subsection (b);
becomes effective for the next assessment date.
    (d) A taxpayer may appeal a current real property assessment in a year even if the taxpayer has not received a notice of assessment in the year. If an appeal is filed on or before May 10 of a year in which the taxpayer has not received notice of assessment, a change in the assessment resulting from the appeal is effective for the most recent assessment date. If the appeal is filed after May 10, the change becomes effective for the next assessment date.
    (e) The department of local government finance shall prescribe the form of the petition for review of an assessment determination by a township assessor. The department shall issue instructions for completion of the form. The form and the instructions must be clear, simple, and understandable to the average individual. An appeal of such a determination must be made on the form prescribed by the department. The form must require the petitioner to specify the following:
        (1) The physical characteristics of the property in issue that bear on the assessment determination.
        (2) All other facts relevant to the assessment determination.
        (3) The reasons why the petitioner believes that the assessment determination by the township assessor is erroneous.
    (f) The department of local government finance shall prescribe a form for a response by the township assessor to the petition for review of an assessment determination. The department shall issue instructions for completion of the form. The form must require the township assessor to indicate:
        (1) agreement or disagreement with each item indicated on the petition under subsection (e); and
        (2) the reasons why the assessor believes that the assessment determination is correct.
    (g) Immediately upon receipt of a timely filed petition on the form prescribed under subsection (e), the county assessor shall forward a copy of the petition to the township assessor who made the challenged assessment. The township assessor shall, within thirty (30) days after the receipt of the petition, attempt to hold a preliminary conference with the petitioner and resolve as many issues as possible. Within ten (10) days after the conference, the township assessor shall forward to the county auditor and county assessor a completed response to the petition on the form prescribed under subsection (f). The county assessor shall immediately forward a copy of the response form to the petitioner and the county property tax assessment board of appeals. If

after the conference there are no items listed in the petition on which there is disagreement:
        (1) the township assessor shall give notice to the petitioner, the county property tax assessment board of appeals, and the county assessor of the assessment in the amount agreed to by the petitioner and the township assessor; and
        (2) the county property tax assessment board of appeals may reserve the right to change the assessment under IC 6-1.1-9.

If after the conference there are items listed in the petition on which there is disagreement, the county property tax assessment board of appeals shall hold a hearing within ninety (90) days of the filing of the petition on those items of disagreement, except as provided in subsection subsections (h) and (i). The taxpayer may present the taxpayer's reasons for disagreement with the assessment. The township assessor or county assessor for the county must present the basis for the assessment decision on these items to the board of appeals at the hearing and the reasons the petitioner's appeal should be denied on those items. The board of appeals shall have a written record of the hearing and prepare a written statement of findings and a decision on each item within sixty (60) days of the hearing, except as provided in subsection subsections (h) and (i). If the township assessor does not attempt to hold a preliminary conference, the board shall accept the appeal of the petitioner at the hearing.
    (h) This subsection applies to a county having a population of more than three hundred thousand (300,000). In the case of a petition filed after December 31, 2000, the county property tax assessment board of appeals shall:
        (1) hold its hearing within one hundred eighty (180) days instead of ninety (90) days; and
        (2) have a written record of the hearing and prepare a written statement of findings and a decision on each item within one hundred twenty (120) days after the hearing.
    (i) This subsection applies to a county having a population of three hundred thousand (300,000) or less. With respect to an appeal of a real property assessment that takes effect on the assessment date on which a general reassessment of real property takes effect under IC 6-1.1-4-4, the county property tax assessment board of appeals shall:
        (1) hold its hearing within one hundred eighty (180) days instead of ninety (90) days; and
        (2) have a written record of the hearing and prepare a written statement of findings and a decision on each item within one

hundred twenty (120) days after the hearing.
    (j)
The county property tax assessment board of appeals:
        (1) may not require a taxpayer that files a petition for review under this section to file documentary evidence or summaries of statements of testimonial evidence before the hearing required under subsection (g); and
        (2) may require the parties to the appeal to file not more than ten (10) days before the date of the hearing required under subsection (g) lists of witnesses and exhibits to be introduced at the hearing.
    SECTION 19. IC 6-1.1-15-5, AS AMENDED BY P.L.198-2001, SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Within fifteen (15) days after the Indiana board gives notice of its final determination under section 4 of this chapter to the party or the maximum allowable time for the issuance of a final determination by the Indiana board under section 4 of this chapter expires, a party to the proceeding may request a rehearing before the Indiana board. The Indiana board may conduct a rehearing and affirm or modify its final determination, giving the same notices after the rehearing as are required by section 4 of this chapter. The Indiana board has fifteen (15) days after receiving a petition for a rehearing to determine whether to grant a rehearing. Failure to grant a rehearing within fifteen (15) days after receiving the petition shall be treated as a final determination to deny the petition. A petition for a rehearing does not toll the time in which to file a petition for judicial review unless the petition for rehearing is granted. If the Indiana board determines to rehear a final determination, the Indiana board:
        (1) may conduct the additional hearings that the Indiana board determines necessary or review the written record without additional hearings; and
        (2) shall issue a final determination within ninety (90) days after notifying the parties that the Indiana board will rehear the final determination.
Failure of the Indiana board to make a final determination within the time allowed under subdivision (2) shall be treated as a final determination affirming the original decision of the Indiana board.
    (b) A person may petition for judicial review of the final determination of the Indiana board regarding the assessment of that person's tangible property. The action shall be taken to the tax court under IC 4-21.5-5. Petitions for judicial review may be consolidated at the request of the appellants if it can be done in the interest of justice. The property tax assessment board of appeals that made the determination under appeal under this section may, with the approval

of the county executive, file an amicus curiae brief in the review proceeding under this section. The expenses incurred by the property tax assessment board of appeals in filing the amicus curiae brief shall be paid from the reassessment fund under IC 6-1.1-4-27. In addition, the executive of a taxing unit may file an amicus curiae brief in the review proceeding under this section if the property whose assessment is under appeal is subject to assessment by that taxing unit. The department of local government finance may intervene in an action taken under this subsection if the interpretation of a rule of the department is at issue in the action. A:
        (1) township assessor, county assessor, member of a county property tax assessment board of appeals, or county property tax assessment board of appeals that made the original assessment determination under appeal under this section; or
        (2) county auditor who made the original enterprise zone inventory credit determination under appeal under IC 6-1.1-20.8;
is a party to the review under this section to defend the determination.
    (c) To initiate a proceeding for judicial review under this section, a person must take the action required by subsection (b) within:
        (1) forty-five (45) days after the Indiana board gives the person notice of its final determination, unless a rehearing is conducted under subsection (a); or
        (2) thirty (30) days after the Indiana board gives the person notice under subsection (a) of its final determination, if a rehearing is conducted under subsection (a) or the maximum time elapses for the Indiana board to make a determination under this section.
    (d) The failure of the Indiana board to conduct a hearing within the period prescribed in section 4(f) or 4(g) of this chapter does not constitute notice to the person of an Indiana board final determination.
    (e) The county executive may petition for judicial review to the tax court in the manner prescribed in this section upon request by the county assessor or elected township assessor.
     (f) If the county executive determines upon a request under this subsection to not appeal to the tax court:
         (1) the entity described in subsection (b) that made the original determination under appeal under this section may take an appeal to the tax court in the manner prescribed in this section using funds from that entity's budget; and
        (2) the petitioner may not be represented by the attorney general in an action described in subdivision (1).
    SECTION 20. IC 6-1.1-15-8, AS AMENDED BY P.L.198-2001, SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

UPON PASSAGE]: Sec. 8. (a) If a final determination by the Indiana board regarding the assessment of any tangible property is vacated, set aside, or adjudged null and void under the decision of the tax court under IC 4-21.5-5, the matter of the assessment of the property shall be remanded to the Indiana board for reassessment and further proceedings as specified in the decision of the tax court with instructions to the Indiana board to refer the matter to the:
        (1) department of local government finance with respect to an appeal of a determination made by the department; or
        (2) county property tax assessment board of appeals with respect to an appeal of a determination made by the county board;
to make another assessment.
Upon remand, the Indiana board may take action only on those issues specified in the decision of the tax court.
    (b) The Indiana board department of local government finance or the county property tax assessment board of appeals shall take action on a case remanded referred to it by the tax court Indiana board under subsection (a) not later than ninety (90) days after the date the decision of the tax court is rendered, referral is made unless an appeal of the final determination of the Indiana board is initiated under IC 4-21.5-5-16. The Indiana board department of local government finance or the county property tax assessment board of appeals may petition the tax court Indiana board at any time for an extension of the ninety (90) day period. An extension shall be granted upon a showing of reasonable cause.
    (c) The taxpayer in a case remanded under subsection (a) may petition the tax court for an order requiring the Indiana board department of local government finance or the county property tax assessment board of appeals to show cause why action has not been taken pursuant to the tax court's decision Indiana board's referral under subsection (a) if:
        (1) at least ninety (90) days have elapsed since the tax court's decision referral was rendered; made;
        (2) the Indiana board department of local government finance or the county property tax assessment board of appeals has not taken action on the issues specified in the tax court's decision; and
        (3) an appeal of the tax court's decision has not been filed.
    (d) If a case remanded under subsection (a) is appealed under IC 4-21.5-5-16, the ninety (90) day period provided in subsection (b) is tolled until the appeal is concluded.


    SECTION 21. IC 6-1.1-15-9, AS AMENDED BY P.L.198-2001, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) If the assessment of tangible property is corrected by the Indiana board department of local government finance or the county property tax assessment board of appeals under section 8 of this chapter, the owner of the property has a right to appeal the Indiana board's final determination of the corrected assessment to the Indiana board. The county executive also has a right to appeal the final determination of the reassessment by the department of local government finance or the county property tax assessment board of appeals but only upon request by the county assessor or elected township assessor.
    (b) An appeal under this section must be initiated in the manner prescribed in section 3 of this chapter or IC 6-1.5-5.

    SECTION 22. IC 6-1.1-15-16 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. Notwithstanding any provision in the 2002 Real Property Assessment Manual and Real Property Assessment Guidelines for 2002-Version A, incorporated by reference in 50 IAC 2.3-1-2, a county property tax assessment board of appeals or the Indiana board shall consider all evidence relevant to the assessment of real property regardless of whether the evidence was submitted to the township assessor before the assessment of the property.
    SECTION 23. IC 6-1.1-17-3, AS AMENDED BY SEA 357-2002, SECTION 148, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. (a) The proper officers of a political subdivision shall formulate its estimated budget and its proposed tax rate and tax levy on the form prescribed by the department of local government finance and approved by the state board of accounts. The political subdivision shall give notice by publication to taxpayers of:
        (1) the estimated budget;
        (2) the estimated maximum permissible levy;
        (3) the current and proposed tax levies of each fund; and
        (4) the amounts of excessive levy appeals to be requested.
In the notice, the political subdivision shall also state the time and place at which a public hearing will be held on these items. The notice shall be published twice in accordance with IC 5-3-1 with the first publication at least ten (10) days before the date fixed for the public hearing.
    (b) The trustee of each township of the county shall:
        (1) estimate the amount necessary to meet the cost of poor relief in the township for the ensuing calendar year; and
        (2) publish with the township budget a tax rate sufficient to meet the estimated cost of poor relief.
The taxes collected as a result of this rate shall be credited to the county poor fund.
    (c) (b) The board of directors of a solid waste management district established under IC 13-21 or IC 13-9.5-2 (before its repeal) may conduct the public hearing required under subsection (a):
        (1) in any county of the solid waste management district; and
        (2) in accordance with the annual notice of meetings published under IC 13-21-5-2.
    SECTION 24. IC 6-1.1-17-5, AS AMENDED BY SEA 399-2002, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The officers of political subdivisions shall meet each year to fix the budget, tax rate, and tax levy of their respective subdivisions for the ensuing budget year as follows:
        (1) The fiscal body of a consolidated city and county, not later than the last meeting of the fiscal body in September.
        (2) The fiscal body of a second class city, not later than September 30.
        (3) The board of school trustees of a school corporation that is located in a city having a population of more than one hundred five thousand (105,000) but less than one hundred twenty thousand (120,000), not later than the time required in section 5.6 of this chapter.
        (4) The proper officers of all other political subdivisions, not later than September 20.
Except in a consolidated city and county and in a second class city, the public hearing required by section 3 of this chapter must be completed at least ten (10) days before the proper officers of the political subdivision meet to fix the budget, tax rate, and tax levy. In a consolidated city and county and in a second class city, that public hearing, by any committee or by the entire fiscal body, may be held at any time after introduction of the budget.
    (b) Ten (10) or more taxpayers may object to a budget, tax rate, or tax levy of a political subdivision fixed under subsection (a) by filing an objection petition with the proper officers of the political subdivision not more than seven (7) days after the hearing. The objection petition must specifically identify the provisions of the budget, tax rate, and tax levy to which the taxpayers object.
    (c) If a petition is filed under subsection (b), the fiscal body of the

political subdivision shall adopt with its budget a finding concerning the objections in the petition and any testimony presented at the adoption hearing.
    (d) This subsection does not apply to a school corporation. Each year at least two (2) days before the first meeting of the county board of tax adjustment held under IC 6-1.1-29-4, a political subdivision shall file with the county auditor:
        (1) a statement of the tax rate and levy fixed by the political subdivision for the ensuing budget year;
        (2) two (2) copies of the budget adopted by the political subdivision for the ensuing budget year; and
        (3) two (2) copies of any findings adopted under subsection (c).
Each year the county auditor shall present these items to the county board of tax adjustment at the board's first meeting.
    (e) In a consolidated city and county and in a second class city, the clerk of the fiscal body shall, notwithstanding subsection (d), file the adopted budget and tax ordinances with the county board of tax adjustment within two (2) days after the ordinances are signed by the executive, or within two (2) days after action is taken by the fiscal body to override a veto of the ordinances, whichever is later.
     (f) If a fiscal body does not fix the budget, tax rate, and tax levy of the political subdivisions for the ensuing budget year as required under this section, the most recent annual appropriations and annual tax levy are continued for the ensuing budget year.
    SECTION 25. IC 6-1.1-17-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 13. (a) Except as provided in subsection (b), ten (10) or more taxpayers may initiate an appeal from the county board of tax adjustment's action on a political subdivision's budget by filing a statement of their objections with the county auditor. The statement must be filed within ten (10) days after the publication of the notice required by section 12 of this chapter. The statement shall specifically identify the provisions of the budget and tax levy to which the taxpayers object. The county auditor shall forward the statement, with the budget, to the state board of tax commissioners. department of local government finance.
    (b) This subsection applies to provisions of the budget and tax levy of a political subdivision:
        (1) against which an objection petition was filed under section 5(b) of this chapter; and
        (2) that were not changed by the fiscal body of the political subdivision after hearing the objections.
A group of ten (10) or more taxpayers may not initiate an appeal

under subsection (a) against provisions of the budget and tax levy if less than seventy-five percent (75%) of the objecting taxpayers with respect to the objection petition filed under section 5(b) of this chapter were objecting taxpayers with respect to the objection statement filed under subsection (a) against those provisions.
    SECTION 26. IC 6-1.1-18-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. Notwithstanding the other provisions of this chapter, the proper officer or officers of a political subdivision may:
        (1) make an appropriation with respect to a contract for the discovery of omitted property if the contract provides the payment for the services performed is to be made from taxes or penalties collected on the discovered property;
        (2) (1) reappropriate money recovered from erroneous or excessive disbursements if the error and recovery are made within the current budget year; or
        (3) (2) refund, without appropriation, money erroneously received.
    SECTION 27. IC 6-1.1-18.5-12, AS AMENDED BY SEA 357-2002, SECTION 167, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 12. (a) Any civil taxing unit that determines that it cannot carry out its governmental functions for an ensuing calendar year under the levy limitations imposed by section 3 of this chapter may, before October 2 September 20 of the calendar year immediately preceding the ensuing calendar year, appeal to the department of local government finance for relief from those levy limitations. In the appeal the civil taxing unit must state that it will be unable to carry out the governmental functions committed to it by law unless it is given the authority that it is petitioning for. The civil taxing unit must support these allegations by reasonably detailed statements of fact.
    (b) The department of local government finance shall promptly deliver to the local government tax control board every appeal petition it receives under subsection (a) and any materials it receives relevant to those appeals. Upon receipt of an appeal petition, the local government tax control board shall immediately proceed to the examination and consideration of the merits of the civil taxing unit's appeal.
    (c) In considering an appeal, the local government tax control board has the power to conduct hearings, require any officer or member of the appealing civil taxing unit to appear before it, or require any officer or member of the appealing civil taxing unit to provide the board with any

relevant records or books.
    (d) If an officer or member:
        (1) fails to appear at a hearing of the local government tax control board after having been given written notice from the local government tax control board requiring his attendance; or
        (2) fails to produce for the local government tax control board's use the books and records that the local government tax control board by written notice required the officer or member to produce;
then the local government tax control board may file an affidavit in the circuit court in the jurisdiction in which the officer or member may be found setting forth the facts of the failure.
    (e) Upon the filing of an affidavit under subsection (d), the circuit court shall promptly issue a summons, and the sheriff of the county within which the circuit court is sitting shall serve the summons. The summons must command the officer or member to appear before the local government tax control board, to provide information to the local government tax control board, or to produce books and records for the local government tax control board's use, as the case may be. Disobedience of the summons constitutes, and is punishable as, a contempt of the circuit court that issued the summons.
    (f) All expenses incident to the filing of an affidavit under subsection (d) and the issuance and service of a summons shall be charged to the officer or member against whom the summons is issued, unless the circuit court finds that the officer or member was acting in good faith and with reasonable cause. If the circuit court finds that the officer or member was acting in good faith and with reasonable cause or if an affidavit is filed and no summons is issued, the expenses shall be charged against the county in which the affidavit was filed and shall be allowed by the proper fiscal officers of that county.
    SECTION 28. IC 6-1.1-18.5-13.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.6. For an appeal filed under section 12 of this chapter, the local government tax control board may recommend that the department of local government finance give permission to a county to increase its levy in excess of the limitations established under section 3 of this chapter if the local government tax control board finds that the county needs the increase to pay for:
        (1) a new voting system; or
        (2) the expansion or upgrade of an existing voting system;
under IC 3-11-6.


    SECTION 29. IC 6-1.1-19-2, AS AMENDED BY SEA 357-2002, SECTION 175, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. (a) A county board of tax adjustment may not approve or recommend the approval of an excessive tax levy.
    (b) If a school corporation adopts or advertises an excessive tax levy, the county board of tax adjustment which reviews the school corporation's budget, tax levy, and tax rate shall reduce the excessive tax levy to the maximum normal tax levy.
    (c) If a county board of tax adjustment approves, or recommends the approval of, an excessive tax levy for a school corporation, the auditor of the county for which the county board is acting shall reduce the excessive tax levy to the maximum normal tax levy. Such a reduction shall be set out in the notice required to be published by the auditor under IC 6-1.1-17-12, and an appeal shall be permitted therefrom as provided under IC 6-1.1-17 as modified by this chapter.
    (d) Appeals from any action of a county board of tax adjustment or county auditor in respect of a school corporation's budget, tax levy, or tax rate may be taken as provided for by IC 6-1.1-17. Notwithstanding IC 6-1.1-17, a school corporation may appeal to the department of local government finance for emergency financial relief for the ensuing calendar year at any time after the budget, tax rate, and tax levy of the school corporation are fixed under IC 6-1.1-17-5, but not later than twenty (20) days after the county auditor publishes notice under IC 6-1.1-17-12 of the tax rate to be charged in the school corporation for before September 20 of the calendar year immediately preceding the ensuing calendar year.
    (e) In the appeal petition in which a school corporation seeks emergency financial relief, the appellant school corporation shall allege that, unless it is given the emergency financial relief for which it petitions, it will be unable to carry out, in the ensuing calendar year, the public educational duty committed to it by law, and it shall support that allegation by reasonably detailed statements of fact.
    (f) When an appeal petition in which a school corporation petitions for emergency financial relief is filed with the department of local government finance, the department shall include, in the notice of the hearing in respect of the petition that it is required to give under IC 6-1.1-17-16, a statement to the effect that the appellant school corporation is seeking emergency financial relief for the ensuing calendar year. A subsequent action taken by the department of local government finance in respect of such an appeal petition is not invalid, however, or otherwise affected, if the department fails to include such

a statement in the hearing notice.
    SECTION 30. IC 6-1.1-20-1.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1.1. As used in this chapter, "controlled project" means any project financed by bonds or a lease, except for the following:
        (1) A project for which the political subdivision reasonably expects to pay:
            (A) debt service; or
            (B) lease rentals;
        from funds other than property taxes that are exempt from the levy limitations of IC 6-1.1-18.5 or IC 6-1.1-19. A project is not a controlled project even though the political subdivision has pledged to levy property taxes to pay the debt service or lease rentals if those other funds are insufficient.
        (2) A project that will not obligate cost the political subdivision to more than two million dollars ($2,000,000). in debt service or lease rentals.
        (3) A project that is being refinanced for the purpose of providing gross or net present value savings to taxpayers.
        (4) A project for which bonds were issued or leases were entered into before January 1, 1996, or where the state board of tax commissioners has approved the issuance of bonds or the execution of leases before January 1, 1996.
        (5) A project that is required by a court order holding that a federal law mandates the project.
    SECTION 31. IC 6-1.1-20-3.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3.1. A political subdivision may not impose property taxes to pay debt service or lease rentals without completing the following procedures:
        (1) The proper officers of a political subdivision shall:
            (A) publish notice in accordance with IC 5-3-1; and
            (B) send notice by first class mail to any organization that delivers to the officers, before January 1 of that year, an annual written request for such notices;
        of any meeting to consider adoption of a resolution or an ordinance making a preliminary determination to issue bonds or enter into a lease and shall conduct a public hearing on a preliminary determination before adoption of the resolution or ordinance.
        (2) When the proper officers of a political subdivision make a preliminary determination to issue bonds or enter into a lease, the officers shall give notice of the preliminary determination by:


            (A) publication in accordance with IC 5-3-1; and
            (B) first class mail to the organizations described in subdivision (1)(B).
        (3) A notice under subdivision (2) of the preliminary determination of the political subdivision to issue bonds or enter into a lease must include the following information:
            (A) The maximum term of the bonds or lease.
            (B) The maximum principal amount of the bonds or the maximum lease rental for the lease.
            (C) The estimated interest rates that will be paid and the total interest costs associated with the bonds or lease.
            (D) The purpose of the bonds or lease.
            (E) A statement that any owners of real property within the political subdivision who want to initiate a petition and remonstrance process against the proposed debt service or lease payments must file a petition that complies with subdivisions (4) and (5) not later than thirty (30) days after publication in accordance with IC 5-3-1.
             (F) With respect to bonds issued or a lease entered into to open:
                (i) a new school facility; or
                (ii) an existing facility that has not been used for at least three (3) years and that is being reopened to provide additional classroom space;
            the estimated costs the school corporation expects to incur annually to operate the facility.
            (G) A statement of whether the school corporation expects to appeal as described in IC 6-1.1-19-4.4(a)(4) for an increased adjusted base levy to pay the estimated costs described in clause (F).

        (4) After notice is given, a petition requesting the application of a petition and remonstrance process may be filed by the lesser of:
            (A) two hundred fifty (250) owners of real property within the political subdivision; or
            (B) ten percent (10%) of the owners of real property within the political subdivision.
        (5) Each petition must be verified under oath by at least one (1) qualified petitioner in a manner prescribed by the state board of accounts before the petition is filed with the county auditor under subdivision (6).
        (6) Each petition must be filed with the county auditor not more than thirty (30) days after publication under subdivision (2) of the

notice of the preliminary determination.
        (7) The county auditor must file a certificate and each petition with:
            (A) the township trustee, if the political subdivision is a township, who shall present the petition or petitions to the township board; or
            (B) the body that has the authority to authorize the issuance of the bonds or the execution of a lease, if the political subdivision is not a township;
        within fifteen (15) business days of the filing of the petition requesting a petition and remonstrance process. The certificate must state the number of petitioners that are owners of real property within the political subdivision.
If a sufficient petition requesting a petition and remonstrance process is not filed by owners of real property as set forth in this section, the political subdivision may issue bonds or enter into a lease by following the provisions of law relating to the bonds to be issued or lease to be entered into.
    SECTION 32. IC 6-1.1-20-3.2, AS AMENDED BY SEA 357-2002, SECTION 192, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3.2. If a sufficient petition requesting the application of a petition and remonstrance process has been filed as set forth in section 3.1 of this chapter, a political subdivision may not impose property taxes to pay debt service or lease rentals without completing the following procedures:
        (1) The proper officers of the political subdivision shall give notice of the applicability of the petition and remonstrance process by:
            (A) publication in accordance with IC 5-3-1; and
            (B) first class mail to the organizations described in section 3.1(1)(B) of this chapter.
        A notice under this subdivision must include a statement that any owners of real property within the political subdivision who want to petition in favor of or remonstrate against the proposed debt service or lease payments must file petitions and remonstrances in compliance with subdivisions (2) through (4) not earlier than thirty (30) days or later than sixty (60) days after publication in accordance with IC 5-3-1.
        (2) Not earlier than thirty (30) days or later than sixty (60) days after the notice under subdivision (1) is given:
            (A) petitions (described in subdivision (3)) in favor of the bonds or lease; and


            (B) remonstrances (described in subdivision (3)) against the bonds or lease;
        may be filed by an owner or owners of real property within the political subdivision. Each signature on a petition must be dated and the date of signature may not be before the date on which the petition and remonstrance forms may be issued under subdivision (3). A petition described in clause (A) or a remonstrance described in clause (B) must be verified in compliance with subdivision (4) before the petition or remonstrance is filed with the county auditor under subdivision (4).
        (3) The state board of accounts shall design and, upon request by the county auditor, deliver to the county auditor or the county auditor's designated printer the petition and remonstrance forms to be used solely in the petition and remonstrance process described in this section. The county auditor shall issue to an owner or owners of real property within the political subdivision the number of petition or remonstrance forms requested by the owner or owners. Each form must be accompanied by instructions detailing the requirements that:
            (A) the carrier and signers must be owners of real property;
            (B) the carrier must be a signatory on at least one (1) petition;
            (C) after the signatures have been collected, the carrier must swear or affirm before a notary public that the carrier witnessed each signature; and
            (D) govern the closing date for the petition and remonstrance period.
        Persons requesting forms may not be required to identify themselves and may be allowed to pick up additional copies to distribute to other property owners. The county auditor may not issue a petition or remonstrance form earlier than twenty-nine (29) days after the notice is given under subdivision (1). The county auditor shall certify the date of issuance on each petition or remonstrance form that is distributed under this subdivision.
        (4) The petitions and remonstrances must be verified in the manner prescribed by the state board of accounts and filed with the county auditor within the sixty (60) day period described in subdivision (2) in the manner set forth in section 3.1 of this chapter relating to requests for a petition and remonstrance process.
        (5) The county auditor must file a certificate and the petition or remonstrance with the body of the political subdivision charged with issuing bonds or entering into leases within fifteen (15)

business days of the filing of a petition or remonstrance under subdivision (4), whichever applies, containing ten thousand (10,000) signatures or less. The county auditor may take an additional five (5) days to review and certify the petition or remonstrance for each additional five thousand (5,000) signatures up to a maximum of sixty (60) days. The certificate must state the number of petitioners and remonstrators that are owners of real property within the political subdivision.
        (6) If a greater number of owners of real property within the political subdivision sign a remonstrance than the number that signed a petition, the bonds petitioned for may not be issued or the lease petitioned for may not be entered into. The proper officers of the political subdivision may not make a preliminary determination to issue bonds or enter into a lease for the controlled project defeated by the petition and remonstrance process under this section or any other controlled project that is not substantially different within one (1) year after the date of the county auditor's certificate under subdivision (5). Withdrawal of a petition carries the same consequences as a defeat of the petition.
        (7) After a political subdivision has gone through the petition and remonstrance process set forth in this section, the political subdivision is not required to follow any other remonstrance or objection procedures under any other law (including section 5 of this chapter) relating to bonds or leases designed to protect owners of real property within the political subdivision from the imposition of property taxes to pay debt service or lease rentals. However, the political subdivision must still receive the approval of the department of local government finance required by IC 6-1.1-18.5-8 or IC 6-1.1-19-8.
    SECTION 33. IC 6-1.1-26-2, AS AMENDED BY P.L.198-2001, SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. (a) The county auditor shall forward a claim for refund filed under section 1 of this chapter to the department of local government finance for review by the department if:
        (1) the claim is for the refund of taxes paid on an assessment made or determined by the state board of tax commissioners (before the board was abolished) or the department of local government finance; and
        (2) the claim is based upon the grounds specified in IC 6-1.1-26-1(4)(ii) section 1(4)(ii) or IC 6-1.1-26-1(4)(iii). 1(4)(iii) of this chapter.


    (b) The department of local government finance shall review each refund claim forwarded to it under this section. The department shall certify its approval or disapproval on the claim and shall return the claim to the county auditor.
    (c) Before the department of local government finance disapproves a refund claim that is forwarded to it under this section, the department shall notify the claimant of its intention to disapprove the claim and of the time and place fixed for a hearing on the claim. The department shall hold the hearing within thirty (30) days after the date of the notice. The claimant has a right to be heard at the hearing. After the hearing, the department shall give the claimant notice of the department's final determination on the claim.
    (d) If a person desires to initiate an appeal of the final determination of the department of local government finance to disapprove a claim under subsection (c), the person shall file a petition for review with the Indiana board appropriate county assessor not more than forty-five (45) days after the department gives the person notice of the final determination.
    (e) If a person desires to initiate a proceeding for judicial review of the Indiana board's final determination under subsection (d), the person must petition for judicial review under IC 4-21.5-5 not more than forty-five (45) days after the Indiana board gives the person notice of the final determination.
    SECTION 34. IC 6-1.1-26-5, AS AMENDED BY P.L.198-2001, SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 5. (a) When a claim for refund filed under section 1 of this chapter is allowed either by the county board of commissioners, the department of local government finance, the Indiana board, or the Indiana tax court on appeal, the claimant is entitled to a refund. The amount of the refund shall equal the amount of the claim so allowed plus, with respect to claims for refund filed after June 30, December 31, 2001, interest at four percent (4%) from the date on which the taxes were paid or payable, whichever is later, to the date of the refund. The county auditor shall, without an appropriation being required, issue a warrant to the claimant payable from the county general fund for the amount due the claimant under this section.
    (b) In the June or December settlement and apportionment of taxes, or both the June and December settlement and apportionment of taxes, immediately following a refund made under this section the county auditor shall deduct the amount refunded from the gross tax collections of the taxing units for which the refunded taxes were originally paid

and shall pay the amount so deducted into the general fund of the county. However, the county auditor shall make the deductions and payments required by this subsection not later than the December settlement and apportionment.
    SECTION 35. IC 6-1.1-28-1, AS AMENDED BY P.L.198-2001, SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Each county shall have a county property tax assessment board of appeals composed of individuals who are at least eighteen (18) years of age and knowledgeable in the valuation of property. In addition to the county assessor, only one (1) other individual who is an officer or employee of a county or township may serve on the board of appeals in the county in which the individual is an officer or employee. The fiscal body of the county shall appoint two (2) individuals to the board. At least one (1) of the members appointed by the county fiscal body must be a certified level two assessor-appraiser. The board of commissioners of the county shall appoint two (2) freehold members so that not more than three (3) of the five (5) members may be of the same political party and so that at least three (3) of the five (5) members are residents of the county. At least one (1) of the members appointed by the board of county commissioners must be a certified level two assessor-appraiser. However, if the county assessor is a certified level 2 Indiana two assessor-appraiser, the board of county commissioners may waive the requirement in this subsection that one (1) of the freehold members appointed by the board of county commissioners must be a certified level 2 Indiana two assessor-appraiser. A person appointed to a property tax assessment board of appeals may serve on the property tax assessment board of appeals of another county at the same time. The members of the board shall elect a president. The employees of the county assessor shall provide administrative support to the property tax assessment board of appeals. The county assessor is a voting member of the property tax assessment board of appeals. The county assessor shall serve as secretary of the board. The secretary shall keep full and accurate minutes of the proceedings of the board. A majority of the board that includes at least one (1) certified level two assessor-appraiser constitutes a quorum for the transaction of business. Any question properly before the board may be decided by the agreement of a majority of the whole board.
    (b) The county assessor, county fiscal body, and board of county commissioners may agree to waive the requirement in subsection (a) that not more than three (3) of the five (5) members of the county property tax assessment board of appeals may be of the same political

party if it is necessary to waive the requirement due to the absence of certified level 2 two Indiana assessor-appraisers:
        (1) who are willing to serve on the board; and
        (2) whose political party membership status would satisfy the requirement in subsection (c)(1).
    (c) If the board of county commissioners is not able to identify at least two (2) prospective freehold members of the county property tax assessment board of appeals who are:
        (1) residents of the county;
        (2) certified level 2 two Indiana assessor-appraisers; and
        (3) willing to serve on the county property tax assessment board of appeals;
it is not necessary that at least three (3) of the five (5) members of the county property tax assessment board of appeals be residents of the county.
    SECTION 36. IC 6-1.1-30-1.1, AS ADDED BY P.L.198-2001, SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1.1. (a) The department of local government finance is established.
     (b) The governor shall appoint an individual with appropriate training and experience as commissioner of the department. The commissioner:
        (1) is the executive and chief administrative officer of the department;
        (2) may delegate authority to appropriate department staff;
        (3) serves at the pleasure of the governor; and
        (4) is entitled to receive compensation in an amount set by the governor, subject to approval by the budget agency.

    SECTION 37. IC 6-1.1-35-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. (a) All information which that is related to earnings, income, profits, losses, or expenditures and which that is: either
         (1) given by a person to:
             (A) an assessing official;
             (B) a member of a county property tax assessment board of appeals;
             (C) a county assessor; or one (1) of their employees
             (D) an employee of a person referred to in clauses (A) through (C); or
             (E) an officer or employee of an entity that contracts with a board of county commissioners, a county assessor, or an elected township assessor under IC 6-1.1-36-12; or


        (2) acquired by:
             (A) an assessing official;
             (B) a member of a county property tax assessment board of appeals;
             (C) a county assessor; or one (1) of their employees
             (D) an employee of a person referred to in clauses (A) through (C); or
            (E) an officer or employee of an entity that contracts with a board of county commissioners, a county assessor, or an elected township assessor under IC 6-1.1-36-12;
        
in the performance of his the person's duties;
is confidential. The assessed valuation of tangible property is a matter of public record and is thus not confidential. Confidential information may be disclosed only in a manner which that is authorized under subsection (b), (c), or (d).
    (b) Confidential information may be disclosed to:
         (1) an official or employee of:
            (1) (A) this state or another state;
            (2) (B) the United States; or
            (3) (C) an agency or subdivision of this state, another state, or the United States;
        if the information is required in the performance of his the official duties of the official or employee; or
        (2) an officer or employee of an entity that contracts with a board of county commissioners, a county assessor, or an elected township assessor under IC 6-1.1-36-12 if the information is required in the performance of the official duties of the officer or employee.

    (c) The following state agencies, or their authorized representatives, shall have access to the confidential farm property records and schedules which that are on file in the office of a county or township assessor:
        (1) the Indiana state board of animal health, in order to perform its duties concerning the discovery and eradication of farm animal diseases;
        (2) the department of agricultural statistics of Purdue University, in order to perform its duties concerning the compilation and dissemination of agricultural statistics; and
        (3) any other state agency which that needs the information in order to perform its duties.
    (d) Confidential information may be disclosed during the course of a judicial proceeding in which the regularity of an assessment is

questioned.
    (e) Confidential information which that is disclosed to a person under subsection (b) or (c) of this section retains its confidential status. Thus, that person may disclose the information only in a manner which that is authorized under subsection (b), (c), or (d). of this section.
     (f) Notwithstanding any other provision of law:
        (1) a person who:
            (A) is an officer or employee of an entity that contracts with a board of county commissioners, a county assessor, or an elected township assessor under IC 6-1.1-36-12; and
            (B) obtains confidential information under this section;
        may not disclose that confidential information to any other person; and
        (2) a person referred to in subdivision (1) must return all confidential information to the taxpayer not later than fourteen (14) days after the earlier of:
            (A) the completion of the examination of the taxpayer's personal property return under IC 6-1.1-36-12; or
            (B) the termination of the contract.

    SECTION 38. IC 6-1.1-35-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. (a) An assessing official, member of a county property tax assessment board of appeals, a state board member, or an employee of any assessing official, county assessor, or board shall immediately be dismissed from that position if he the person discloses in an unauthorized manner any information which that is classified as confidential under section 9 of this chapter.
     (b) If an officer or employee of an entity that contracts with a board of county commissioners, a county assessor, or an elected township assessor under IC 6-1.1-36-12 discloses in an unauthorized manner any information that is classified as confidential under section 9 of this chapter:
        (1) the contract between the entity and the board is void as of the date of the disclosure;
        (2) the entity forfeits all right to payments owed under the contract after the date of disclosure;
        (3) the entity and its affiliates are barred for three (3) years after the date of disclosure from entering into a contract with a board, a county assessor, or an elected township assessor under IC 6-1.1-36-12; and
        (4) the taxpayer whose information was disclosed has a right of action for triple damages against the entity.

    SECTION 39. IC 6-1.1-36-12 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 12. (a) If A board of county commissioners, enters a county assessor, or an elected township assessor may enter into a properly approved contract for the discovery of property which that has been undervalued or omitted from assessment. The contract must prohibit payment to the contractor for discovery of undervaluation or omission with respect to a parcel or personal property return before all appeals of the assessment of the parcel or the assessment under the return have been finalized. The contract may require the contractor to:
        (1) examine and verify the accuracy of personal property returns filed by taxpayers with a township assessor of a township in the county; and
        (2) compare a return with the books of the taxpayer and with personal property owned, held, possessed, controlled, or occupied by the taxpayer.
    (b)
The investigation and collection expenses shall of a contract under subsection (a) may be deducted from the gross amount of taxes collected on the undervalued or omitted property which that is so discovered. The remainder of the taxes collected on the undervalued or omitted property shall be distributed to the appropriate taxing units.
     (c) A board of county commissioners, a county assessor, or an elected township assessor may not contract for services under subsection (a) on a percentage basis.
    SECTION 40. IC 6-1.5-5-1, AS ADDED BY P.L.198-2001, SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) The Indiana board shall conduct impartial review of all appeals of final determinations of the department of local government finance made under the following:
        (1) IC 6-1.1-8.
        (2) IC 6-1.1-12.1.
        (3) IC 6-1.1-14.
        (4) IC 6-1.1-16.
        (5) IC 6-1.1-26-2.
    (b) Each notice of final determination issued by the department of local government finance under a statute listed in subsection (a) must give the taxpayer notice of:
        (1) the opportunity for review under this section; and
        (2) the procedures the taxpayer must follow in order to obtain review under this section.
    (c) Except as provided in subsections (e) and (f), in order to obtain a review by the Indiana board under this section, the taxpayer must file a petition for review with the appropriate county assessor

within forty-five (45) days after the notice of the department of local government finance's action is given to the taxpayer.
    (d) The county assessor shall transmit the a petition for review under subsection (c) to the Indiana board within ten (10) days after it is filed.
     (e) In order to obtain a review by the Indiana board of an appeal of a final determination of the department of local government finance under IC 6-1.1-8-30, the public utility company must follow the procedures in IC 6-1.1-8-30.
    (f) In order to obtain a review by the Indiana board of an appeal of a final determination of the department of local government finance under IC 6-1.1-12.1-5.7(h), the person must follow the procedures in IC 6-1.1-12.1-5.7(h).

    SECTION 41. IC 6-3.1-13-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. As used in this chapter, "credit amount" means the amount agreed to between the board and applicant under this chapter, but not to exceed, in the case of a credit awarded for a project to create new jobs in Indiana, the incremental income tax withholdings attributable to the applicant's project.
    SECTION 42. IC 6-3.1-13-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 13. (a) The board may make credit awards under this chapter to foster job creation in Indiana or, as provided in section 15.5 of this chapter, job retention in Indiana.
    (b) The credit shall be claimed for the taxable years specified in the taxpayer's tax credit agreement.
    SECTION 43. IC 6-3.1-13-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. A person that proposes a project to create new jobs in Indiana may apply, as provided in section 15 of this chapter, to the board to enter into an agreement for a tax credit under this chapter. A person that proposes to retain existing jobs in Indiana may apply, as provided in section 15.5 of this chapter, to the board to enter into an agreement for a tax credit under this chapter. The director shall prescribe the form of the application.
    SECTION 44. IC 6-3.1-13-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. This section applies to an application proposing a project to create new jobs in Indiana. After receipt of an application, the board may enter into an agreement with the applicant for a credit under this chapter if the board determines that all of the following conditions exist:


        (1) The applicant's project will create new jobs that were not jobs previously performed by employees of the applicant in Indiana.
        (2) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment in Indiana and strengthening the economy of Indiana.
        (3) There is at least one (1) other state that the applicant verifies is being considered for the project.
        (4) A significant disparity is identified, using best available data, in the projected costs for the applicant's project compared to the costs in the competing state, including the impact of the competing state's incentive programs. The competing state's incentive programs shall include state, local, private, and federal funds available.
        (5) (3) The political subdivisions affected by the project have committed significant local incentives with respect to the project.
        (6) (4) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project and not receiving the tax credit will result in the applicant not creating new jobs in Indiana.
        (7) (5) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
        (8) (6) The credit is not prohibited by section 16 of this chapter.
    SECTION 45. IC 6-3.1-13-15.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15.5. This section applies to an application proposing to retain existing jobs in Indiana. After receipt of an application, the board may enter into an agreement with the applicant for a credit under this chapter if the board determines that all the following conditions exist:
         (1) The applicant's project will retain existing jobs performed by the employees of the applicant in Indiana.
         (2) The applicant provides evidence that there is at least one (1) other competing site outside Indiana that is being considered for the project or for the relocation of jobs.
         (3) A disparity is identified, using the best available data, in the projected costs for the applicant's project in Indiana compared with the costs for the project in the competing site.
         (4) The applicant is engaged in research and development, manufacturing, or business services (as defined in the Standard Industrial Classification Manual of the United States Office of Management and Budget).
        (5) The average compensation (including benefits) provided

to the applicant's employees during the applicant's previous fiscal year exceeds the average compensation paid during that same period to all employees in the county in which the applicant's business is located by at least five percent (5%).
        (6) The applicant employs at least two hundred (200) employees in Indiana.
        (7) The applicant has prepared a plan for the use of the credits under this chapter for:
            (A) investment in facility improvements or equipment and machinery upgrades, repairs, or retrofits; or
            (B) other direct business related investments, including but not limited to training.

         (8) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project, and not receiving the tax credit will increase the likelihood of the applicant reducing jobs in Indiana.
         (9) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
         (10) The applicant's business and project are economically sound and will benefit the people of Indiana by increasing or maintaining opportunities for employment and strengthening the economy of Indiana.
         (11) The communities affected by the potential reduction in jobs or relocation of jobs to another site outside Indiana have committed at least one dollar and fifty cents ($1.50) of local incentives with respect to the retention of jobs for every three dollars ($3) in credits provided under this chapter. For purposes of this subdivision, local incentives include, but are not limited to, cash grants, tax abatements, infrastructure improvements, investment in facility rehabilitation, construction, and training investments.
         (12) The credit is not prohibited by section 16 of this chapter.
    SECTION 46. IC 6-3.1-13-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. In determining the credit amount that should be awarded to an applicant under section 15 of this chapter that proposes a project to create jobs in Indiana, the board shall take into consideration the following factors:
        (1) The economy of the county where the projected investment is to occur.
        (2) The potential impact on the economy of Indiana.


        (3) The magnitude of the cost differential between Indiana and the competing state.
        (4) (3) The incremental payroll attributable to the project.
        (5) (4) The capital investment attributable to the project.
        (6) (5) The amount the average wage paid by the applicant exceeds the average wage paid within the county in which the project will be located.
        (7) (6) The costs to Indiana and the affected political subdivisions with respect to the project.
        (8) (7) The financial assistance that is otherwise provided by Indiana and the affected political subdivisions.
As appropriate, the board shall consider the factors in this section to determine the credit amount awarded to an applicant for a project to retain existing jobs in Indiana under section 15.5 of this chapter. In the case of an applicant under section 15.5 of this chapter, the board shall consider the magnitude of the cost differential between the projected costs for the applicant's project in the competing site outside Indiana and the projected costs for the applicant's project in Indiana.
    SECTION 47. IC 6-3.1-13-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 18. (a) The board shall determine the amount and duration of a tax credit awarded under this chapter. The duration of the credit may not exceed ten (10) taxable years. The credit may be stated as a percentage of the incremental income tax withholdings attributable to the applicant's project and may include a fixed dollar limitation. In the case of a credit awarded for a project to create new jobs in Indiana, the credit amount may not exceed the incremental income tax withholdings. However, the credit amount claimed for a taxable year may exceed the taxpayer's state tax liability for the taxable year, in which case the excess shall be refunded to the taxpayer.
     (b) For state fiscal years 2004 and 2005, the aggregate amount of credits awarded under this chapter for projects to retain existing jobs in Indiana may not exceed five million dollars ($5,000,000) per year.
    SECTION 48. IC 6-3.1-13-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 19. In the case of a credit awarded for a project to create new jobs in Indiana, the board shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the project that is the subject of the

agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The credit amount that will be allowed for each taxable year.
        (4) A requirement that the taxpayer shall maintain operations at the project location for at least two (2) times the number of years as the term of the tax credit. A taxpayer is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee.
        (6) A requirement that the taxpayer shall annually report to the board the number of new employees who are performing jobs not previously performed by an employee, the new income tax revenue withheld in connection with the new employees, and any other information the director needs to perform the director's duties under this chapter.
        (7) A requirement that the director is authorized to verify with the appropriate state agencies the amounts reported under subdivision (6), and after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.
        (8) A requirement that the taxpayer shall provide written notification to the director and the board not more than thirty (30) days after the taxpayer makes or receives a proposal that would transfer the taxpayer's state tax liability obligations to a successor taxpayer.
        (9) Any other performance conditions that the board determines are appropriate.
    SECTION 49. IC 6-3.1-13-19.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 19.5. (a) In the case of a credit awarded for a project to retain existing jobs in Indiana, the board shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the business that is the subject of the agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The credit amount that will be allowed for each taxable year.


        (4) A requirement that the applicant shall maintain operations at the project location for at least two (2) times the number of years as the term of the tax credit. An applicant is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) A requirement that the applicant shall annually report the following to the board:
            (A) The number of employees who are employed in Indiana by the applicant.
            (B) The compensation (including benefits) paid to the applicant's employees in Indiana.
            (C) The amount of the:

                 (i) facility improvements;
                 (ii) equipment and machinery upgrades, repairs, or retrofits; or
                (iii) other direct business related investments, including training.
        (6) A requirement that the applicant shall provide written notification to the director and the board not more than thirty (30) days after the applicant makes or receives a proposal that would transfer the applicant's state tax liability obligations to a successor taxpayer.
        (7) A requirement that the chief executive officer of the company applying for a credit under this chapter must verify under penalty of perjury that the disparity between projected costs of the applicant's project in Indiana compared with the costs for the project in a competing site is real and actual.
        (8) Any other performance conditions that the board determines are appropriate.

     (b) An agreement between an applicant and the board must be submitted to the budget committee for review and must be approved by the budget agency before an applicant is awarded a credit under this chapter for a project to retain existing jobs in Indiana.
    SECTION 50. IC 6-3.1-13-24 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 24. On a biennial basis, the board shall provide for an evaluation of the tax credit program, giving first priority to using the Indiana economic development council, established under IC 4-3-14-4. The evaluation shall include an assessment of the effectiveness of the program in creating new jobs and retaining existing jobs in Indiana and of the

revenue impact of the program, and may include a review of the practices and experiences of other states with similar programs. The director shall submit a report on the evaluation to the governor, the president pro tempore of the senate, and the speaker of the house of representatives after June 30 and before November 1 in each odd-numbered year.
    SECTION 51. IC 6-3.1-20-7, AS ADDED BY P.L.151-2001, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. (a) The department shall before July 1 of each year determine the amount of credits allowed under this chapter for taxable years ending before January 1 of the year.
    (b) One-half (1/2) of the amount determined by the department under subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions tax revenue otherwise payable to the county under IC 4-33-12-6(b)(2); IC 4-33-12-6(d)(2); and
        (2) paid instead to the state general fund.
    (c) One-sixth (1/6) of the amount determined by the department under subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions tax revenue otherwise payable under IC 4-33-12-6(b)(1) IC 4-33-12-6(d)(1) to each of the following:
            (A) The largest city by population located in the county.
            (B) The second largest city by population located in the county.
            (C) The third largest city by population located in the county; and
        (2) paid instead to the state general fund.
    SECTION 52. IC 6-3.5-1.1-2, AS AMENDED BY P.L.135-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The county council of any county in which the county option income tax will not be in effect on July 1 of a year under an ordinance adopted during a previous calendar year may impose the county adjusted gross income tax on the adjusted gross income of county taxpayers of its county effective July 1 of that year.
    (b) Except as provided in section 2.5, 2.7, 2.8, 2.9, or 3.5, or 3.6 of this chapter, the county adjusted gross income tax may be imposed at a rate of one-half of one percent (0.5%), three-fourths of one percent (0.75%), or one percent (1%) on the adjusted gross income of resident county taxpayers of the county. Any county imposing the county adjusted gross income tax must impose the tax on the nonresident county taxpayers at a rate of one-fourth of one percent (0.25%) on their

adjusted gross income. If the county council elects to decrease the county adjusted gross income tax, the county council may decrease the county adjusted gross income tax rate in increments of one-tenth of one percent (0.1%).
    (c) To impose the county adjusted gross income tax, the county council must, after January 1 but before April 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
        "The ________ County Council imposes the county adjusted gross income tax on the county taxpayers of ________ County. The county adjusted gross income tax is imposed at a rate of _____ percent (_____%) on the resident county taxpayers of the county and one-fourth of one percent (0.25%) on the nonresident county taxpayers of the county. This tax takes effect July 1 of this year.".
    (d) Any ordinance adopted under this section takes effect July 1 of the year the ordinance is adopted.
    (e) 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.
    (f) If the county adjusted gross income tax had previously been adopted by a county under IC 6-3.5-1 (before its repeal on March 15, 1983) and that tax was in effect at the time of the enactment of this chapter, then the county adjusted gross income tax continues in that county at the rates in effect at the time of enactment until the rates are modified or the tax is rescinded in the manner prescribed by this chapter. If a county's adjusted gross income tax is continued under this subsection, then the tax shall be treated as if it had been imposed under this chapter and is subject to rescission or reduction as authorized in this chapter.
    SECTION 53. IC 6-3.5-1.1-2.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.8. (a) This section applies to:
         (1) a county having a population of more than one hundred eighty-two thousand seven hundred ninety (182,790) but less than two hundred thousand (200,000); and
         (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in

the county to:
        (1) finance, construct, acquire, improve, renovate, or equip:
            (A) jail facilities;
            (B) juvenile court, detention, and probation facilities;
            (C) other criminal justice facilities; and
            (D) related buildings and parking facilities;
        located in the county, including costs related to the demolition of existing buildings and the acquisition of land; and
        (2) repay bonds issued or leases entered into for the purposes described in subdivision (1).
    (c) In addition to the rates permitted by section 2 of this chapter, the county council may impose the county adjusted gross income tax at a rate of:
        (1) fifteen-hundredths percent (0.15%);
        (2) two-tenths percent (0.2%); or (3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the later of the date on which the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b) are completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty (20) years.
    (d) If the county council makes a determination under subsection (b), the county council may adopt a tax rate under subsection (c). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of carrying out the purposes described in subsection (b)(1).
    (e) The county treasurer shall establish a criminal justice facilities revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the criminal justice facilities revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax rate imposed under this section:
        (1) may be used only for the purposes described in this section;


        (2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and
        (3) may be pledged to the repayment of bonds issued or leases entered into for any or all the purposes described in subsection (b).
    (g) Notwithstanding any other law, funds accumulated from the county adjusted gross income tax imposed under this section after:
        (1) the completion of the financing, construction, acquisition, improvement, renovation, and equipping described in subsection (b);
        (2) the payment or provision for payment of all the costs for activities described in subdivision (1);
        (3) the redemption of bonds issued; and
        (4) the final payment of lease rentals due under a lease entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

    SECTION 54. IC 6-3.5-1.1-2.9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.9. (a) This section applies to a county having a population of more than twenty-nine thousand (29,000) but less than thirty thousand (30,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, remodel, or equip the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs; and
        (2) repay bonds issued or leases entered into for constructing, acquiring, improving, renovating, remodeling, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.
    (c) In addition to the rates permitted by section 2 of this chapter, the county council may impose the county adjusted gross income tax at a rate of:
        (1) fifteen-hundredths percent (0.15%);
        (2) two-tenths percent (0.2%); or (3) twenty-five hundredths percent (0.25%);
on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the later of the date on which the financing on, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty-five (25) years.
    (d) If the county council makes a determination under subsection (b), the county council may adopt a tax rate under subsection (b). The tax rate may not be imposed at a rate greater than is necessary to pay the costs of financing, acquiring, improving, renovating, remodeling, and equipping the county jail and related buildings and parking facilities, including costs related to the demolition of existing buildings, the acquisition of land, and any other reasonably related costs.
    (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax rate imposed under this section:
        (1) may be used only for the purposes described in this section;
        (2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and
        (3) may be pledged to the repayment of bonds issued or leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique governmental and economic development challenges due to:
        (1) underemployment in relation to similarly situated counties and the loss of a major manufacturing business;
        (2) an increase in property taxes for taxable years after December 31, 2000, for the construction of a new elementary

school; and
        (3) overcrowding of the county jail, the costs associated with housing the county's inmates outside the county, and the potential unavailability of additional housing for inmates outside the county.
The use of county adjusted gross income tax revenues as provided in this chapter is necessary for the county to provide adequate jail capacity in the county and to maintain low property tax rates essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, remodeling, and equipping described in subsection (b), rather than the use of property taxes, promotes those purposes.
    (h) Notwithstanding any other law, funds accumulated from the county adjusted gross income tax imposed under this section after:
        (1) the redemption of bonds issued; or
        (2) the final payment of lease rentals due under a lease entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

    SECTION 55. IC 6-3.5-1.1-3.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.6. (a) This section applies only to a county having a population of more than six thousand (6,000) but less than eight thousand (8,000).
    (b) The county council may, by ordinance, determine that additional county adjusted gross income tax revenue is needed in the county to:
        (1) finance, construct, acquire, improve, renovate, or equip the county courthouse; and
        (2) repay bonds issued, or leases entered into, for constructing, acquiring, improving, renovating, and equipping the county courthouse.
    (c) In addition to the rates permitted under section 2 of this chapter, the county council may impose the county adjusted gross income tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (b). The tax imposed under this section may be imposed only until the later of the date on which the financing on, acquisition,

improvement, renovation, and equipping described in subsection (b) is completed or the date on which the last of any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b) are fully paid. The term of the bonds issued (including any refunding bonds) or a lease entered into under subsection (b)(2) may not exceed twenty-two (22) years.
    (d) If the county council makes a determination under subsection (b), the county council may adopt a tax rate under subsection (b). The tax rate may not be imposed for a time greater than is necessary to pay the costs of financing, constructing, acquiring, renovating, and equipping the county courthouse.
    (e) The county treasurer shall establish a county jail revenue fund to be used only for purposes described in this section. County adjusted gross income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before a certified distribution is made under section 11 of this chapter.
    (f) County adjusted gross income tax revenues derived from the tax rate imposed under this section:
        (1) may only be used for the purposes described in this section;
        (2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy under IC 6-1.1-18.5; and
        (3) may be pledged to the repayment of bonds issued or leases entered into for purposes described in subsection (b).
    (g) A county described in subsection (a) possesses unique economic development challenges due to:
        (1) the county's heavy agricultural base;
        (2) the presence of a large amount of state owned property in the county that is exempt from property taxation; and
        (3) recent obligations of the school corporation in the county that have already increased property taxes in the county and imposed additional property tax burdens on the county's agricultural base.
Maintaining low property tax rates is essential to economic development. The use of county adjusted gross income tax revenues as provided in this chapter to pay any bonds issued or leases entered into to finance the construction, acquisition, improvement, renovation, and equipping described in subsection (b), rather than the use of property taxes, promotes that purpose.


    (h) Notwithstanding any other law, funds accumulated from the county adjusted gross income tax imposed under this section after:
        (1) the redemption of the bonds issued; or
        (2) the final payment of lease rentals due under a lease entered into under this section;
shall be transferred to the county highway fund to be used for construction, resurfacing, restoration, and rehabilitation of county highways, roads, and bridges.

    SECTION 56. IC 6-3.5-1.1-9.5, AS AMENDED BY SEA 357-2002, SECTION 292, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9.5. (a) After January 1 and before April 1 of a year, the county council of a county may adopt an ordinance to reduce the required six (6) month balance of that county's special account to a three (3) month balance for that county.
    (b) To reduce the balance, a county council must adopt an ordinance. The ordinance must substantially state the following:
    "The _______ County council elects to reduce the required county income tax special account balance from a six (6) month balance to a three (3) month balance within ninety (90) days after the adoption of this ordinance.".
    (c) Not more than thirty (30) days after adopting an ordinance under subsection (b), the county council shall deliver a copy of the ordinance to the budget agency.
    (d) Not later than:
        (1) sixty (60) days after a county council adopts an ordinance under subsection (b); and
        (2) December 31; of each year;
the budget agency shall make the calculation described in subsection (e). Not later than ninety (90) days after the ordinance is adopted, the budget agency shall make an initial distribution to the county auditor of the amount determined under subsection (e) STEP FOUR. Subsequent distributions needed to distribute any amount in the county income tax special account that exceeds a three (3) month balance, as determined under STEP FOUR of subsection (e), shall be made in January of the ensuing calendar year after the calculation is made.
    (e) The budget agency shall make the following calculation:
        STEP ONE: Determine the cumulative balance in a county's account established under section 8 of this chapter.
        STEP TWO: Divide the amount estimated under section 9(b) of this chapter before any adjustments are made under section 9(c) or 9(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.
    (f) For the purposes of this subsection and subsection (g), "civil taxing unit" includes a city or town that existed on January 1 of the year in which the distribution is made. The county auditor shall distribute an amount received under subsection (d) to the civil taxing units in the same manner as the certified distribution is distributed and not later than thirty (30) days after the county auditor receives the amount. However, the county auditor shall distribute an amount to a civil taxing unit that does not have a property tax levy in the year of the distribution based on an estimate certified by the department of local government finance. The department of local government finance shall compute and certify an amount for a civil taxing unit that does not have a property tax levy equal to the amount to be distributed multiplied by a fraction in which:
        (1) the numerator of the fraction equals an estimate of the budget of that civil taxing unit for:
            (A) that calendar year, if the civil taxing unit has adopted a resolution indicating that the civil taxing unit will not adopt a property tax in the ensuing calendar year; or
            (B) the ensuing calendar year, if clause (A) does not apply; and
        (2) the denominator of the fraction equals the aggregate attributed levies (as defined in IC 6-3.5-1.1-15) section 15 of this chapter) of all civil taxing units of that county for that calendar year plus the sum of the budgets estimated under subdivision (1) for each civil taxing unit that does not have a property tax levy in the year of the distribution.
    (g) The civil taxing units may use the amounts received under subsection (f) for any item for which the particular civil taxing unit's certified shares may be used. The amount distributed shall not be included in the computation under IC 6-1.1-18.5-3.
    SECTION 57. IC 6-3.5-1.1-10, AS AMENDED BY P.L.135-2001, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) One-half (1/2) of each adopting county's certified distribution for a calendar year shall be distributed from its account established under section 8 of this chapter to the appropriate county treasurer on May 1 and the other one-half (1/2) on November 1 of that calendar year.
    (b) Except for:
        (1) revenue that must be used to pay the costs of operating a jail and juvenile detention center under section 2.5(d) of this chapter;
        (2) revenue that must be used to pay the costs of:
            (A) financing, constructing, acquiring, improving, renovating, or equipping facilities and buildings;
            (B) debt service on bonds; or
            (C) lease rentals;
        under section 2.8 of this chapter;
        (3)
revenue that must be used to pay the costs of construction, improvement, or renovation, or remodeling of a jail and related buildings and parking structures under section 2.7 or 2.9 of this chapter; or
        (3) (4) 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
        (5) revenue that must be used to pay the costs of constructing, acquiring, improving, renovating, or equipping a county courthouse under section 3.6 of this chapter;

distributions made to a county treasurer under subsection (a) shall be treated as though they were property taxes that were due and payable during that same calendar year. The certified distribution shall be distributed and used by the taxing units and school corporations as provided in sections 11 through 15 of this chapter.
    (c) All distributions from an account established under section 8 of this chapter shall be made by warrants issued by the auditor of the state to the treasurer of the state ordering the appropriate payments.
    SECTION 58. IC 6-3.5-1.1-11, AS AMENDED BY P.L.135-2001, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. (a) Except for:
        (1) revenue that must be used to pay the costs of operating a jail and juvenile detention center under section 2.5(d) of this chapter;
        (2) revenue that must be used to pay the costs of:
            (A) financing, constructing, acquiring, improving, renovating, or equipping facilities and buildings;
            (B) debt service on bonds; or
            (C) lease rentals;
        under section 2.8 of this chapter;
        (3)
revenue that must be used to pay the costs of construction, improvement, or renovation, or remodeling of a jail and related buildings and parking structures under section 2.7 or 2.9 of this chapter; or
        (3) (4) 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
        (5) revenue that must be used to pay the costs of constructing, acquiring, improving, renovating, or equipping a county courthouse under section 3.6 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.
    SECTION 59. IC 6-3.5-1.1-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 21. Before February 1 July 2 of each year, the department shall submit a report to each county treasurer auditor indicating the balance in the county's adjusted gross income tax account as of the end of the preceding year. the following:
        (1) The balance in the county's adjusted gross income tax account as of the end of the preceding year.
        (2) The required six (6) month balance, or three (3) month balance if the county has adopted an ordinance under section 9.5 of this chapter before the end of the preceding year.

    SECTION 60. IC 6-3.5-1.1-21.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 21.1. (a) If, after receiving a

recommendation from the budget agency, the department determines that a sufficient balance existed at the end of the preceding year in excess of the required six (6) or three (3) month balance, the department may make a supplemental distribution to a county from the county's adjusted gross income tax account.
    (b) A supplemental distribution described in subsection (a) must be:
        (1) made in January of the ensuing calendar year; and
        (2) allocated and used in the same manner as certified distributions.
    (c) A determination under this section must be made before July 2.

    SECTION 61. IC 6-3.5-6-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17. (a) Revenue Except as provided in section 2.5 of this chapter, revenue derived from the imposition of the county option income tax shall, in the manner prescribed by this section, be distributed to the county that imposed it. The amount that is to be distributed to a county during an ensuing calendar year equals the amount of county option income tax revenue that the department, after reviewing the recommendation of the state budget agency, estimates will be received from that county during the twelve (12) month period beginning July 1 of the immediately preceding calendar year and ending June 30 of the ensuing calendar year.
    (b) Before June 16 of each calendar year, the department, after reviewing the recommendation of the state budget agency, shall estimate and certify to the county auditor of each adopting county the amount of county option income tax revenue that will be collected from that county during the twelve (12) month period beginning July 1 of that calendar year and ending June 30 of the immediately succeeding calendar year. The amount certified is the county's "certified distribution" for the immediately succeeding calendar year. The amount certified may be adjusted under subsection (c) or (d).
    (c) The department may certify to an adopting county an amount that is greater than the estimated twelve (12) month revenue collection if the department, after reviewing the recommendation of the state budget agency, determines that there will be a greater amount of revenue available for distribution from the county's account established under section 16 of this chapter.
    (d) The department may certify an amount less than the estimated twelve (12) month revenue collection if the department, after reviewing the recommendation of the state budget agency, determines that a part

of those collections needs to be distributed during the current calendar year so that the county will receive its full certified distribution for the current calendar year.
    (e) One-twelfth (1/12) of each adopting county's certified distribution for a calendar year shall be distributed from its account established under section 16 of this chapter to the appropriate county treasurer on the first day of each month of that calendar year.
    (f) Except as provided in section 2.5 of this chapter, upon receipt, each monthly payment of a county's certified distribution shall be allocated among, distributed to, and used by the civil taxing units of the county as provided in sections 18 and 19 of this chapter.
    (g) All distributions from an account established under section 16 of this chapter shall be made by warrants issued by the auditor of state to the treasurer of the state ordering the appropriate payments.
    SECTION 62. IC 6-3.5-6-17.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17.2. Before July 2 of each year, the department shall submit a report to each county auditor indicating the following:
        (1) The balance in the county's special account as of the end of the preceding year.
        (2) The required six (6) month balance or three (3) month balance, if the county has adopted an ordinance under:
            (A) section 17.4 of this chapter;
            (B) section 17.5 of this chapter; or
            (C) section 17.6 of this chapter;
        before the end of the preceding year.

    SECTION 63. IC 6-3.5-6-17.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17.3. (a) If, after receiving a recommendation from the budget agency, the department determines that a sufficient balance existed at the end of the preceding year in excess of the required six (6) or three (3) month balance, the department may make a supplemental distribution to a county from the county's special account.
    (b) A supplemental distribution described in subsection (a) must be:
        (1) made in January of the ensuing calendar year; and
        (2) allocated and used in the same manner as certified distributions.
    (c) A determination under this section must be made before July 2.


    SECTION 64. IC 6-3.5-6-17.4, AS AMENDED BY SEA 399-2002, SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17.4. (a) This section applies only to a county having a population of more than thirty-six thousand seventy-five (36,075) but less than thirty-seven thousand (37,000).
    (b) The county income tax council of a county may adopt an ordinance to reduce the required six (6) month balance of that county's special account to a three (3) month balance for that county.
    (c) To reduce the balance a county income tax council must adopt an ordinance. The ordinance must substantially state the following:
    "The ___________ County Income Tax Council elects to reduce the required county income tax special account balance from a six (6) month balance to a three (3) month balance within ninety (90) days after the adoption of this ordinance.".
    (d) Not more than thirty (30) days after adopting an ordinance under subsection (c), the county income tax council shall deliver a copy of the ordinance to the budget agency.
    (e) Not later than:
        (1) sixty (60) days after a county income tax council adopts an ordinance under subsection (c); and
        (2) December 31; of each year;
the budget agency shall make the calculation described in subsection (f). Not later than ninety (90) days after the ordinance is adopted, the budget agency shall make an initial distribution to the county auditor of the amount determined under subsection (f) STEP FOUR. Subsequent distributions needed to distribute any amount in the county income tax special account that exceeds a three (3) month balance, as determined under subsection (f) STEP FOUR, shall be made in January of the ensuing calendar year after the calculation is made.
    (f) 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.
        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.
    (g) The county auditor shall distribute an amount received under subsection (e) to the civil taxing units in the same manner as the certified distribution is distributed and not later than thirty (30) days after the county auditor receives the amount.
    (h) The civil taxing units may use the amounts received under subsection (g) for any item for which the particular civil taxing unit's certified distribution may be used.
    SECTION 65. IC 6-3.5-6-17.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17.5. (a) This section does not apply to a county containing a consolidated city.
    (b) The county income tax council of any county may adopt an ordinance to reduce the required six (6) month balance of that county's special account to a three (3) month balance for that county on January 1 of a year.
    (c) To reduce the balance a county income tax council must, after January 1 but before April 1 of a year, adopt an ordinance. The ordinance must substantially state the following:
    "The _____________ County Income Tax Council elects to reduce the required county income tax special account balance from a six (6) month balance to a three (3) month balance.".
    (d) On or before December 31 , 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.
        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.
    (e) The amount determined in STEP FOUR of subsection (d) shall be distributed to the county auditor in January of the ensuing calendar year.
    (f) The county auditor shall distribute the amount received under subsection (e) to the civil taxing units in the same manner as the certified distribution is distributed and not later than thirty (30) days after the county auditor receives the amount.
    (g) The civil taxing units may use the amounts received under subsection (f) as follows:
        (1) For the later of 1995 or the first calendar year in which the county adopts an ordinance under subsection (c) and:
            (A) for each civil taxing unit that is a county, city, or town, for the purposes authorized under IC 36-9-14.5-2 or IC 36-9-15.5-2 (whichever applies and regardless of whether the civil taxing unit has established a cumulative capital development fund under IC 36-9-14.5 or IC 36-9-15.5); and
            (B) for each civil taxing unit that is a township or a special taxing district, for any item for which the civil taxing unit may issue a general obligation bond.
        (2) For each year after the year to which subdivision (1) applies and for all civil taxing units, for any item for which the particular civil taxing unit's certified distribution may be used.
    SECTION 66. IC 6-3.5-6-17.6, AS AMENDED BY P.L.283-2001, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17.6. (a) This section applies to a county containing a consolidated city.
    (b) On or before July 15 2 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:
            (A) the property taxes imposed by the county in 1999 for the county's welfare administration fund; plus
            (B) after December 31, 2002, the greater of zero (0) or the difference between:
                (i) the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after

2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3; minus
                (ii) the current uninsured parents program property tax levy imposed by the county; 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:
            (A) the property taxes imposed by the county in 1999 for the county's welfare administration fund; plus
            (B) after December 31, 2002, the greater of zero (0) or the difference between:
                (i) the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the state statewide average assessed value growth quotient described in IC 12-16-14-3; minus
                (ii) the current uninsured parents program property tax levy imposed by the county.
    SECTION 67. IC 6-3.5-6-26 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 26. (a) A pledge of county option income tax revenues under this chapter is enforceable in accordance with IC 5-1-14.
    (b) With respect to obligations for which a pledge has been made under this chapter, the general assembly covenants with the county and the purchasers or owners of those obligations that this chapter will not be repealed or amended in any manner that will adversely affect the tax collected under this chapter as long as the principal of or interest on those obligations is unpaid.

    SECTION 68. IC 6-3.5-7-5, AS AMENDED BY P.L.135-2001, SECTION 6, AS AMENDED BY P.L.185-2001, SECTION 3, AND AS AMENDED BY P.L.291-2001, SECTION 179, IS AMENDED AND CORRECTED 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), (j), and (k), 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), (i), or (j), or (k), (l), (m), (n), or (o), 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 (g), 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). a county having a

population of more than one hundred forty-eight thousand (148,000) but less than one hundred seventy thousand (170,000). 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), a county having a population of more than forty-one thousand (41,000) but less than forty-three thousand (43,000), 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 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), a county having a population of more than thirteen thousand five hundred (13,500) but less than fourteen thousand (14,000), 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 having a population of more than sixty-eight thousand (68,000) but less than seventy-three thousand (73,000), a county having a population of more than seventy-one thousand (71,000) but less than seventy-one thousand four hundred (71,400), 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 five-tenths percent (1.5%).
    (j) This subsection applies to a county having a population of more than twenty-seven thousand (27,000) but less than twenty-seven thousand three hundred (27,300). In addition to the rates permitted under subsection (b):
        (1) the county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and


        (2) the sum of the county economic development income tax rate and the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%);
if the county council makes a determination to impose rates under this subsection and section 22.5 of this chapter.

    (k) This subsection applies to a county having a population of more than twenty-seven thousand (27,000) but less than twenty-seven thousand three hundred (27,300). a county having a population of more than twenty-seven thousand four hundred (27,400) but less than twenty-seven thousand five hundred (27,500). In addition to the rates permitted under subsection (b):
        (1) the county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and
        (2) the sum of the county economic development income tax rate and the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%);
if the county council makes a determination to impose rates under this subsection and section 22.5 of this chapter.

    (l) For a county having a population of more than twenty-nine thousand (29,000) but less than thirty thousand (30,000), 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 five-tenths percent (1.5%).
    (m) For:

         (1) a county having a population of more than one hundred eighty-two thousand seven hundred ninety (182,790) but less than two hundred thousand (200,000); or
        (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900);
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 five-tenths percent (1.5%).
    (n) For a county having a population of more than six thousand (6,000) but less than eight thousand (8,000), 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 five-tenths percent (1.5%).
    (o) This subsection applies to a county having a population of more than thirty-nine thousand (39,000) but less than thirty-nine

thousand six hundred (39,600). In addition to the rates permitted under subsection (b):
        (1) the county economic development income tax may be imposed at a rate of twenty-five hundredths percent (0.25%); and
        (2) the sum of the county economic development income tax rate and:
            (A) the county adjusted gross income tax rate that are in effect on January 1 of a year may not exceed one and five-tenths percent (1.5%); or
            (B) the county option income tax rate that are in effect on January 1 of a year may not exceed one and twenty-five hundredths percent (1.25%);
if the county council makes a determination to impose rates under this subsection and section 24 of this chapter.
    SECTION 69. IC 6-3.5-7-10.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 10.5. Before July 2 of each year, the department shall submit a report to each county auditor indicating the following:
        (1) The balance in the county's special account as of the end of the preceding year.
        (2) The required six (6) month balance as of the end of the preceding year.

    SECTION 70. IC 6-3.5-7-17.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17.3. (a) If, after receiving a recommendation from the budget agency, the department determines that a sufficient balance existed at the end of the preceding year that exceeded the required six (6) month balance as of the end of the preceding year, the department may make a supplemental distribution to a county from the county's special account.
    (b) A supplemental distribution described in subsection (a) must be:
        (1) made in January of the ensuing calendar year; and
        (2) allocated and used in the same manner as certified distributions.
    (c) A determination under this section must be made before July 2.

    SECTION 71. IC 6-3.5-7-24 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE

UPON PASSAGE]: Sec. 24. (a) This section applies to a county having a population of more than thirty-nine thousand (39,000) but less than thirty-nine thousand six hundred (39,600).
    (b) In addition to the rates permitted by section 5 of this chapter, the county council may impose the county economic development income tax at a rate of twenty-five hundredths percent (0.25%) on the adjusted gross income of county taxpayers if the county council makes the finding and determination set forth in subsection (c).
    (c) In order to impose the county economic development income tax as provided in this section, the county council must adopt an ordinance finding and determining that revenues from the county economic development income tax are needed to pay the costs of financing, constructing, acquiring, renovating, and equipping a county jail including the repayment of bonds issued, or leases entered into, for constructing, acquiring, renovating, and equipping a county jail.
    (d) If the county council makes a determination under subsection (c), the county council may adopt a tax rate under subsection (b). The tax rate may not be imposed at a rate or for a time greater than is necessary to pay the costs of financing, constructing, acquiring, renovating, and equipping a county jail.
    (e) The county treasurer shall establish a county jail revenue fund to be used only for the purposes described in this section. County economic development income tax revenues derived from the tax rate imposed under this section shall be deposited in the county jail revenue fund before making a certified distribution under section 11 of this chapter.
    (f) County economic development income tax revenues derived from the tax rate imposed under this section:
        (1) may only be used for the purposes described in this section;
        (2) may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy limit under IC 6-1.1-18.5; and
        (3) may be pledged to the repayment of bonds issued, or leases entered into, for the purposes described in subsection (c).

    SECTION 72. IC 6-8.1-3-7.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7.1. (a) "Fiscal officer" has the meaning set forth in IC 36-1-2-7.
    (b) The department shall enter into an agreement with the fiscal

officer of an entity that has adopted an innkeeper's tax, a food and beverage tax, or an admissions tax under IC 6-9 to furnish the fiscal officer annually with:
        (1) the name of each business collecting the taxes listed in this subsection; and
        (2) the amount of money collected from each business.
    (c) The agreement must provide that the department must provide the information in an electronic format that the fiscal officer can use, as well as a paper copy.
    (d) The agreement must include a provision that, unless in accordance with a judicial order, the fiscal officer, employees of the fiscal officer, former employees of the fiscal officer, counsel of the fiscal officer, agents of the fiscal officer, or any other person may not divulge the names of the businesses, the amount of taxes paid by the businesses, or any other information disclosed to the fiscal officer by the department.

    SECTION 73. IC 6-8.1-9-14 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) The department shall establish, administer, and make available a centralized debt collection program for use by state agencies to collect delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to or being collected by state agencies. The department's collection facilities shall be available for use by other state agencies only when resources are available to the department.
    (b) The commissioner shall prescribe the appropriate form and manner in which collection information is to be submitted to the department.
    (c) The debt must be delinquent and not subject to litigation, claim, appeal, or review under the appropriate remedies of a state agency.
    (d) The department has the authority to collect for the state or claimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts, charges, fees, loans, taxes, or other indebtedness due the state or claimant agency that has a formal agreement with the department for central debt collection.
    (e) The formal agreement must provide that the information provided to the department be sufficient to establish the obligation in court and to render the agreement as a legal judgment on behalf of the state. After transferring a file for collection to the department for collection, the claimant agency shall terminate all collection procedures and be available to provide assistance to the

department. Upon receipt of a file for collection, the department shall comply with all applicable state and federal laws governing collection of the debt.
    (f) The department may use a claimant agency's statutory authority to collect the claimant agency's delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to the claimant agency.
    (g) The department's right to credit against taxes due may not be impaired by any right granted the department or other state agency under this section.
    (h) The department of state revenue may charge the claimant agency a fee not to exceed fifteen percent (15%) of any funds the department collects for a claimant agency. Notwithstanding any law concerning delinquent accounts, charges, fees, loans, taxes, or other indebtedness, the fifteen percent (15%) fee shall be added to the amount due to the state or claimant agency when the collection is made.
    (i) Fees collected under subsection (h) shall be retained by the department after the debt is collected for the claimant agency and are appropriated to the department for use by the department in administering this section.
    (j) The department shall transfer any funds collected from a debtor to the claimant agency within thirty (30) days after the end of the month in which the funds were collected.
    (k) When a claimant agency requests collection by the department, the claimant agency shall provide the department with:
        (1) the full name;
        (2) the Social Security number or federal identification number, or both;
        (3) the last known mailing address; and
        (4) additional information that the department may request;
concerning the debtor.
    (l) The department shall establish a minimum amount that the department will attempt to collect for the claimant agency.

    (m) The commissioner shall report, not later than March 1 for the previous calendar year, to the governor, the budget director, and the legislative council concerning the implementation of the centralized debt collection program, the number of debts, the dollar amounts of debts collected, and an estimate of the future
costs and benefits that may be associated with the collection program.
    SECTION 74. IC 6-9-2.5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) The county council may levy tax on every person engaged in the business of renting or furnishing, for periods of less than thirty (30) days, any room or rooms, lodgings, or accommodations in any commercial hotel, motel, inn, tourist camp, or tourist cabin located in a county described in section 1 of this chapter. Such tax shall not exceed the rate of five six percent (5%) (6%) on the gross income derived from lodging income only and shall be in addition to the state gross retail tax imposed on such persons by IC 6-2.5.
    (b) The county fiscal body may adopt an ordinance to require that the tax be reported on forms approved by the county treasurer and that the tax shall be paid monthly to the county treasurer. If such an ordinance is adopted, the tax shall be paid to the county treasurer not more than twenty (20) days after the end of the month the tax is collected. If such an ordinance is not adopted, the tax shall be imposed, paid, and collected in exactly the same manner as the state gross retail tax is imposed, paid, and collected pursuant to IC 6-2.5.
    (c) All of the provisions of IC 6-2.5 relating to rights, duties, liabilities, procedures, penalties, definitions, exemptions, and administration shall be applicable to the imposition and administration of the tax imposed by this section except to the extent such provisions are in conflict or inconsistent with the specific provisions of this chapter or the requirements of the county treasurer. Specifically and not in limitation of the foregoing sentence, the terms "person" and "gross income" shall have the same meaning in this section as they have in IC 6-2.5. If the tax is paid to the department of state revenue, the returns to be filed for the payment of the tax under this section may be either a separate return or may be combined with the return filed for the payment of the state gross retail tax as the department of state revenue may, by rule or regulation, determine.
    (d) If the tax is paid to the department of state revenue, the amounts received from such tax shall be paid quarterly by the treasurer of state to the county treasurer upon warrants issued by the auditor of state.
    (e) The tax imposed under subsection (a) does not apply to the renting or furnishing of rooms, lodgings, or accommodations to a person for a period of thirty (30) days or more.
    SECTION 75. IC 6-9-2.5-7, AS AMENDED BY P.L.208-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) The county treasurer shall establish a convention and visitor promotion fund.
    (b) The county treasurer shall deposit the following in the

convention and visitor promotion fund:
        (1) Before January 1, 2000:
            (A) All of the money received under section 6 of this chapter, if the rate set under section 6 of this chapter is not greater than two percent (2%).
            (B) The amount of money received under section 6 of this chapter that is generated by a two percent (2%) rate, if the rate set under section 6 of this chapter is at least two percent (2%).
        (2) After December 31, 1999, and before January 1, 2003, the amount of money received under section 6 of this chapter that is generated by a two percent (2%) rate.
         (3) After December 31, 2002, the amount of money received under section 6 of this chapter that is generated by a two and one-half percent (2.5%) rate.
    (c) Money in this fund shall be expended only as provided in this chapter.
    (d) The commission may transfer money in the convention and visitor promotion fund to any Indiana nonprofit corporation for the purpose of promotion and encouragement in the county of conventions, trade shows, visitors, or special events. The commission may transfer money under this section only after approving the transfer. Transfers shall be made quarterly or less frequently under this section.
    SECTION 76. IC 6-9-2.5-7.5, AS AMENDED BY P.L.208-1999, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7.5. (a) The county treasurer shall establish a tourism capital improvement fund.
    (b) The county treasurer shall deposit money in the tourism capital improvement fund as follows:
        (1) Before January 1, 2000, if the rate set under section 6 of this chapter is greater than two percent (2%), the county treasurer shall deposit in the tourism capital improvement fund an amount equal to the money received under section 6 of this chapter minus the amount generated by a two percent (2%) rate.
        (2) After December 31, 1999, and before January 1, 2006, 2003, the county treasurer shall deposit in the tourism capital improvement fund the amount of money received under section 6 of this chapter that is generated by a one percent (1%) rate.
        (3) After December 31, 2002, and before January 1, 2006, the county treasurer shall deposit in the tourism capital improvement fund the amount of money received under section 6 of this chapter that is generated by a one and one-half percent (1.5%) rate.


        (4) After December 31, 2005, the county treasurer shall deposit in the tourism capital improvement fund the amount of money received under section 6 of this chapter that is generated by a three and one-half percent (3%) (3.5%) rate.
    (c) The commission may transfer money in the tourism capital improvement fund to:
        (1) the county government, a city government, or a separate body corporate and politic in a county described in section 1 of this chapter; or
        (2) any Indiana nonprofit corporation;
for the purpose of making capital improvements in the county that promote conventions, tourism, or recreation. The commission may transfer money under this section only after approving the transfer. Transfers shall be made quarterly or less frequently under this section.
    SECTION 77. IC 6-9-7-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. (a) The county treasurer shall establish an innkeeper's tax fund. The treasurer shall deposit in that fund all money received under section 6 of this chapter.
    (b) Money in the innkeeper's tax fund shall be expended in the following order:
        (1) Through July 1999, not more than the revenue needed to service bonds issued under IC 36-10-3-40 through IC 36-10-3-45 and outstanding on January 1, 1993, may be used to service bonds. The county auditor shall make a semiannual distribution, at the same time property tax revenue is distributed, to a park and recreation district that has issued bonds payable from a county innkeeper's tax. Each semiannual distribution must be equal to one-half (1/2) of the annual principal and interest obligations on the bonds. Money received by a park and recreation district under this subdivision shall be deposited in a special fund to be used to service the bonds. During August 1999 the money that had been set aside to cover bond payments that remains after the bonds have been retired plus sixty percent (60%) of the tax revenue during August 1999 through December 1999 shall be distributed to the county treasurer to be used by the county park board, subject to appropriation by the county fiscal body.
        (2) To the commission for its general use in paying operating expenses and to carry out the purposes set forth in section 3(a)(6) of this chapter. However, the amount that may be distributed under this subdivision during any particular year may not exceed the proceeds derived from an innkeeper's tax of two percent (2%) through December 1999 and fifty percent (50%) of the tax

revenue beginning January 2000 and continuing through December 2004. 2014.
        (3) For the period beginning January 2000 July 1, 2002, through December 2004, 2014, fifty percent (50%) of the revenue to the county treasurer to be credited by the treasurer to a special account. The county treasurer shall distribute money in the special account as follows:
            (A) Seventy-five percent (75%) of the money in the special account shall be distributed to the department of natural resources
for the development of projects in or near the state park on the county's largest river, including its tributaries. (referred to as a qualified project). Upon the submission of a written claim by the department of natural resources requesting funds for a qualified project and to the extent there is money in the special account, the county council shall appropriate and the county auditor shall issue warrants to pay the claim.
            (B) Twenty-five percent (25%) of the money in the special account shall be distributed to a community development corporation that serves a metropolitan area in the county that includes:
                (i) a city having a population of more than fifty-five thousand (55,000) but less than fifty-nine thousand (59,000); and
                (ii) a city having a population of more than twenty-eight thousand seven hundred (28,700) but less than twenty-nine thousand (29,000);
            for the community development corporation's use in tourism, recreation, and economic development activities. For the period beginning July 1, 2002, and continuing through December 2006, the community development corporation shall provide not less than forty percent (40%) of the money received from the special account under this clause as a grant to a nonprofit corporation that leases land in the state park described in this subdivision for the nonprofit corporation's use in noncapital projects in the state park.
        
Money in the special account may not be used for any other purpose. The money credited to the account that has not been used for qualified projects as specified in this subdivision by January 1, 2005, 2015, shall be transferred to the commission to be used to make grants as provided in subsection (c)(2).


    (c) Money in the innkeeper's tax fund subject to appropriation by the county council shall be allocated and distributed after December 2004 2014 as follows:
        (1) Fifty percent (50%) of the revenue to the commission for the commission's general use in paying operating expenses and to carry out the purposes set forth in section 3(a)(6) of this chapter.
        (2) The remainder to the commission to be used solely to make grants for the development of recreation and tourism projects. The commission shall establish and make public the criteria that will be used in analyzing and awarding grants. At least ten percent (10%) but not more than fifteen percent (15%) of the grants may be awarded for noncapital projects. Grants may be made only to the following entities upon application by the executive of the entity:
            (A) The county for deposit in a special account.
            (B) The most populated city in the county for deposit in a special account.
            (C) The second most populated city in the county for deposit in a special account.
            (D) The Tippecanoe County Wabash River parkway commission, but only so long as the interlocal agreement among the political subdivisions listed in clauses (A) through (C) is in effect. Money received by the parkway commission shall be segregated in a special account.
    (d) Money credited to special accounts under subsection (c)(2) shall be used only for recreation or tourism projects, or both.
    SECTION 78. IC 8-16-3.1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 4. (a) The executive of any eligible county may provide a major bridge fund in compliance with IC 6-1.1-41 to make available funding for the construction of major bridges.
    (b) The executive of any eligible county may levy a tax in compliance with IC 6-1.1-41 not to exceed ten three and thirty-three hundredths cents ($0.10) ($0.0333) on each one hundred dollars ($100) assessed valuation of all taxable personal and real property within the county to provide for the major bridge fund.
    SECTION 79. IC 12-7-2-128.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 128.5. "Medical institution", for purposes of IC 12-15-8.5, has the meaning set forth in IC 12-15-8.5-1.
    SECTION 80. IC 12-15-2-17, AS AMENDED BY P.L.272-1999,

SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. (a) Except as provided in subsection subsections (b) and (d), if an applicant for or a recipient of Medicaid:
        (1) establishes one (1) irrevocable trust that has a value of not more than ten thousand dollars ($10,000), exclusive of interest, and is established for the sole purpose of providing money for the burial of the applicant or recipient;
        (2) enters into an irrevocable prepaid funeral agreement having a value of not more than ten thousand dollars ($10,000); or
        (3) owns a life insurance policy with a face value of not more than ten thousand dollars ($10,000) and with respect to which provision is made to pay not more than ten thousand dollars ($10,000) toward the applicant's or recipient's funeral expenses;
the value of the trust, prepaid funeral agreement, or life insurance policy may not be considered as a resource in determining the applicant's or recipient's eligibility for Medicaid.
    (b) Subject to subsection (d), if an applicant for or a recipient of Medicaid establishes an irrevocable trust or escrow under IC 30-2-13, the entire value of the trust or escrow may not be considered as a resource in determining the applicant's or recipient's eligibility for Medicaid.
    (c) If an applicant for or a recipient of Medicaid owns resources described in subsection (a) and the total value of those resources is more than ten thousand dollars ($10,000), the value of those resources that is more than ten thousand dollars ($10,000) may be considered as a resource in determining the applicant's or recipient's eligibility for Medicaid.
     (d) In order for a trust, an escrow, a life insurance policy, or a prepaid funeral agreement to be exempt as a resource in determining an applicant's or a recipient's eligibility for Medicaid under this section, the applicant or recipient must designate the office or the applicant's or recipient's estate to receive any remaining amounts after delivery of all services and merchandise under the contract as reimbursement for Medicaid assistance provided to the applicant or recipient after fifty-five (55) years of age. The office may receive funds under this subsection only to the extent permitted by 42 U.S.C. 1396p. The computation of remaining amounts shall be made as of the date of delivery of services and merchandise under the contract and must be the excess, if any, derived from:
        (1) growth in principal;
        (2) accumulation and reinvestment of dividends;


        (3) accumulation and reinvestment of interest; and
        (4) accumulation and reinvestment of distributions;
on the applicant's or recipient's trust, escrow, life insurance policy, or prepaid funeral agreement over and above the seller's current retail price of all services, merchandise, and cash advance items set forth in the applicant's or recipient's contract.

    SECTION 81. IC 12-15-8.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 8.5. Liens on Real Property of Medicaid Recipients
    Sec. 1. As used in this chapter, "medical institution" means any of the following:
        (1) A hospital.
        (2) A nursing facility.
        (3) An intermediate care facility for the mentally retarded.
    Sec. 2. Subject to section 10 of this chapter, when the office, in accordance with 42 U.S.C. 1396p, determines that a Medicaid recipient who resides in a medical institution cannot reasonably be expected to be discharged from a medical institution and return home, the office may obtain a lien on the Medicaid recipient's real property for the cost of all Medicaid expenditures made on behalf of the recipient.
    Sec. 3. The office may not obtain a lien under this chapter if any of the following persons lawfully reside in the home of the Medicaid recipient who resides in the medical institution:
        (1) The Medicaid recipient's spouse.
        (2) The Medicaid recipient's child who is:
            (A) less than twenty-one (21) years of age; or
            (B) disabled as defined by the federal Supplemental Security Income program.

         (3) The Medicaid recipient's sibling who has an ownership interest in the home and who has lived in the home continuously beginning at least twelve (12) months before the recipient was admitted to the medical institution.
         (4) The Medicaid recipient's parent.
        (5) An individual, other than a paid caregiver, who:
            (A) was continuously residing in the recipient's home for a period of at least two (2) years immediately prior to the date of the recipient's admission to the nursing facility; and
            (B) establishes to the satisfaction of the office that the person provided care to the recipient enabling the recipient

to reside in the recipient's home rather than in a medical institution.
     Sec. 4. Before obtaining a lien on a Medicaid recipient's interest in real property under this chapter, the office shall notify in writing the Medicaid recipient and the Medicaid recipient's authorized representative, if applicable, of the following:
        (1) The office's determination that the Medicaid recipient cannot reasonably be expected to be discharged from the medical institution.
        (2) The office's intent to impose a lien on the Medicaid recipient's home.
        (3) The Medicaid recipient's right to a hearing under IC 12-15-28 upon the Medicaid recipient's request regarding whether the requirements for the imposition of a lien are satisfied. A lien may not be filed for at least thirty (30) days after the notice is given and until the hearing process is completed if a hearing is requested.

     Sec. 5. (a) The office shall obtain a lien under this chapter by filing a notice of lien with the recorder of the county in which the real property subject to the lien is located. The notice shall be filed prior to the recipient's death and shall include the following:
        (1) The name and place of residence of the individual against whose property the lien is asserted.
        (2) A legal description of the real property subject to the lien.

     (b) Upon the office's request, the county auditor or assessor of a county shall furnish the office with the legal description of any property in the county registered to the recipient.
     (c) The office shall file one (1) copy of the notice of lien with the county office of family and children in the county in which the real property is located. The county office of family and children shall retain a copy of the notice with the county office's records.
    (d) The office shall provide one (1) copy of the notice of lien to the recipient or the Medicaid recipient's authorized representative, if applicable, whose real property is affected.

     Sec. 6. (a) Beginning on the date on which a notice of lien is recorded in the office of the county recorder under section 5 of this chapter, the notice of lien:
         (1) constitutes due notice of a lien against the Medicaid recipient's real property for any amount then recoverable and any amount that becomes recoverable under this article; and
         (2) gives a specific lien in favor of the office on the Medicaid recipient's interest in the real property.


    (b) The lien continues from the date of filing the lien until the lien:
        (1) is satisfied;
        (2) is released; or
        (3) expires.

     Sec. 7. The office may bring proceedings in foreclosure on a lien arising under this chapter:
         (1) during the lifetime of the Medicaid recipient if the Medicaid recipient or a person acting on behalf of the Medicaid recipient sells the property; or
         (2) upon the death of the Medicaid recipient.
The lien automatically expires unless the office commences a foreclosure action not later than nine (9) months after the Medicaid recipient's death.
     Sec. 8. (a) The office may not enforce a lien under this chapter if the Medicaid recipient is survived by any of the following:
         (1) The recipient's spouse.
        (2) The recipient's child who is:
            (A) less than twenty-one (21) years of age; or
            (B) disabled as defined by the federal Supplemental Security Income program.
        (3) The recipient's parent.
    (b) The office may not enforce a lien under this chapter as long as any of the following individuals reside in the home:
        (1) The recipient's child of any age if the child:
            (A) resided in the home for at least twenty-four (24) months before the Medicaid recipient was admitted to the medical institution;
            (B) provided care to the Medicaid recipient that delayed the Medicaid recipient's admission to the medical institution; and
            (C) has resided in the home on a continuous basis since the date of the individual's admission to the medical institution.
        (2) The Medicaid recipient's sibling who has an ownership interest in the home and who has lived in the home continuously beginning at least twelve (12) months before the Medicaid recipient was admitted to the medical institution.
    Sec. 9. (a) The office shall release a lien imposed under this chapter within ten (10) business days after the
county office of family and children receives notice that the Medicaid recipient:
        (1) is no longer living in the medical institution; and
        (2) is living in the home.
    (b) The county recorder shall waive the filing fee for the filing of a release made under this section.

     (c) If the property subject to the lien is sold, the office shall release its lien at the closing, and the lien shall attach to the net proceeds of the sale.
    Sec. 10. (a) An exemption from the lien in the amount of one hundred twenty-five thousand dollars ($125,000) applies to the:
        (1) interest, in the case of a single interest; or
        (2) combined total interests, in the case of multiple interests;
of the Medicaid recipient in all property subject to the lien.
    (b) This section expires January 1, 2008.
    Sec. 11. (a) As used in this section "financial institution" means a bank, a trust company, a corporate fiduciary, a savings association, a credit union, a savings bank, a bank of discount and deposit, or an industrial loan and investment company organized or reorganized under the laws of this state, another state (as defined in IC 28-2-17-19), or United States law. The term also includes a consumer finance institution licensed to make supervised or regulated loans under IC 24-4.5.
    (b) A lien obtained under this chapter is subordinate to the security interest of a financial institution that loans money for any of the following purposes:
        (1) The payment of taxes, insurance, maintenance, and repairs in order to preserve and maintain the property.
        (2) Operating capital for the operation of a farm, a business, or an income producing real property.
        (3) The payment of medical, dental, or optical expenses incurred by the recipient, the recipient's spouse, a dependent parent, or a child who is less than twenty-one (21) years of age or who is disabled under criteria established by the federal Supplemental Security Income program.
        (4) The reasonable costs and expenses for the support, maintenance, comfort, and education of the recipient's spouse, a dependent parent, or a child who is less than twenty-one (21) years
of age or who is disabled under criteria established by the federal Supplemental Security Income program.
    SECTION 82. IC 12-15-9-0.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 0.5. (a) As used in this chapter, "estate" includes:
         (1) all real and personal property and other assets included within an individual's probate estate;
         (2) any interest in real property owned by the individual at the time of death that was conveyed to the individual's survivor through joint tenancy with right of survivorship, if the joint tenancy was created after June 30, 2002; and
        (3) any real or personal property conveyed through a nonprobate transfer.

     (b) As used in this chapter, "nonprobate transfer"means a valid transfer, effective at death, by a transferor:
        (1) whose last domicile was in Indiana; and
        (2) who immediately before death had the power, acting alone, to prevent transfer of the property by revocation or withdrawal and:
            (A) use the property for the benefit of the transferor; or
            (B) apply the property to discharge claims against the transferor's probate estate.
The term does not include transfer of a survivorship interest in a tenancy by the entireties real estate, transfer of a life insurance policy or annuity, or payment of the death proceeds
of a life insurance policy or annuity.
    SECTION 83. IC 12-15-9-0.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 0.6. (a) The office's claim against assets that are not included in the individual's probate estate may be enforced as set out in IC 32-4-1.1.
    (b) Enforcement of a claim against assets that are not included in an individual's probate estate must be commenced not more than nine (9) months after the decedent's death. This limit does not apply to any assets that were not reported to the local office of the division of family and children.

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

    SECTION 85. IC 12-15-9-0.8 IS ADDED TO THE INDIANA

CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE MAY 1, 2002]: Sec. 0.8. Any nonprobate assets:
        (1) that the office determined were exempt or unavailable
assets; or
        (2) that were transferred out of the probate estate;
before May 1, 2002, may not be included in the definition of estate under this chapter.

    SECTION 86. IC 12-15-28-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. An applicant for or a recipient of Medicaid may appeal to the office if one (1) of the following occurs:
        (1) An application or a request is not acted upon by the county office within a reasonable time after the application or request is filed.
        (2) The application is denied.
        (3) The applicant or recipient is dissatisfied with the action of the county office.
         (4) The recipient is dissatisfied with a determination made by the office under IC 12-15-8.5.
    SECTION 87. IC 13-21-3-12, AS AMENDED BY P.L.225-2001, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 12. Except as provided in section 14.5 of this chapter, the powers of a district include the following:
        (1) The power to develop and implement a district solid waste management plan under IC 13-21-5.
        (2) The power to impose district fees on the final disposal of solid waste within the district under IC 13-21-13.
        (3) The power to receive and disburse money, if the primary purpose of activities undertaken under this subdivision is to carry out the provisions of this article.
        (4) The power to sue and be sued.
        (5) The power to plan, design, construct, finance, manage, own, lease, operate, and maintain facilities for solid waste management.
        (6) The power to enter with any person into a contract or an agreement that is necessary or incidental to the management of solid waste. Contracts or agreements that may be entered into under this subdivision include those for the following:
            (A) The design, construction, operation, financing, ownership, or maintenance of facilities by the district or any other person.
            (B) The managing or disposal of solid waste.
            (C) The sale or other disposition of materials or products

generated by a facility.
        Notwithstanding any other statute, the maximum term of a contract or an agreement described in this subdivision may not exceed forty (40) years.
        (7) The power to enter into agreements for the leasing of facilities in accordance with IC 36-1-10 or IC 36-9-30.
        (8) The power to purchase, lease, or otherwise acquire real or personal property for the management or disposal of solid waste.
        (9) The power to sell or lease any facility or part of a facility to any person.
        (10) The power to make and contract for plans, surveys, studies, and investigations necessary for the management or disposal of solid waste.
        (11) The power to enter upon property to make surveys, soundings, borings, and examinations.
        (12) The power to:
            (A) accept gifts, grants, loans of money, other property, or services from any source, public or private; and
            (B) comply with the terms of the gift, grant, or loan.
        (13) The power to levy a tax within the district to pay costs of operation in connection with solid waste management, subject to the following:
            (A) Regular budget and tax levy procedures.
            (B) Section 16 of this chapter.
        However, except as provided in section sections 15 and 15.5 of this chapter, a property tax rate imposed under this article may not exceed eight and thirty-three hundredths cents ($0.0833) on each one hundred dollars ($100) of assessed valuation of property in the district.
        (14) The power to borrow in anticipation of taxes.
        (15) The power to hire the personnel necessary for the management or disposal of solid waste in accordance with an approved budget and to contract for professional services.
        (16) The power to otherwise do all things necessary for the:
            (A) reduction, management, and disposal of solid waste; and
            (B) recovery of waste products from the solid waste stream;
        if the primary purpose of activities undertaken under this subdivision is to carry out the provisions of this article.
        (17) The power to adopt resolutions that have the force of law. However, a resolution is not effective in a municipality unless the municipality adopts the language of the resolution by ordinance or resolution.


        (18) The power to do the following:
            (A) Implement a household hazardous waste and conditionally exempt small quantity generator (as described in 40 CFR 261.5(a)) collection and disposal project.
            (B) Apply for a household hazardous waste collection and disposal project grant under IC 13-20-20 and carry out all commitments contained in a grant application.
            (C) Establish and maintain a program of self-insurance for a household hazardous waste and conditionally exempt small quantity generator (as described in 40 CFR 261.5(a)) collection and disposal project, so that at the end of the district's fiscal year the unused and unencumbered balance of appropriated money reverts to the district's general fund only if the district's board specifically provides by resolution to discontinue the self-insurance fund.
            (D) Apply for a household hazardous waste project grant as described in IC 13-20-22-2 and carry out all commitments contained in a grant application.
        (19) The power to enter into an interlocal cooperation agreement under IC 36-1-7 to obtain:
            (A) fiscal;
            (B) administrative;
            (C) managerial; or
            (D) operational;
        services from a county or municipality.
        (20) The power to compensate advisory committee members for attending meetings at a rate determined by the board.
        (21) The power to reimburse board and advisory committee members for travel and related expenses at a rate determined by the board.
        (22) In a joint district, the power to pay a fee from district money to the counties in the district in which a final disposal facility is located.
        (23) The power to make grants or loans of:
            (A) money;
            (B) property; or
            (C) services;
        to public or private recycling programs, composting programs, or any other programs that reuse any component of the waste stream as a material component of another product, if the primary purpose of activities undertaken under this subdivision is to carry out the provisions of this article.
        (24) The power to establish by resolution a nonreverting capital fund. A district's board may appropriate money in the fund for:
            (A) equipping;
            (B) expanding;
            (C) modifying; or
            (D) remodeling;
        an existing facility. Expenditures from a capital fund established under this subdivision must further the goals and objectives contained in a district's solid waste management plan. Not more than five percent (5%) of the district's total annual budget for the year may be transferred to the capital fund that year. The balance in the capital fund may not exceed twenty-five percent (25%) of the district's total annual budget. If a district's board determines by resolution that a part of a capital fund will not be needed to further the goals and objectives contained in the district's solid waste management plan, that part of the capital fund may be transferred to the district's general fund, to be used to offset tipping fees, property tax revenues, or both tipping fees and property tax revenues.
        (25) The power to conduct promotional or educational programs that include giving awards and incentives that further the district's solid waste management plan.
        (26) The power to conduct educational programs under IC 13-20-17.5 to provide information to the public concerning:
            (A) the reuse and recycling of mercury in:
                (i) mercury commodities; and
                (ii) mercury-added products; and
            (B) collection programs available to the public for:
                (i) mercury commodities; and
                (ii) mercury-added products.
        (27) The power to implement mercury collection programs under IC 13-20-17.5 for the public and small businesses.
    SECTION 88. IC 13-21-3-15.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 15.5. (a) A district may appeal to the department of local government finance to have a property tax rate in excess of the rate permitted by section 12 of this chapter. The appeal may be granted if the district with respect to 2001 property taxes payable in 2002:
        (1) imposed the maximum property tax rate established under section 12 of this chapter; and
        (2) collected property tax revenue in an amount less than the

maximum permissible ad valorem property tax levy determined for the district under IC 6-1.1-18.5.
    (b) The procedure applicable to maximum levy appeals under IC 6-1.1-18.5 applies to an appeal under this section.
    (c) An additional levy granted under this section:
        (1) is not part of the total county tax levy (as defined in IC 6-1.1-21-2); and
        (2) may not exceed the rate calculated to result in a property tax levy equal to the maximum permissible ad valorem property tax levy determined for the district under IC 6-1.1-18.5.
    (d) The department of local government finance shall establish the tax rate if a higher tax rate is permitted.

    SECTION 89. IC 21-2-4-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. (a) The governing body of a school corporation may adopt a resolution to transfer after June 30, 2002, and before January 1, 2003, money that is:
        (1) not greater than the remainder of the amount described in IC 21-3-1.7-8 STEP TWO (C) minus the amount transferred under IC 21-2-11.5-5(a) and IC 21-2-15-13.1(a); and
        (2) on deposit in the school corporation's debt service fund;
to the school corporation's general fund for use for any general fund purpose.
    (b) The governing body of a school corporation may adopt a resolution to transfer after December 31, 2002, and before July 1, 2003, money that is:
        (1) not greater than the remainder of the amount described in IC 21-3-1.7-8 STEP TWO (D) minus the amount transferred under IC 21-2-11.5-5(b) and IC 21-2-15-13.1(b); and
        (2) on deposit in the school corporation's debt service fund;
to the school corporation's general fund for use for any general fund purpose.
    (c) This section expires July 1, 2003.

    SECTION 90. IC 21-2-11.5-5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 5. (a) The governing body of a school corporation may adopt a resolution to transfer after June 30, 2002, and before January 1, 2003, money that is:
        (1) not greater than the remainder of the amount described in IC 21-3-1.7-8 STEP TWO (C) minus the amount transferred under IC 21-2-4-7(a) and IC 21-2-15-13.1(a); and


        (2) on deposit in the school corporation's:
            (A) transportation fund;
            (B) school bus replacement fund; or
            (C) both the transportation fund and school bus replacement fund;
to the school corporation's general fund for use for any general fund purpose.
    (b) The governing body of a school corporation may adopt a resolution to transfer after December 31, 2002, and before July 1, 2003, money that is:
        (1) not greater than the remainder of the amount described in IC 21-3-1.7-8 STEP TWO (D) minus the amount transferred under IC 21-2-4-7(b) and IC 21-2-15-13.1(b); and
        (2) on deposit in the school corporation's:
            (A) transportation fund;
            (B) school bus replacement fund; or
            (C) both the transportation fund and school bus replacement fund;
to the school corporation's general fund for use for any general fund purpose.
    (c) This section expires July 1, 2003.

    SECTION 91. IC 20-4-57 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 57. Annexation of a Township School Corporation
    Sec. 1. As used in this chapter, "annexing corporation" refers to a school corporation that has annexed all or part of any territory of a township school.
    Sec. 2. As used in this chapter, "department" refers to the department of education.
    Sec. 3. As used in this chapter, "township" refers to a township where any part of a township school was located.
    Sec. 4. As used in this chapter, "township school" refers to:
        (1) a township school that loses territory to an annexing corporation as a result of an annexation;
        (2) the township school's successor; or
        (3) the township.
    Sec. 5. (a) An annexing corporation may file a petition of appeal with the department of local government finance for emergency financial relief.
    (b) The annexing corporation shall serve the petition on the following:
        (1) The department.
        (2) The township.
        (3) The township school.
        (4) Any other annexing corporation that annexed the township school on the same date.
    (c) All annexing corporations are parties to the petition.
    Sec. 6. If the department of local government finance receives a petition of appeal under section 5 of this chapter, the department of local government finance shall submit the petition to the school property tax control board established under IC 6-1.1-19-4.1 for a fact finding hearing.
    Sec. 7. (a) If the department of local government finance submits a petition to the school property tax control board under section 5 of this chapter, the school property tax control board shall hold a fact finding hearing.
    (b) At a hearing described in subsection (a), the school property tax control board shall determine the following:
        (1) Whether the township school has made all payments required by any statute, including the following:
            (A) P.L.32-1999.
            (B) IC 20-4-4-7 and IC 20-4-16-3.
            (C) The resolution or plan of annexation of the township school, including:
                (i) any amendment to the resolution or plan;
                (ii) any supporting or related documents; and
                (iii) any agreement between the township school and an annexing corporation relating to the winding up of affairs of the township school.
        (2) The amount, if any, by which the township school is in arrears on any payment described in subdivision (1).
        (3) Whether the township school has filed with the department all reports concerning the affairs of the township school, including all transfer tuition reports required for the two (2) school years immediately preceding the date on which the township school was annexed.
    (c) In determining the amount of arrears under subsection (b)(2), the school property tax control board shall consider all amounts due to an annexing corporation, including the following:
        (1) Any transfer tuition payments due to the annexing corporation.
        (2) All levies, excise tax distributions, and state distributions received by the township school and due to the annexing

corporation, including levies and distributions received by the township school after the date on which the township school was annexed.
        (3) All excessive levies that the township school agreed to impose and pay to an annexing corporation but failed to impose.
    (d) If, in a hearing under this section, a school property tax control board determines that a township school has:
        (1) under subsection (b)(1), failed to make a required payment; or
        (2) under subsection (b)(3), failed to file a required report;
the department may act under section 8 of this chapter.
    Sec. 8. (a) If a school property tax control board makes a determination under section 7(d) of this chapter, the department:
        (1) may prohibit a township from:
            (A) acquiring real estate;
            (B) making a lease or incurring any other contractual obligation calling for an annual outlay by the township exceeding ten thousand dollars ($10,000);
            (C) purchasing personal property for a consideration greater than ten thousand dollars ($10,000); and
            (D) adopting or advertising a budget, tax levy, or tax rate for any calendar year;
        until the township school has made all required payments under section 7(b)(1) of this chapter and filed all required reports under section 7(b)(3) of this chapter; and
        (2) shall certify to the treasurer of state the amount of arrears determined under section 7(b)(3) of this chapter.
    (b) Upon being notified of the amount of arrears certified under subsection (a)(2), the treasurer of state shall make payments from the funds of state to the extent, but not in excess, of any amounts appropriated by the general assembly for distribution to the township school, deducting the payments from any amount distributed to the township school.
    Sec. 9. The department may grant permission to a township school or a township to impose an excess levy to satisfy its obligations under this chapter.

    SECTION 92. IC 21-2-15-11, AS AMENDED BY SEA 357-2002, SECTION 448, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. (a) To provide for the capital projects fund, the governing body may, for each year in which a plan adopted under section 5 of this chapter is in effect, impose a property

tax rate that does not exceed forty-one and sixty-seven hundredths cents ($0.4167) on each one hundred dollars ($100) of assessed valuation of the school corporation. This actual rate must be advertised in the same manner as other property tax rates.
    (b) The maximum property tax rate levied by each school corporation must be adjusted each time a general reassessment of property takes effect. The adjusted property tax rate becomes the new maximum property tax rate for the levy for property taxes first due and payable in each year:
        (1) after the general reassessment for which the adjustment was made takes effect; and
        (2) before the next general reassessment takes effect.

    (c) The new maximum rate under this section is the tax rate determined under STEP SEVEN of the following formula:
        STEP ONE: Determine the maximum rate for the school corporation for the year preceding the year in which the general reassessment takes effect.
        STEP TWO: Determine the actual percentage increase (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value of the taxable property from the year preceding the year the general reassessment takes effect to the year that the general reassessment is effective.
        STEP THREE: Determine the three (3) calendar years that immediately precede the ensuing calendar year and in which a statewide general reassessment of real property does not first become effective.
        STEP FOUR: Compute separately, for each of the calendar years determined in STEP THREE, the actual percentage increase (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value of the taxable property from the preceding year.
        STEP FIVE: Divide the sum of the three (3) quotients computed in STEP FOUR by three (3).
        STEP SIX: Determine the greater of the following:
            (A) Zero (0).
            (B) The result of the STEP TWO percentage minus the STEP FIVE percentage.
        STEP SEVEN: Determine the quotient of the STEP ONE tax rate divided by the sum of one (1) plus the STEP SIX percentage increase.
    (d) The department of local government finance shall compute the maximum rate allowed under subsection (c) and provide the rate to each school corporation.


    SECTION 93. IC 21-2-15-13.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 13.1. (a) The governing body of a school corporation may adopt a resolution to transfer after June 30, 2002, and before January 1, 2003, money that is:
        (1) not greater than the remainder of the amount described in IC 21-3-1.7-8 STEP TWO (C) minus the amount transferred under IC 21-2-4-7(a) and IC 21-2-11.5-5(a); and
        (2) on deposit in the school corporation's capital projects fund;
to the school corporation's general fund for use for any general fund purpose.
    (b) The governing body of a school corporation may adopt a resolution to transfer after December 31, 2002, and before July 1, 2003, money that is:
        (1) not greater than the remainder of the amount described in IC 21-3-1.7-8 STEP TWO (D) minus the amount transferred under IC 21-2-4-7(b) and IC 21-2-11.5-5(b); and
        (2) on deposit in the school corporation's capital projects fund;
to the school corporation's general fund for use for any general fund purpose.
    (c) This section expires July 1, 2003.

    SECTION 94. IC 21-3-1.7-3.1, AS AMENDED BY P.L.291-2001, SECTION 240, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3.1. (a) As used in this chapter, "previous year revenue" for calculations with respect to a school corporation equals:
        (1) the school corporation's tuition support for regular programs, including basic tuition support, and excluding:
            (A) special education grants;
            (B) vocational education grants;
            (C) at-risk programs;
            (D) the enrollment adjustment grant;
            (E) for 1999 and thereafter, the academic honors diploma award; and
            (F) for 2001 and thereafter, the primetime distribution;
        for the year that precedes the current year; plus
        (2) the school corporation's tuition support levy for the year that precedes the current year before the reductions required under section 5(1), 5(2), and 5(3) of this chapter; plus
        (3) distributions received by the school corporation under

IC 6-1.1-21.6 for the year that precedes the current year; plus
        (4) the school corporation's excise tax revenue for the year that precedes the current year by two (2) years; minus
        (5) an amount equal to the reduction in the school corporation's tuition support under subsection (b) or IC 20-10.1-2-1, or both; plus
        (6) in calendar year 2003, the amount determined for calendar year 2002 under section 8 of this chapter, STEP TWO (C);
plus
        (7) in calendar year 2004, the amount determined for calendar year 2002 under section 8 of this chapter, STEP TWO (D).

    (b) A school corporation's previous year revenue shall be reduced if:
        (1) the school corporation's state tuition support for special or vocational education was reduced as a result of a complaint being filed with the department of education after December 31, 1988, because the school program overstated the number of children enrolled in special or vocational education programs; and
        (2) the school corporation's previous year revenue has not been reduced under this subsection more than one (1) time because of a given overstatement.
The amount of the reduction equals the amount the school corporation would have received in tuition support for special and vocational education because of the overstatement.
    SECTION 95. IC 21-3-1.7-8, AS AMENDED BY P.L.291-2001, SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. Notwithstanding IC 21-3-1.6 and subject to section 9 of this chapter, the state distribution for a calendar year for tuition support for basic programs for each school corporation equals the result determined using the following formula:
        STEP ONE:
            (A) For a school corporation not described in clause (B), determine the school corporation's result under STEP FIVE of section 6.7(b) of this chapter for the calendar year.
            (B) For a school corporation that has target revenue per adjusted ADM for a calendar year that is equal to the amount under STEP ONE (A) of section 6.7(b) of this chapter, determine the sum of:
                (i) the school corporation's result under STEP ONE of section 6.7(b) of this chapter for the calendar year; plus
                (ii) the amount of the annual decrease in federal aid to

impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years; plus
                (iii) the original amount of an excessive tax levy the school corporation imposed as a result of the passage, during the preceding year, of a referendum under IC 6-1.1-19-4.5(c) for taxes first due and payable during the year; plus
                (iv) the part of the maximum general fund levy for the year that equals the original amount of the levy imposed by the school corporation to cover the costs of opening a new school facility during the preceding year.
        STEP TWO: Determine the remainder of:
            (A) the STEP ONE amount; minus
            (B) the sum of:
            (i) (A) the school corporation's tuition support levy; plus
            (ii) (B) the school corporation's excise tax revenue for the year that precedes the current year by one (1) year;
             (C) for the last six (6) months of calendar year 2002, the product of:
                (i) the school corporation's assessed valuation for calendar year 2002 divided by one hundred (100); multiplied by
                (ii) the lesser of three hundred twenty-eight ten-thousandths (0.0328) or the school corporation's capital projects fund tax rate for calendar year 2002 multiplied by five-tenths (0.5); and
            (D) for the first six (6) months of calendar year 2003, the product of:
                (i) the school corporation's assessed valuation for calendar year 2002 divided by one hundred (100); multiplied by
                (ii) the lesser of three hundred twenty-eight ten-thousandths (0.0328) or the school corporation's capital projects fund tax rate for calendar year 2002 multiplied by five-tenths (0.5).

         STEP THREE: Determine the remainder of the STEP ONE amount minus the STEP TWO result.
If the state tuition support determined for a school corporation under this section is negative, the school corporation is not entitled to any state tuition support. In addition, the school corporation's maximum general fund levy under IC 6-1.1-19-1.5 shall be reduced by the amount of the negative result.


    SECTION 96. IC 21-3-1.7-9, AS AMENDED BY SEA 216-2002, SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. (a) Subject to the amount appropriated by the general assembly for tuition support, the amount that a school corporation is entitled to receive in tuition support for a year is the amount determined in section 8 of this chapter.
    (b) If the total amount to be distributed as tuition support under this chapter, for enrollment adjustment grants under section 9.5 of this chapter, for at-risk programs under section 9.7 of this chapter, for academic honors diploma awards under section 9.8 of this chapter, and for primetime distributions under IC 21-1-30, for special education grants under IC 21-3-2.1, and for vocational education grants under IC 21-3-12 for a particular year, exceeds:
        (1) three billion three hundred sixty-three million four hundred thousand dollars ($3,363,400,000) in 2001;
        (2) three billion four hundred seventy-one million one hundred thousand dollars ($3,471,100,000) three billion four hundred thirty-seven million one hundred thousand dollars ($3,437,100,000) in 2002; and
        (3) three billion five hundred ninety-four million two hundred thousand dollars ($3,594,200,000) three billion five hundred thirty-six million five hundred thousand dollars ($3,536,500,000) in 2003;
the amount to be distributed for tuition support under this chapter to each school corporation during each of the last six (6) months of the year shall be reduced by the same dollar amount per ADM (as adjusted by IC 21-3-1.6-1.1) so that the total reductions equal the amount of the excess.
    SECTION 97. IC 21-3-2.1 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 2.1. Special Education Grants
    Sec. 1. The definitions in IC 21-3-1.6 apply throughout this chapter.
    Sec. 2. In addition to the amount a school corporation is entitled to receive in tuition support, each school corporation is entitled to receive a grant for special education programs. The amount of the special education grant is based on the count of eligible pupils enrolled in special education programs on December 1 of the preceding year in the corporation or in a transferee corporation.

    Sec. 3. (a) In its nonduplicated count of pupils in programs for severe disabilities, a school corporation shall count each pupil

served in any one (1) of the following programs:
        (1) Autism.
        (2) Dual sensory impairment.
        (3) Emotional handicap, full time.
        (4) Hearing impairment.
        (5) Severe mental handicap.
        (6) Multiple handicap.
        (7) Orthopedic impairment.
        (8) Traumatic brain injury.
        (9) Visual impairment.
    (b) A pupil may be counted in only one (1) of the programs in this section even if the pupil is served in more than one (1) program.
    (c) A pupil may not be included in the nonduplicated count in this section and in the nonduplicated count of pupils in programs for mild or moderate disabilities in section 4 of this chapter.

    Sec. 4. (a) In its nonduplicated count of pupils in programs for mild and moderate disabilities, a school corporation shall count each pupil served in any one (1) of the following programs:
        (1) Emotional handicap, all other.
        (2) Learning disability.
        (3) Mild mental handicap.
        (4) Moderate mental handicap.
        (5) Other health impairment.
    (b) A pupil may be counted in only one (1) of the programs in this section even if the pupil is served in more than one (1) program.
    (c) A pupil may not be included in the nonduplicated count in this section and in the nonduplicated count of pupils in programs for severe disabilities in section 3 of this chapter.
    Sec. 5. In its duplicated count of pupils in programs for communication disorders, a school corporation shall count each pupil served, even if the pupil is served in another special education program.
    Sec. 6. (a) In its cumulative count of pupils in homebound programs, a school corporation shall count each pupil who received homebound instruction up to and including December 1 of the current year plus each pupil who received homebound instruction after December 1 of the prior school year.
    (b) A school corporation may include a pupil in its cumulative count of pupils in homebound programs even if the pupil also is included in its nonduplicated count of pupils in programs for

severe disabilities, its nonduplicated count of pupils in programs for mild and moderate disabilities, or its duplicated count of pupils in programs for communication disorders.
    Sec. 7. The amount of the grant that a school corporation is entitled to receive for special education programs is equal to:
        (1) the nonduplicated count of pupils in programs for severe disabilities multiplied by:
            (A) eight thousand forty-five dollars ($8,045) in 2002; and
            (B) eight thousand two hundred forty-six dollars ($8,246) in 2003; plus
        (2) the nonduplicated count of pupils in programs of mild and moderate disabilities multiplied by:
            (A) two thousand one hundred eighty-three dollars ($2,183) in 2002; and
            (B) two thousand two hundred thirty-eight dollars ($2,238) in 2003; plus
        (3) the duplicated count of pupils in programs for communication disorders multiplied by:
            (A) five hundred eighteen dollars ($518) in 2002; and
            (B) five hundred thirty-one dollars ($531) in 2003; plus
        (4) the cumulative count of pupils in homebound programs multiplied by:
            (A) five hundred eighteen dollars ($518) in 2002; and
            (B) five hundred thirty-one dollars ($531) in 2003.
    Sec. 8. Participation in a program is not required to the extent of full-time equivalency. The Indiana state board of education shall adopt rules further defining the nature and extent of participation and the type of program qualifying for approval. No count shall be made on any program that has not been approved by the Indiana state board of education or where a pupil is not participating to the extent required by any rule of the board.
    Sec. 9. If a new special education program is created by rule of the Indiana state board of education or by the United States Department of Education, the Indiana state board of education shall determine whether the program shall be included in the list of programs for severe disabilities or in the list of programs for mild and moderate disabilities.

    Sec. 10. This chapter expires January 1, 2004.
    SECTION 98. IC 23-1-23-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. (a) A corporate name:
        (1) must contain the word "corporation", "incorporated",

"company", or "limited", or the abbreviation "corp.", "inc.", "co.", or "ltd.", or words or abbreviations of like import in another language; and
        (2) except as provided in subsection (e), may not contain language stating or implying that the corporation is organized for a purpose other than that permitted by IC 23-1-22-1 and its articles of incorporation.
    (b) Except as authorized by subsections (c) and (d), a corporate name must be distinguishable upon the records of the secretary of state from:
        (1) the corporate name of a corporation or other business entity incorporated or authorized to transact business in Indiana;
        (2) a corporate name reserved or registered under section 2 or 3 of this chapter; and
        (3) the corporate name of a not-for-profit corporation incorporated or authorized to transact business in Indiana.
    (c) A corporation may apply to the secretary of state for authorization to use a name that is not distinguishable upon the secretary of state's records from one (1) or more of the names described in subsection (b). The secretary of state shall authorize use of the name applied for if:
        (1) the other corporation files its written consent to the use, signed by any current officer of the corporation; or
        (2) the applicant delivers to the secretary of state a certified copy of the final judgment of a court of competent jurisdiction establishing the applicant's right to use the name applied for in Indiana.
    (d) A corporation may use the name, including the fictitious name, of another domestic or foreign corporation that is used in Indiana if the other corporation is incorporated or authorized to transact business in Indiana and the proposed user corporation:
        (1) has merged with the other corporation;
        (2) has been formed by reorganization of the other corporation; or
        (3) has acquired all or substantially all of the assets, including the corporate name, of the other corporation.
    (e) A bank holding company (as defined in 12 U.S.C. 1841) may use the word "bank" or "banks" as a part of its name. However, this subsection does not permit a bank holding company to advertise or represent itself to the public as affording the services or performing the duties that a bank or trust company only is entitled to afford and perform.
    (f) Except as provided in IC 23-1-49-6, this article does not control

the use of fictitious names.
    SECTION 99. IC 23-1-38.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]:
     Chapter 38.5. Domestication and Conversion
    Sec. 1. The following definitions apply throughout this chapter:
        (1) "Converting entity" means:
            (A) a domestic business corporation or a domestic other entity that adopts a plan of entity conversion; or
            (B) a foreign other entity converting to a domestic business corporation.
        (2) "Surviving entity" means the corporation or other entity that is in existence immediately after consummation of an entity conversion under this chapter.
    Sec. 2. This chapter may not be used to effect a transaction that:
        (1) converts an insurance company organized on the mutual principle to a company organized on a stock share basis;
        (2) converts a nonprofit corporation to a domestic corporation or other business entity; or
        (3) converts a domestic corporation or other business entity to a nonprofit corporation.
    Sec. 3. If a domestic or foreign business corporation, a nonprofit corporation, or another entity may not be a party to a merger without the approval of the department of financial institutions or the department of insurance, the corporation or other entity may not be a party to a transaction under this chapter without the prior approval of the department of financial institutions or the department of insurance.
    Sec. 4. (a) A foreign business corporation may become a domestic business corporation only if the domestication is permitted by the organic law of the foreign corporation. The laws of Indiana govern the effect of domesticating in Indiana under this chapter.
    (b) A domestic business corporation may become a foreign business corporation only if the domestication is permitted by the laws of the foreign jurisdiction. Regardless of whether the laws of the foreign jurisdiction require the adoption of a plan of domestication, the domestication must be approved by the adoption by the corporation of a plan of domestication in the manner provided in this section. The laws of the foreign jurisdiction govern the effect of domesticating in that jurisdiction.
    (c) The plan of domestication must include:


        (1) a statement of the jurisdiction in which the corporation is to be domesticated;
        (2) the terms and conditions of the domestication;
        (3) the manner and basis of reclassifying the shares of the corporation following its domestication into:
            (A) shares or other securities;
            (B) obligations;
            (C) rights to acquire shares or other securities;
            (D) cash;
            (E) other property; or
            (F) any combination of the types of assets referred to in clauses (A) through (E); and
        (4) any desired amendments to the articles of incorporation of the corporation following its domestication.
    (d) If:
        (1) a debt security, note, or similar evidence of indebtedness for money borrowed, whether secured or unsecured; or
        (2) a contract of any kind;
that is issued, incurred, or executed by a domestic corporation before July 1, 2002, contains a provision applying to a merger of the corporation and the document does not refer to a domestication of the corporation, the provision applies to a domestication of the corporation until the provision is amended after that date.
    Sec. 5. In the case of a domestication of a domestic business corporation in a foreign jurisdiction, the following apply:
        (1) The plan of domestication must be adopted by the board of directors.
        (2) After adopting the plan of domestication, the board of directors must submit the plan to the shareholders for their approval. The board of directors must also transmit to the shareholders a recommendation that the shareholders approve the plan, unless the board of directors makes a determination that because of conflicts of interest or other special circumstances it should not make that recommendation, in which case the board of directors must communicate to the shareholders the basis for that determination.
        (3) The board of directors may condition its submission of the plan of domestication to the shareholders on any basis.
        (4) If the approval of the shareholders is to be given at a meeting, the corporation must notify each shareholder, whether or not the shareholder is entitled to vote, of the

meeting of shareholders at which the plan of domestication is to be submitted for approval. The notice must state that the purpose, or one (1) of the purposes, of the meeting is to consider the plan. The notice must contain or be accompanied by a copy or summary of the plan. The notice must include or be accompanied by a copy of the articles of incorporation as they will be in effect immediately after the domestication.
        (5) Unless a greater requirement is established by the articles of incorporation or by the board of directors acting under subdivision (3), the plan of domestication may be submitted for the approval of the shareholders:
            (A) at a meeting at which a quorum consisting of at least a majority of the votes entitled to be cast on the plan exists; and
            (B) if any class or series of shares is entitled to vote as a separate group on the plan, at a meeting at which a quorum of the voting group consisting of at least a majority of the votes entitled to be cast on the domestication by that voting group is present.
        (6) Separate voting on the plan of domestication by voting groups is required by each class or series of shares that:
            (A) is to be reclassified under the plan of domestication into other securities, obligations, rights to acquire shares or other securities, cash, other property, or any combination of the types of assets referred to in this clause;
            (B) would be entitled to vote as a separate group on a provision of the plan that, if contained in a proposed amendment to articles of incorporation, would require action by separate voting groups under IC 23-1-30-7; or
            (C) is entitled under the articles of incorporation to vote as a voting group to approve an amendment of the articles.
        (7) If any provision of the articles of incorporation, the bylaws, or an agreement to which any of the directors or shareholders are parties, adopted or entered into before July 1, 2002, applies to a merger of the corporation and that document does not refer to a domestication of the corporation, the provision applies to a domestication of the corporation until the provision is amended after that date.
    Sec. 6. (a) After the domestication of a foreign business corporation has been authorized as required by the laws of the foreign jurisdiction, the articles of domestication must be executed by an officer or other duly authorized representative. The articles

must set forth:
        (1) the name of the corporation immediately before the filing of the articles of domestication and, if that name is unavailable for use in Indiana or the corporation desires to change its name in connection with the domestication, a name that satisfies the requirements of IC 23-1-23-1;
        (2) the jurisdiction of incorporation of the corporation immediately before the filing of the articles of domestication in that jurisdiction; and
        (3) a statement that the domestication of the corporation in Indiana was duly authorized as required by the laws of the jurisdiction in which the corporation was incorporated immediately before its domestication under this chapter.
    (b) The articles of domestication must either contain all of the provisions that IC 23-1-21-2(a) requires to be set forth in articles of incorporation and any other desired provisions that IC 23-1-21-2(b) permits to be included in the articles of incorporation, or must have attached articles of incorporation. In either case, provisions that would not be required to be included in restated articles of incorporation may be omitted.
    (c) The articles of domestication must be delivered to the secretary of state for filing, and are effective at the time provided in IC 23-1-18-4.
    (d) If the foreign corporation is authorized to transact business in this state under IC 23-1-49, its certificate of authority is canceled automatically on the effective date of its domestication.
    Sec. 7. (a) Whenever a domestic business corporation has adopted and approved, in the manner required by this chapter, a plan of domestication providing for the corporation to be domesticated in a foreign jurisdiction, an officer or another authorized representative of the corporation must execute articles of charter surrender on behalf of the corporation. The articles of charter surrender must set forth:
        (1) the name of the corporation;
        (2) a statement that the articles of charter surrender are being filed in connection with the domestication of the corporation in a foreign jurisdiction;
        (3) a statement that the domestication was approved by the shareholders and, if voting by any separate voting group was required, by each separate voting group, in the manner required by this chapter and the articles of incorporation; and
        (4) the corporation's new jurisdiction of incorporation.


    (b) The articles of charter surrender must be delivered by the corporation to the secretary of state for filing. The articles of charter surrender are effective at the time provided in IC 23-1-18-4.
    Sec. 8. (a) When a domestication of a foreign business corporation in Indiana becomes effective:
        (1) the title to all real and personal property, both tangible and intangible, held by the corporation remains in the corporation without reversion or impairment;
        (2) the liabilities of the corporation remain the liabilities of the corporation;
        (3) an action or proceeding pending against the corporation continues against the corporation as if the domestication had not occurred;
        (4) the articles of domestication, or the articles of incorporation attached to the articles of domestication, constitute the articles of incorporation of the corporation;
        (5) the shares of the corporation are reclassified into shares, other securities, obligations, rights to acquire shares or other securities, or cash or other property in accordance with the terms of the domestication as approved under the laws of the foreign jurisdiction, and the shareholders are entitled only to the rights provided by those terms and under those laws; and
        (6) the corporation is considered to:
            (A) be incorporated under the laws of Indiana for all purposes;
            (B) be the same corporation without interruption as the corporation that existed under the laws of the foreign jurisdiction; and
            (C) have been incorporated on the date it was originally incorporated in the foreign jurisdiction.
    (b) When a domestication of a domestic business corporation in a foreign jurisdiction becomes effective, the foreign business corporation is considered to:
        (1) appoint the secretary of state as its agent for service of process in a proceeding to enforce the rights of shareholders who exercise appraisal rights in connection with the domestication; and
        (2) agree that it will promptly pay the amount, if any, to which shareholders are entitled under IC 23-1-40.
    (c) The owner liability of a shareholder in a foreign corporation that is domesticated in Indiana is as follows:
        (1) The domestication does not discharge owner liability under the laws of the foreign jurisdiction to the extent owner liability arose before the effective time of the articles of domestication.
        (2) The shareholder does not have owner liability under the laws of the foreign jurisdiction for a debt, obligation, or liability of the corporation that arises after the effective time of the articles of domestication.
        (3) The provisions of the laws of the foreign jurisdiction continue to apply to the collection or discharge of any owner liability preserved by subdivision (1), as if the domestication had not occurred and the corporation were still incorporated under the laws of the foreign jurisdiction.
        (4) The shareholder has whatever rights of contribution from other shareholders are provided by the laws of the foreign jurisdiction with respect to any owner liability preserved by subdivision (1), as if the domestication had not occurred and the corporation were still incorporated under the laws of that jurisdiction.
    Sec. 9. (a) Unless otherwise provided in a plan of domestication of a domestic business corporation, after the plan has been adopted and approved as required by this chapter, and at any time before the domestication has become effective, the plan of domestication may be abandoned by the board of directors without action by the shareholders.
    (b) If a domestication is abandoned under subsection (a) after articles of charter surrender have been filed with the secretary of state but before the domestication has become effective, a statement that the domestication has been abandoned under this section, executed by an officer or other authorized representative, must be delivered to the secretary of state for filing before the effective date of the domestication. The statement is effective upon filing and the domestication is abandoned and may not become effective.
    (c) If the domestication of a foreign business corporation in Indiana is abandoned under the laws of the foreign jurisdiction after articles of domestication have been filed with the secretary of state, a statement that the domestication has been abandoned, executed by an officer or other authorized representative, must be delivered to the secretary of state for filing. The statement is effective upon filing and the domestication is abandoned and may not become effective.
    Sec. 10. (a) A domestic business corporation may become a domestic other entity under a plan of entity conversion. If the organic law of the other entity does not provide for a conversion, section 14 of this chapter governs the effect of converting to that form of entity.
    (b) A domestic business corporation may become a foreign other entity only if the entity conversion is permitted by the laws of the foreign jurisdiction. The laws of the foreign jurisdiction govern the effect of converting to an other entity in that jurisdiction.
    (c) A domestic other entity may become a domestic business corporation. Section 14 of this chapter governs the effect of converting to a domestic business corporation. If the organic law of a domestic other entity does not provide procedures for the approval of an entity conversion, the conversion must be adopted and approved, and the entity conversion effectuated, in the same manner as a merger of the other entity, and its interest holders are entitled to appraisal rights if appraisal rights are available upon any type of merger under the organic law of the other entity. If the organic law of a domestic other entity does not provide procedures for the approval of either an entity conversion or a merger, a plan of entity conversion must be adopted and approved, the entity conversion effectuated, and appraisal rights exercised, in accordance with the procedures set forth in this chapter and in IC 23-1-40. Without limiting the provisions of this subsection, a domestic other entity whose organic law does not provide procedures for the approval of an entity conversion is subject to subsection (e) and section 12(7) of this chapter. For purposes of applying this chapter and IC 23-1-40:
        (1) the other entity and its interest holders, interests, and organic documents taken together are considered a domestic business corporation and the shareholders, shares, and articles of incorporation of a domestic business corporation, as the context may require; and
        (2) if the business and affairs of the other entity are managed by a group of persons that is not identical to the interest holders, that group is considered the board of directors.
    (d) A foreign other entity may become a domestic business corporation if the organic law of the foreign other entity authorizes it to become a corporation in another jurisdiction. The laws of this state govern the effect of converting to a domestic business corporation under this chapter.
    (e) If a debt security, note, or similar evidence of indebtedness

for money borrowed, whether secured or unsecured, or a contract of any kind, issued, incurred, or executed by a domestic business corporation before July 1, 2002, applies to a merger of the corporation and the document does not refer to an entity conversion of the corporation, the provision applies to an entity conversion of the corporation until the provision is amended after that date.
    Sec. 11. A plan of entity conversion must include:
        (1) a statement of the type of other entity that the surviving entity will be and, if it will be a foreign other entity, its jurisdiction of organization;
        (2) the terms and conditions of the conversion;
        (3) the manner and basis of converting the shares of the domestic business corporation following its conversion into interests or other securities, obligations, rights to acquire interests or other securities, cash, other property, or any combination of the types of assets referred to in this subdivision; and
        (4) the full text, as in effect immediately after consummation of the conversion, of the organic documents of the surviving entity.
    Sec. 12. In the case of an entity conversion of a domestic business corporation to a domestic other entity or foreign other entity, the following apply:
        (1) The plan of entity conversion must be adopted by the board of directors.
        (2) After adopting the plan of entity conversion, the board of directors must submit the plan to the shareholders for their approval. The board of directors must also transmit to the shareholders a recommendation that the shareholders approve the plan, unless the board of directors makes a determination that because of conflicts of interest or other special circumstances it should not make that recommendation, in which case the board of directors must communicate to the shareholders the basis for that determination.
        (3) The board of directors may condition its submission of the plan of entity conversion to the shareholders on any basis.
        (4) If the approval of the shareholders is to be given at a meeting, the corporation must notify each shareholder, whether or not entitled to vote, of the meeting of shareholders at which the plan of entity conversion is to be submitted for

approval. The notice must state that the purpose, or one (1) of the purposes, of the meeting is to consider the plan. The notice must contain or be accompanied by a copy or summary of the plan. The notice must include or be accompanied by a copy of the organic documents as they will be in effect immediately after the entity conversion.
        (5) Unless a greater requirement is established by the articles of incorporation or by the board of directors acting under subdivision (3), approval of the plan of entity conversion requires the approval of the shareholders at a meeting at which a quorum consisting of at least a majority of the votes entitled to be cast on the plan exists.
        (6) In addition to the vote required under subdivision (5), separate voting on the plan of equity conversion by voting groups is also required by each class or series of shares. Unless the articles of incorporation, or the board of directors acting under subdivision (3), requires a greater vote or a greater number of votes to be present, if the corporation has more than one (1) class or series of shares outstanding, approval of the plan of entity conversion requires the approval of each separate voting group at a meeting at which a quorum of the voting group consisting of at least a majority of the votes entitled to be cast on the conversion by that voting group is present.
        (7) If any provision of the articles of incorporation, the bylaws, or an agreement to which any of the directors or shareholders are parties, adopted or entered into before July 1, 2002, applies to a merger of the corporation and the document does not refer to an entity conversion of the corporation, the provision applies to an entity conversion of the corporation until the provision is subsequently amended.
        (8) If as a result of the conversion one (1) or more shareholders of the corporation would become subject to owner liability for the debts, obligations, or liabilities of any other person or entity, approval of the plan of conversion requires the execution, by each shareholder, of a separate written consent to become subject to the owner liability.
    Sec. 13. (a) After conversion of a domestic business corporation to a domestic other entity has been adopted and approved as required by this chapter, articles of entity conversion must be executed on behalf of the corporation by any officer or other duly authorized representative. The articles must:


        (1) set forth the name of the corporation immediately before the filing of the articles of entity conversion and the name to which the name of the corporation is to be changed, which must satisfy the organic law of the surviving entity;
        (2) state the type of other entity that the surviving entity will be;
        (3) set forth a statement that the plan of entity conversion was duly approved by the shareholders in the manner required by this chapter and the articles of incorporation; and
        (4) if the surviving entity is a filing entity, either contain all of the provisions required to be set forth in its public organic document and any other desired provisions that are permitted, or have attached a public organic document, except that, in either case, provisions that would not be required to be included in a restated public organic document may be omitted.
    (b) After the conversion of a domestic other entity to a domestic business corporation has been adopted and approved as required by the organic law of the other entity, an officer or another duly authorized representative of the other entity must execute articles of entity conversion on behalf of the other entity. The articles must:
        (1) set forth the name of the other entity immediately before the filing of the articles of entity conversion and the name to which the name of the other entity is to be changed, which must satisfy the requirements of IC 23-1-23-1;
        (2) set forth a statement that the plan of entity conversion was duly approved in accordance with the organic law of the other entity;
        (3) either contain all of the provisions that IC 23-1-21-2(a) requires to be set forth in articles of incorporation and any other desired provisions that IC 23-1-21-2(b) permits to be included in articles of incorporation, or have attached articles of incorporation, except that, in either case provisions that would not be required to be included in restated articles of incorporation of a domestic business corporation may be omitted.
    (c) After the conversion of a foreign other entity to a domestic business corporation has been authorized as required by the laws of the foreign jurisdiction, articles of entity conversion must be executed on behalf of the foreign other entity by any officer or authorized representative. The articles must:
        (1) set forth the name of the other entity immediately before

the filing of the articles of entity conversion and the name to which the name of the other entity is to be changed, which must satisfy the requirements of IC 23-1-23-1;
        (2) set forth the jurisdiction under the laws of which the other entity was organized immediately before the filing of the articles of entity conversion and the date on which the other entity was organized in that jurisdiction;
        (3) set forth a statement that the conversion of the other entity was duly approved in the manner required by its organic law; and
        (4) either contain all of the provisions that IC 23-1-21-2(a) requires to be set forth in articles of incorporation and any other desired provisions that IC 23-1-21-2(b) permits to be included in articles of incorporation, or have attached articles of incorporation, except that, in either case, provisions that would not be required to be included in restated articles of incorporation of a domestic business corporation may be omitted.
    (d) The articles of entity conversion must be delivered to the secretary of state for filing and take effect at the effective time provided in IC 23-1-18-4.
    (e) If the converting entity is a foreign other entity that is authorized to transact business in Indiana under a provision of law similar to IC 23-1-49, its certificate of authority or other type of foreign qualification is canceled automatically on the effective date of its conversion.
    Sec. 14. (a) Whenever a domestic business corporation has adopted and approved, in the manner required by this chapter, a plan of entity conversion providing for the corporation to be converted to a foreign other entity, articles of charter surrender must be executed on behalf of the other corporation by any officer or other duly authorized representative. The articles of charter surrender must set forth:
        (1) the name of the corporation;
        (2) a statement that the articles of charter surrender are being filed in connection with the conversion of the corporation to a foreign other entity;
        (3) a statement that the conversion was duly approved by the shareholders in the manner required by this chapter and the articles of incorporation;
        (4) the jurisdiction under the laws of which the surviving entity will be organized; and


        (5) if the surviving entity will be a nonfiling entity, the address of its executive office immediately after the conversion.
    (b) The articles of charter surrender must be delivered by the corporation to the secretary of state for filing. The articles of charter surrender take effect on the effective time provided in IC 23-1-18-4.
    Sec. 15. (a) When a conversion under this section in which the surviving entity is a domestic business corporation or domestic other entity becomes effective:
        (1) the title to all real and personal property, both tangible and intangible, of the converting entity remains in the surviving entity without reversion or impairment;
        (2) the liabilities of the converting entity remain the liabilities of the surviving entity;
        (3) an action or proceeding pending against the converting entity continues against the surviving entity as if the conversion had not occurred;
        (4) in the case of a surviving entity that is a filing entity, the articles of conversion, or the articles of incorporation or public organic document attached to the articles of conversion, constitute the articles of incorporation or public organic document of the surviving entity;
        (5) in the case of a surviving entity that is a nonfiling entity, the private organic document provided for in the plan of conversion constitutes the private organic document of the surviving entity;
        (6) the share or interests of the converting entity are reclassified into shares, interests, other securities, obligations, rights to acquire shares, interests, or their securities, or into cash or other property in accordance with the plan of conversion, and the shareholders or interest holders of the converting entity are entitled only to the rights provided in the plan of conversion and to any rights they may have under IC 23-1-40; and
        (7) the surviving entity is considered to:
            (A) be a domestic business corporation or other entity for all purposes;
            (B) be the same corporation or other entity without interruption as the converting entity that existed before the conversion; and
            (C) have been incorporated or otherwise organized on the date that the converting entity was originally incorporated

or organized.
    (b) When a conversion of a domestic business corporation to a foreign other entity becomes effective, the surviving entity is considered to:
        (1) appoint the secretary of state as its agent for service of process in a proceeding to enforce the rights of shareholders who exercise appraisal rights in connection with the conversion; and
        (2) agree that it will promptly pay the amount, if any, to which the shareholders referred to in subdivision (1) are entitled under IC 23-1-40.
    (c) A shareholder who becomes subject to owner liability for some or all of the debts, obligations, or liabilities of the surviving entity is personally liable only for those debts, obligations, or liabilities of the surviving entity that arise after the effective time of the articles of entity conversion.
    (d) The owner liability of an interest holder in an other entity that converts to a domestic business corporation is as follows:
        (1) The conversion does not discharge any owner liability under the organic law of the other entity to the extent that any such owner liability arose before the effective time of the articles of entity conversion.
        (2) The interest holder does not have owner liability under the organic law of the other entity for any debt, obligation, or liability of the corporation that arises after the effective time of the articles of entity conversion.
        (3) The provisions of the organic law of the other entity continue to apply to the collection or discharge of any owner liability preserved by subdivision (1), as if the conversion had not occurred and the surviving entity were still the converting entity.
        (4) The interest holder has whatever rights of contribution from other interest holders are provided by the organic law of the other entity with respect to any owner liability preserved by subdivision (1), as if the conversion had not occurred and the surviving entity were still the converting entity.
    Sec. 16. (a) Unless otherwise provided in a plan of entity conversion of a domestic business corporation, after the plan has been adopted and approved as required by this chapter, and at any time before the entity conversion becomes effective, the plan of entity conversion may be abandoned by the board of directors

without action by the shareholders.
    (b) If an entity conversion is abandoned after articles of entity conversion or articles of charter surrender have been filed with the secretary of state but before the entity conversion becomes effective, a statement that the entity conversion has been abandoned under this section, executed by an officer or authorized representative, must be delivered to the secretary of state for filing before the effective date of the entity conversion. Upon filing the statement takes effect and the entity conversion is considered abandoned and shall not become effective.

    SECTION 100. IC 23-1-40-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. (a) As used in this section, "other business entity" means a limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other entity that is formed under the requirements of applicable law and is not otherwise subject to section 1 of this chapter.
    (b) As used in this section "surviving entity" means the corporation, limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other entity that is in existence immediately after consummation of a merger under this section.
    (c) One (1) or more domestic corporations may merge with or into one (1) or more other business entities formed, organized, or incorporated under the laws of Indiana or any other state, the United States, a foreign country, or a foreign jurisdiction if the following requirements are met:
        (1) Each domestic corporation that is a party to the merger complies with the applicable provisions of this chapter.
        (2) Each domestic other business entity that is a party to the merger complies with the requirements of applicable law.
        (3)The merger is permitted by the laws of the state, country, or jurisdiction under which each other business entity that is a party to the merger is formed, organized, or incorporated, and each other business entity complies with the laws in effecting the merger.
        (4) The merging entities approve a plan of merger that sets forth the following:
            (A) The name of each domestic corporation and the name and jurisdiction of formation, organization, or incorporation of each other business entity planning to

merge, and the name of the surviving or resulting domestic corporation or other business entity into which each other domestic corporation or other business entity plans to merge.
            (B) The terms and conditions of the merger.
            (C) The manner and basis of converting the shares of each domestic corporation that is a party to the merger and the partnership interests, shares, obligations, or other securities of each other business entity that is a party to the merger into partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in whole or in part, into cash or other property, and the manner and basis of converting rights to acquire the shares of each domestic corporation that is a party to the merger and rights to acquire partnership interests, interests, shares, obligations, or other securities of each other business entity that is a party to the merger into rights to acquire partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in whole or in part, into cash or other property.
            (D) If a partnership is to be the surviving entity, the names and business addresses of the general partners of the surviving entity.
            (E) If a limited liability company is to be the surviving entity and management of the limited liability company is vested in one (1) or more managers, the names and business addresses of the managers.
            (F) All statements required to be set forth in the plan of merger by the laws under which each other business entity that is a party to the merger is formed, organized, or incorporated.
        (5) The plan of merger may set forth the following:
            (A) If a domestic corporation is to be the surviving entity, any amendments to, or a restatement of, the articles of incorporation of the surviving entity, and the amendments or restatement will be effective at the effective date of the merger.
            (B) Any other provisions relating to the merger.
    (d) The plan of merger required by subsection (c)(4) must be adopted and approved by each domestic corporation that is a party

to the merger in the same manner as is provided in this chapter.
    (e) Notwithstanding subsection (c)(4), if the surviving entity is a partnership, a shareholder of a domestic corporation that is a party to the merger does not, as a result of the merger, become a general partner of the surviving entity, and the merger does not become effective under this chapter, unless:
        (1) the shareholder specifically consents in writing to become a general partner of the surviving entity; and
        (2) written consent is obtained from each shareholder who, as a result of the merger, would become a general partner of the surviving entity;
A shareholder providing written consent under this subsection is considered to have voted in favor of the plan of merger for purposes of this chapter.
    (f) This section, to the extent applicable, applies to the merger of one (1) or more domestic corporations with or into one (1) or more other business entities.
    (g) Notwithstanding any other law, a merger consisting solely of the merger of one (1) or more domestic corporations with or into one (1) or more foreign corporations must be consummated solely according to the requirements of this section.

    SECTION 101. IC 23-4-1-45, AS AMENDED BY P.L.277-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 45. (a) To qualify as a limited liability partnership, a partnership under this chapter must do the following:
        (1) File a registration with the secretary of state in a form determined by the secretary of state that satisfies the following:
            (A) Is signed by one (1) or more partners authorized to sign the registration. A signature on a document under this clause that is transmitted and filed electronically is sufficient if the person transmitting and filing the document:
                (i) has the intent to file the document as evidenced by a symbol executed or adopted by a party with present intention to authenticate the filing; and
                (ii) enters the filing party's name on the electronic form in a signature box or other place indicated by the secretary of state.
            (B) States the name of the limited liability partnership, which must:
                (i) contain the words "Limited Liability Partnership" or the abbreviation "L.L.P." or "LLP" as the last words or letters of the name; and


                (ii) be distinguishable upon the records of the secretary of state from the name of a limited liability partnership or other business entity registered to transact business in Indiana.
            (C) States the address of the partnership's principal office.
            (D) States the name of the partnership's registered agent and the address of the partnership's registered office for service of process as required to be maintained by section 50 of this chapter.
            (E) Contains a brief statement of the business in which the partnership engages.
            (F) States any other matters that the partnership determines to include.
            (G) States that the filing of the registration is evidence of the partnership's intention to act as a limited liability partnership.
        (2) File a ninety dollar ($90) registration fee with the registration.
    (b) The secretary of state shall grant limited liability partnership status to any partnership that submits a completed registration with the required fee.
    (c) Registration is effective and a partnership becomes a limited liability partnership on the date a registration is filed with the secretary of state or at any later date or time specified in the registration. The registration remains effective until it is voluntarily withdrawn by filing with the secretary of state a written withdrawal notice under section 45.2 of this chapter.
    (d) The status of a partnership as a limited liability partnership and the liability of a partner of a limited liability partnership is not adversely affected by errors or subsequent changes in the information stated in a registration under subsection (a).
    (e) A registration on file with the secretary of state is notice that the partnership is a limited liability partnership and is notice of all other facts set forth in the registration.
    SECTION 102. IC 23-4-1-53 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 53. (a) As used in this section, "other business entity" means a corporation, limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other entity that is formed under the requirements of applicable law.
    (b) As used in this section, "surviving entity" means the corporation, limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other

entity that is in existence immediately after consummation of a merger under this section.
    (c) One (1) or more domestic limited liability partnerships may merge with or into one (1) or more other business entities formed, organized, or incorporated under the laws of Indiana or any other state, the United States, a foreign country, or a foreign jurisdiction if the following requirements are met:
        (1) Each domestic limited liability partnership that is a party to the merger complies with the applicable provisions of this chapter.
        (2) Each domestic other business entity that is a party to the merger complies with the requirements of applicable law.
        (3) The merger is permitted by the laws of the state, country or jurisdiction under which each other business entity that is a party to the merger is formed, organized, or incorporated, and each other business entity complies with the laws in effecting the merger.
        (4) The merging entities approve a plan of merger that sets forth the following:
            (A) The name of each domestic limited liability partnership and the name and jurisdiction of formation, organization, or incorporation of each other business entity planning to merge, and the name of the surviving or resulting domestic limited liability partnership or other business entity into which each other domestic limited liability partnership or other business entity plans to merge.
            (B) The terms and conditions of the merger.
            (C) The manner and basis of converting the partnership shares of the limited liability partnership that is a party to the merger and the partnership interests, shares, obligations, or other securities of each other business entity that is a party to the merger into partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in whole or in part, into cash or other property, and the manner and basis of converting rights to acquire the shares of each domestic corporation that is a party to the merger and rights to acquire partnership interests, interests, shares, obligations, or other securities of each other business entity that is a party to the merger into rights to acquire partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in

whole or in part, into cash or other property.
            (D) If a partnership is to be the surviving entity, the names and business addresses of the general partners of the surviving entity.
            (E) If a limited liability company is to be the surviving entity and management of the limited liability company is vested in one (1) or more managers, the names and business addresses of the managers.
            (F) All statements required to be set forth in the plan of merger by the laws under which each other business entity that is a party to the merger is formed, organized, or incorporated.
        (5) The plan of merger may set forth the following:
            (A) If a domestic corporation is to be the surviving entity, any amendments to, or a restatement of, the articles of incorporation of the surviving entity, and the amendments or restatement will be effective at the effective date of the merger.
            (B) Any other provisions relating to the merger.
    (d) The plan of merger required by subsection (c)(4) must be adopted and approved by each domestic limited liability partnership that is a party to the merger in the same manner as is provided in this chapter.
    (e) Notwithstanding subsection (c)(4), if the surviving entity is a partnership, a shareholder of a domestic corporation that is a party to the merger does not, as a result of the merger, become a general partner of the surviving entity and the merger does not become effective under this chapter, unless:
        (1) the shareholder specifically consents in writing to become a general partner of the surviving entity; and
        (2) written consent is obtained from each shareholder who, as a result of the merger, would become a general partner of the surviving entity;
A shareholder providing written consent under this subsection is considered to have voted in favor of the plan of merger for purposes of this chapter.
    (f) This section, to the extent applicable, applies to the merger of one (1) or more domestic limited liability partnerships with or into one (1) or more other business entities.
    (g) Notwithstanding any other law, a merger consisting solely of the merger of one (1) or more domestic limited liability partnerships with or into one (1) or more foreign corporations must be consummated solely according to the requirements of this section.


    SECTION 103. IC 23-16-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. (a) The name of each limited partnership as set forth in its certificate of limited partnership:
        (1) must contain the words "limited partnership" or the abbreviation "L.P.";
        (2) may not contain the name of a limited partner unless:
            (A) it is also the name of a general partner or the corporate name of a corporate general partner; or
            (B) the business of the limited partnership had been carried on under that name before the admission of that limited partner;
        (3) may not contain any word or phrase indicating or implying that it is organized other than for a purpose stated in its partnership agreement; and
        (4) except as provided in subsection (b), must be such as to distinguish it upon the records in the office of the secretary of state from the name of any limited partnership or other business entity reserved, registered, or organized under the laws of Indiana or qualified to do business or registered as a foreign limited partnership in Indiana.
    (b) A limited partnership may apply to the secretary of state to use a name that is not distinguishable upon the secretary of state's records from one (1) or more of the names described in subsection (a). The secretary of state shall authorize use of the name applied for if:
        (1) the other domestic or foreign limited partnership or other business entity files its written consent to the use of its name, signed by any current general partner of the other limited partnership and verified subject to the penalties for perjury; or
        (2) the applicant delivers to the secretary of state a certified copy of a final court judgment establishing the applicant's right to use the name applied for in Indiana.
    SECTION 104. IC 23-16-3-13 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 13. (a) As used in this section, "other business entity" means a corporation, limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other entity that is formed under the requirements of applicable law.
    (b) As used in this section, "surviving entity" means the corporation, limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other entity that is in existence immediately after consummation of a merger under this section.
    (c) One (1) or more domestic limited partnerships may merge with or into one (1) or more other business entities formed, organized, or incorporated under the laws of Indiana or any other state, the United States, a foreign country, or a foreign jurisdiction if the following requirements are met:
        (1) Each domestic limited partnership corporation that is a party to the merger complies with the applicable provisions of this chapter.
        (2) Each domestic other business entity that is a party to the merger complies with the requirements of applicable law.
        (3) The merger is permitted by the laws of the state, country, or jurisdiction under which each other business entity that is a party to the merger is formed, organized, or incorporated, and each other business entity complies with the laws in effecting the merger.
        (4) The merging entities approve a plan of merger that sets forth the following:
            (A) The name of each domestic limited partnership and the name and jurisdiction of formation, organization, or incorporation of each other business entity planning to merge, and the name of the surviving or resulting domestic corporation or other business entity into which each other domestic corporation or other business entity plans to merge.
            (B) The terms and conditions of the merger.
            (C) The manner and basis of converting the limited partnership shares of each domestic limited partnership that is a party to the merger and the partnership interests, shares, obligations, or other securities of each other business entity that is a party to the merger into partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in whole or in part, into cash or other property, and the manner and basis of converting rights to acquire the shares of each domestic corporation that is a party to the merger and rights to acquire partnership interests, interests, shares, obligations, or other securities of each other business entity that is a party to the merger into rights to acquire partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in whole

or in part, into cash or other property.
            (D) If a partnership is to be the surviving entity, the names and business addresses of the general partners of the surviving entity.
            (E) If a limited liability company is to be the surviving entity and management of the limited liability company is vested in one (1) or more managers, the names and business addresses of the managers.
            (F) All statements required to be set forth in the plan of merger by the laws under which each other business entity that is a party to the merger is formed, organized, or incorporated.
        (5) The plan of merger may set forth the following:
            (A) If a domestic corporation is to be the surviving entity, any amendments to, or a restatement of, the articles of incorporation of the surviving entity, and the amendments or restatement will be effective at the effective date of the merger.
            (B) Any other provisions relating to the merger.
    (d) The plan of merger required by subsection (c)(4) will be adopted and approved by each domestic corporation that is a party to the merger in the same manner as is provided in this chapter.
    (e) Notwithstanding subsection (c)(4), if the surviving entity is a partnership, a shareholder of a domestic corporation that is a party to the merger does not, as a result of the merger, become a general partner of the surviving entity and the merger does not become effective under this chapter, unless:
        (1) the shareholder specifically consents in writing to become a general partner of the surviving entity; and
        (2) written consent is obtained from each shareholder who, as a result of the merger, would become a general partner of the surviving entity;
A shareholder providing written consent under this subsection is considered to have voted in favor of the plan of merger for purposes of this chapter.
    (e) This section, to the extent applicable, applies to the merger of one (1) or more domestic limited partnerships with or into one (1) or more other business entities.
    (f) Notwithstanding any other law, a merger consisting solely of the merger of one (1) or more domestic limited partnerships with or into one (1) or more foreign corporations must be made solely according to the requirements of this section.


    SECTION 105. IC 23-18-2-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. (a) The name of each limited liability company as set forth in its articles of organization:
        (1) must contain the words "limited liability company" or either of the following abbreviations:
            (A) "L.L.C."; or
            (B) "LLC";
        (2) may contain the name of a member or manager; and
        (3) except as provided in subsection (b), must be such as to distinguish the name upon the records of the office of the secretary of state from the name of any limited liability company or other business entity reserved, registered, or organized under the laws of Indiana or qualified to transact business as a foreign limited liability company in Indiana.
    (b) A limited liability company may apply to the secretary of state to use a name that is not distinguishable upon the secretary of state's records from one (1) or more of the names described in subsection (a). The secretary of state shall authorize the use of the name applied for if:
        (1) the other domestic or foreign limited liability company or other business entity files its written consent to the use of its name; or
        (2) the applicant delivers to the secretary of state a certified copy of a final court judgment from a circuit or superior court in the state of Indiana establishing the applicant's right to use the name applied for in Indiana.
    SECTION 106. IC 23-18-7-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. (a) As used in this section, "other business entity" means a corporation, limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other entity that is formed under the requirements of applicable law and is not otherwise subject to section 1 of this chapter.
    (b) As used in this section, "surviving entity" means the corporation, limited liability company, limited liability partnership, limited partnership, business trust, real estate investment trust, or any other entity that is in existence immediately after consummation of a merger under this section.
    (c) One (1) or more domestic limited liability companies may merge with or into one (1) or more other business entities formed, organized, or incorporated under the laws of Indiana or any other state, the United States, a foreign country, or a foreign jurisdiction

if the following requirements are met:
        (1) Each domestic limited liability company that is a party to the merger complies with the applicable provisions of this chapter.
        (2) Each domestic other business entity that is a party to the merger complies with the requirements of applicable law.
        (3) The merger is permitted by the laws of the state, country, or jurisdiction under which each other business entity that is a party to the merger is formed, organized, or incorporated, and each other business entity complies with the laws in effecting the merger.
        (4) The merging entities approve a plan of merger that sets forth the following:
            (A) The name of each domestic limited liability company and the name and jurisdiction of formation, organization, or incorporation of each other business entity planning to merge, and the name of the surviving or resulting domestic limited liability partnership or other business entity into which each other domestic limited liability partnership or other business entity plans to merge.
            (B) The terms and conditions of the merger.
            (C) The manner and basis of converting the limited liability company that is a party to the merger and the partnership interests, shares, obligations, or other securities of each other business entity that is a party to the merger into partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in whole or in part, into cash or other property, and the manner and basis of converting rights to acquire the shares of each domestic corporation that is a party to the merger and rights to acquire partnership interests, interests, shares, obligations, or other securities of each other business entity that is a party to the merger into rights to acquire partnership interests, interests, shares, obligations, or other securities of the surviving entity or any other domestic corporation or other business entity or, in whole or in part, into cash or other property.
            (D) If a partnership is to be the surviving entity, the names and business addresses of the general partners of the surviving entity.
            (E) If a limited liability company is to be the surviving

entity and management thereof is vested in one (1) or more managers, the names and business addresses of the managers.
            (F) All statements required to be set forth in the plan of merger by the laws under which each other business entity that is a party to the merger is formed, organized, or incorporated.
        (5) The plan of merger may set forth the following:
            (A) If a domestic corporation is to be the surviving entity, any amendments to, or a restatement of, the articles of incorporation of the surviving entity, and the amendments or restatement will be effective at the effective date of the merger.
            (B) Any other provisions relating to the merger.
    (d) The plan of merger required by subsection (c)(4) must be adopted and approved by each domestic limited liability company that is a party to the merger in the same manner as is provided in this chapter.
    (e) Notwithstanding subsection (c)(4), if the surviving entity is a partnership, a shareholder of a domestic corporation that is a party to the merger does not, as a result of the merger, become a general partner of the surviving entity and the merger does not become effective under this chapter, unless:
        (1) the shareholder specifically consents in writing to become a general partner of the surviving entity; and
        (2) written consent is obtained from each shareholder who, as a result of the merger, would become a general partner of the surviving entity;
A shareholder providing written consent under this subsection is considered to have voted in favor of the plan of merger for purposes of this chapter.
    (f) This section, to the extent applicable, applies to the merger of one (1) or more domestic limited liability companies with or into one (1) or more other business entities.
    (g) Notwithstanding any other law, a merger consisting solely of the merger of one (1) or more domestic limited liability company with or into one (1) or more foreign corporations must be consummated solely according to the requirements of this section.

    SECTION 107. IC 30-5-2-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. "Principal" means:
        (1)
an individual, including an individual acting as a:
            (1) (A) trustee;


            (2) (B) personal representative; or
            (3) (C) fiduciary;
        (2) a corporation;
        (3) a limited liability company;
        (4) a trust; or
        (5) a partnership;

who signs a power of attorney granting powers to an attorney in fact.
    SECTION 108. IC 33-3-5-2.5, AS AMENDED BY SEA 216-2002, SECTION 131, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.5. (a) As used in this section, "qualifying county" means a county having a population of more than four hundred thousand (400,000) and less than seven hundred thousand (700,000).
    (b) As used in this section, "contractor" means the a general reassessment, general reassessment review, or special reassessment contractor of the department of local government finance under IC 6-1.1-4-32.
    (c) As used in this section, "qualifying official" refers to any of the following:
        (1) A county assessor of a qualifying county.
        (2) A township assessor of a qualifying county.
        (3) The county auditor of a qualifying county.
        (4) The treasurer of a qualifying county.
        (5) The county surveyor of a qualifying county.
        (6) A member of the land valuation committee in a qualifying county.
        (7) Any other township or county official in a qualifying county who has possession or control of information necessary or useful for a general reassessment, general reassessment review, or special reassessment of property to which IC 6-1.1-4-32 applies, including information in the possession or control of an employee or a contractor of the official.
        (8) Any county official in a qualifying county who has control, review, or other responsibilities related to paying claims of a contractor submitted for payment under IC 6-1.1-4-32.

     (d) Upon petition from
        (1) the department of local government finance or
        (2) the a contractor,
the tax court may order a township assessor in a qualifying county or a county assessor of a qualifying county qualifying official to produce information requested in writing from the township assessor or county assessor qualifying official by the department of local government

finance or the contractor.
    (d) (e) If the tax court orders a township assessor or county assessor qualifying official to provide requested information as described in subsection (c), (d), the tax court shall order production of the information not later than fourteen (14) days after the date of the tax court's order.
    (e) (f) The tax court may find that any willful violation of this section by a township assessor or county assessor qualifying official constitutes a direct contempt of the tax court.
    SECTION 109. IC 33-3-5-12, AS AMENDED BY SEA 357-2002, SECTION 458, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) The tax court shall establish a small claims docket for processing:
        (1) claims for refunds from the department of state revenue that do not exceed five thousand dollars ($5,000) for any year; and
        (2) appeals of final determinations of assessed value made by the Indiana board of tax review that do not exceed forty-five thousand dollars ($45,000).
    (b) The tax court shall adopt rules and procedures under which cases on the small claims docket are heard and decided.
    SECTION 110. IC 33-3-5-14.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001 (RETROACTIVE)]: Sec. 14.1. (a) The burden of demonstrating the invalidity of an action taken by the state board of tax commissioners is on the party to the judicial review proceeding asserting the invalidity.
    (b) The validity of an action taken by the state board of tax commissioners shall be determined in accordance with the standards of review provided in this section as applied to the agency action at the time it was taken.
    (c) The tax court shall make findings of fact on each material issue on which the court's decision is based.
    (d) The tax court shall grant relief under section 15 of this chapter only if the tax court determines that a person seeking judicial relief has been prejudiced by an action of the state board of tax commissioners that is:
        (1) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;
        (2) contrary to constitutional right, power, privilege, or immunity;
        (3) in excess of or short of statutory jurisdiction, authority, or limitations;


        (4) without observance of procedure required by law; or
        (5) unsupported by substantial or reliable evidence.
    (e) Subsection (d) may not be construed to change the substantive precedential law embodied in judicial decisions that are final as of January 1, 2002.

    SECTION 111. IC 33-3-5-14.2, AS ADDED BY P.L.198-2001, SECTION 100, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14.2. (a) The office of the attorney general shall represent a township assessor, a county assessor, a county auditor, a member of a county property tax assessment board of appeals, or a county property tax assessment board of appeals that:
        (1) made an original determination that is the subject of a judicial proceeding in the tax court; and
        (2) is a defendant in a judicial proceeding in the tax court.
    (b) Notwithstanding representation by the office of the attorney general, the duty of discovery is on the parties to the judicial proceeding.
    (c) Discovery conducted under subsection (b) shall be limited to production of documents from the administrative law judge presiding over the review under IC 6-1.1-15-3. The administrative law judge shall not be summoned to testify before the tax court unless verified proof is offered to the tax court that the impartiality of the administrative law judge was compromised concerning the review.
    (d) A township assessor, a county assessor, a county auditor, a member of a county property tax assessment board of appeals, or a county property tax assessment board of appeals:
         (1) may seek relief from the tax court to establish that the Indiana board of tax review rendered a decision that was:
            (1) (A) an abuse of discretion;
            (2) (B) arbitrary and capricious;
            (3) (C) contrary to substantial or reliable evidence; or
            (4) (D) contrary to law; and
        (2) may not be represented by the office of the attorney general in an action initiated under subdivision (1).

    SECTION 112. IC 34-6-2-38, AS AMENDED BY P.L.250-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 38. (a) "Employee" and "public employee", for purposes of section 91 of this chapter, IC 34-13-2, IC 34-13-3, IC 34-13-4, and IC 34-30-14, mean a person presently or formerly acting on behalf of a governmental entity, whether temporarily or permanently or with or without compensation, including members of boards, committees, commissions, authorities, and other

instrumentalities of governmental entities, volunteer firefighters (as defined in IC 36-8-12-2), and elected public officials.
    (b) The term also includes attorneys at law whether employed by the governmental entity as employees or independent contractors and physicians licensed under IC 25-22.5 and optometrists who provide medical or optical care to confined offenders (as defined in IC 11-8-1) within the course of their employment by or contractual relationship with the department of correction. However, the term does not include:
        (1) an independent contractor (other than an attorney at law, a physician, or an optometrist described in this section);
        (2) an agent or employee of an independent contractor;
        (3) a person appointed by the governor to an honorary advisory or honorary military position; or
        (4) a physician licensed under IC 25-22.5 with regard to a claim against the physician for an act or omission occurring or allegedly occurring in the physician's capacity as an employee of a hospital.
    (c) A physician licensed under IC 25-22.5 who is an employee of a governmental entity (as defined in IC 34-6-2-49) shall be considered a public employee for purposes of IC 34-13-3-3(21).
     (d) For purposes of IC 34-13-3 and IC 34-13-4, the term includes a person that engages in an act or omission before July 1, 2004, in the person's capacity as:
        (1) a contractor under IC 6-1.1-4-32;
        (2) an employee acting within the scope of the employee's duties for a contractor under IC 6-1.1-4-32;
        (3) a subcontractor of the contractor under IC 6-1.1-4-32 that is acting within the scope of the subcontractor's duties; or
        (4) an employee of a subcontractor described in subdivision (3) that is acting within the scope of the employee's duties.

    SECTION 113. IC 36-2-5-3, AS AMENDED BY P.L.198-2001, SECTION 104, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 3. (a) The county fiscal body shall fix the compensation of officers, deputies, and other employees whose compensation is payable from the county general fund, county highway fund, county health fund, county park and recreation fund, aviation fund, or any other fund from which the county auditor issues warrants for compensation. This includes the power to:
        (1) fix the number of officers, deputies, and other employees;
        (2) describe and classify positions and services;
        (3) adopt schedules of compensation; and
        (4) hire or contract with persons to assist in the development of

schedules of compensation.
    (b) The county fiscal body shall fix the annual compensation of provide for a county assessor or elected township assessor who has attained a level two certification under IC 6-1.1-35.5 at an amount that is to receive annually one thousand dollars ($1,000), more than which is in addition to and not part of the annual compensation of an the assessor. who has not attained a level two certification. The county fiscal body shall fix the annual compensation of provide for a county or township deputy assessor who has attained a level two certification under IC 6-1.1-35.5 at an amount that is to receive annually five hundred dollars ($500), more than which is in addition to and not part of the annual compensation of a the county or township deputy assessor. who has not attained a level two certification.
    (c) Notwithstanding subsection (a), the board of each local health department shall prescribe the duties of all its officers and employees, recommend the number of positions, describe and classify positions and services, adopt schedules of compensation, and hire and contract with persons to assist in the development of schedules of compensation.
    (d) This section does not apply to community corrections programs (as defined in IC 11-12-1-1 and IC 35-38-2.6-2).
    SECTION 114. IC 36-2-5-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. The compensation of an elected county officer may not be changed in the year for which it is fixed. The compensation of other county officers, deputies, and employees or the number of each may be changed at any time on:
        (1) the application of the county fiscal body or the affected officer, department, commission or agency; and
        (2) a two-thirds (2/3) majority vote of the county fiscal body.
    SECTION 115. IC 36-2-9-20 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 20. The county auditor shall:
        (1) maintain an electronic data file of the information contained on the tax duplicate for all:

             (A) parcels; and
            (B) personal property returns;
        for each township in the county as of each assessment date;

        (2) maintain the file in the form required by:
            (A) the legislative services agency; and
            (B) the department of local government finance; and

         (3) transmit the data in the file with respect to the assessment

date of each year before October 1 of the year to:
            (A) the legislative services agency; and
            (B) the department of local government finance.

    SECTION 116. IC 36-7-13-2.4, AS AMENDED BY P.L.174-2001, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.4. Except as provided in section 10.7(c) of this chapter, as used in this chapter, "gross retail base period amount" means:
        (1) the aggregate amount of state gross retail and use taxes remitted under IC 6-2.5 by the businesses operating in the territory comprising a district during the full state fiscal year that precedes the date on which:
            (A) an advisory commission on industrial development adopted a resolution designating the district, in the case of a district that is not described in section 12(c) of this chapter; or
            (B) the legislative body of a county or municipality adopts an ordinance designating a district under section 10.5 of this chapter; or
        (2) an amount equal to:
            (A) the aggregate amount of state gross retail and use taxes remitted:
                (i) under IC 6-2.5 by the businesses operating in the territory comprising a district; and
                (ii) during the month in which an advisory commission on industrial development adopted a resolution designating the district; multiplied by
            (B) twelve (12);
        in the case of a district that is described in section 12(c) of this chapter.
    SECTION 117. IC 36-7-13-3.2, AS AMENDED BY P.L.174-2001, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.2. Except as provided in section 10.7(d) of this chapter, as used in this chapter, "income tax base period amount" means:
        (1) the aggregate amount of state and local income taxes paid by employees employed in the territory comprising a district with respect to wages and salary earned for work in the district for the state fiscal year that precedes the date on which:
            (A) an advisory commission on industrial development adopted a resolution designating the district, in the case of a district that is not described in section 12(c) of this chapter; or
            (B) the legislative body of a county or municipality adopts an

ordinance designating a district under section 10.5 of this chapter; or
        (2) an amount equal to:
            (A) the aggregate amount of state and local income taxes paid by employees employed in the territory comprising a district with respect to wages and salary earned for work in the district during the month in which an advisory commission on industrial development adopted a resolution designating the district; multiplied by
            (B) twelve (12);
        in the case of a district that is described in section 12(c) of this chapter.
    SECTION 118. IC 36-7-13-10.5, AS ADDED BY P.L.174-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.5. (a) This section applies only to a county that meets the following conditions:
        (1) The county's annual rate of unemployment has been above the average annual statewide rate of unemployment during at least three (3) of the preceding five (5) years.
        (2) The median income of the county has:
            (A) declined over the preceding ten (10) years; or
            (B) has grown at a lower rate than the average annual statewide growth in median income during at least three (3) of the preceding five (5) years.
        (3) The population of the county (as determined by the legislative body of the county) has declined over the preceding ten (10) years.
    (b) Except as provided in section 10.7 of this chapter, in a county described in subsection (a), the legislative body of the county may adopt an ordinance designating an unincorporated part or unincorporated parts of the county as a district, and the legislative body of a municipality located within the county may adopt an ordinance designating a part or parts of the municipality as a district, if the legislative body finds all of the following:
        (1) The area to be designated as a district contains a building or buildings that:
            (A) have in aggregate, a total of at least fifty thousand (50,000) square feet of usable interior floor space; and
            (B) are vacant or will become vacant due to the relocation of the employer or the ceasing cessation of operations on the site by the employer.
        (2) Significantly fewer persons are employed in the area to be

designated as a district than were employed in the area during the year that is ten (10) years previous to the current year.
        (3) There are significant obstacles to redevelopment in the area due to any of the following problems:
            (A) Obsolete or inefficient buildings.
            (B) Aging infrastructure or inefficient utility services.
            (C) Utility relocation requirements.
            (D) Transportation or access problems.
            (E) Topographical obstacles to redevelopment.
            (F) Environmental contamination or remediation.
    (c) A legislative body adopting an ordinance under subsection (b) shall designate the duration of the district. However, the duration may not exceed fifteen (15) years from the time of designation.
    (d) Except as provided in section 10.7 of this chapter, upon adoption of an ordinance designating a district, the legislative body shall submit the ordinance to the budget committee for review and recommendation to the budget agency.
    (e) Except as provided in section 10.7 of this chapter, when considering the designation of a district by an ordinance adopted under this section, the budget committee and the budget agency must make the following findings before approving the designation of the district:
        (1) The area to be designated as a district meets the conditions necessary for the designation as a district.
        (2) The designation of the district will benefit the people of Indiana by protecting or increasing state and local tax bases and tax revenues for at least the duration of the district.
    (f) Except as provided in section 10.7 of this chapter, the income tax incremental amount and the gross retail incremental amount may not be allocated to the district until the budget agency approves the designation of the district by the local ordinance.
    SECTION 119. IC 36-7-13-10.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.7. (a) This section applies to a district designated under section 10.5 of this chapter and approved by the budget agency before January 1, 2002, in a city having a population of more than thirty-one thousand (31,000) but less than thirty-two thousand (32,000).
    (b) An area is added to and becomes part of a district described in subsection (a) if the area consists of property that:
        (1) is located in a city having a population of more than thirty-one thousand (31,000) but less than thirty-two thousand (32,000); and


        (2) experienced a loss of at least three hundred (300) jobs during the calendar year ending December 31, 2001.
    (c) After the addition of property to a district described in subsection (a) under this section, the gross retail base period amount determined under section 2.4 of this chapter for the district before the addition of the property to the district under this section shall be increased by an amount equal to:

         (1) the aggregate amount of state gross retail and use taxes remitted:
            (A) under IC 6-2.5 by the businesses operating in the area added to the district under subsection (b); and
            (B) during the period beginning after December 31, 2001, and ending before February 1, 2002; multiplied by
        (2) twelve (12).
    (d) After the addition of property to a district described in subsection (a) under this section, the income tax base period amount determined under section 3.2 of this chapter for the district before the addition of the property to the district under this section shall be increased by an amount equal to:
        (1) the aggregate amount of state and local income taxes paid:
            (A) by employees employed in the area added to the district under subsection (b) with respect to wages and salary earned for work in the area added; and
            (B) during the period beginning after December 31, 2001, and ending before February 1, 2002; multiplied by
        (2) twelve (12).
    (e) The addition of property to a district under this section does not require adoption of an ordinance, review by the budget committee, or approval of the budget agency under section 10.5 of this chapter.

    SECTION 120. IC 36-7-26-1, AS AMENDED BY P.L.291-2001, SECTION 200, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2002 (RETROACTIVE)]: Sec. 1. This chapter applies to the following:
        (1) A city having a population of more than seventy-five thousand (75,000) but less than ninety thousand (90,000).
        (2) A city having a population of more than ninety thousand (90,000) but less than one hundred ten thousand (110,000). one hundred five thousand (105,000) but less than one hundred twenty thousand (120,000).
        (3) A city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand

(500,000).
        (4) A city having a population of more than one hundred twenty thousand (120,000) but less than one hundred fifty thousand (150,000).
    SECTION 121. IC 36-7-26-23, AS AMENDED BY P.L.291-2001, SECTION 202, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2002 (RETROACTIVE)]: Sec. 23. (a) Before the first business day in October of each year, the board shall require the department to calculate the net increment for the preceding state fiscal year. The department shall transmit to the board a statement as to the net increment in sufficient time to permit the board to review the calculation and permit the transfers required by this section to be made on a timely basis.
    (b) There is established a sales tax increment financing fund to be administered by the treasurer of state. The fund is comprised of two (2) accounts called the net increment account and the credit account.
    (c) On the first business day in October of each year, that portion of the net increment calculated under subsection (a) that is needed:
        (1) to pay debt service on the bonds issued under section 24 of this chapter or to pay lease rentals under section 24 of this chapter; and
        (2) to establish and maintain a debt service reserve established by the commission or by a lessor that provides local public improvements to the commission;
shall be transferred to and deposited in the fund and credited to the net increment account. Money credited to the net increment account is pledged to the purposes described in subdivisions (1) and (2), subject to the other provisions of this chapter.
    (d) On the first business day of October in each year, the remainder of:
        (1) eighty percent (80%) of the gross increment; minus
        (2) the amount credited to the net increment account on the same date;
shall be transferred and credited to the credit account.
    (e) The remainder of:
        (1) the gross increment; minus
        (2) the amounts credited to the net increment account and the credit account;
shall be deposited by the auditor of state as other gross retail and use taxes are deposited.
    (f) A city described in section 1(2), 1(3), or 1(4) of this chapter may receive not more than fifty percent (50%) of the net increment each

year. During the time a district exists in a city described in section 1(2), 1(3) or 1(4) of this chapter, not more than a total of one million dollars ($1,000,000) of net increment may be paid to the city described in section 1(2), 1(3) or 1(4) of this chapter. During each year that a district exists in a city described in section 1(2) of this chapter, not more than one million dollars ($1,000,000) of net increment may be paid to the city described in section 1(2) of this chapter.
    (g) The auditor of state shall disburse all money in the fund that is credited to the net increment account to the commission in equal semiannual installments on November 30 and May 31 of each year.
    SECTION 122. IC 36-7-26-24, AS AMENDED BY P.L.185-2001, SECTION 9, AND AS AMENDED BY P.L.291-2001, SECTION 203, IS AMENDED AND CORRECTED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2002 (RETROACTIVE)]: Sec. 24. (a) The commission may issue bonds, payable in whole or in part, from money distributed from the fund to the commission, to finance a local public improvement under IC 36-7-14-25.1 or may make lease rental payments for a local public improvement under IC 36-7-14-25.2 and IC 36-7-14-25.3. The term of any bonds issued under this section may not exceed twenty (20) years, nor may the term of any lease agreement entered into under this section exceed twenty (20) years. The commission shall transmit to the board a transcript of the proceedings with respect to the issuance of the bonds or the execution and delivery of a lease agreement as contemplated by this section. The transcript must include a debt service or lease rental schedule setting forth all payments required in connection with the bonds or the lease rentals.
    (b) On January 15 of each year, the commission shall remit to the treasurer of state the money disbursed from the fund that is credited to the net increment account that exceeds the amount needed to pay debt service or lease rentals and to establish and maintain a debt service reserve under this chapter in the prior year and before May 31 of that year. Amounts remitted under this subsection shall be deposited by the auditor of state as other gross retail and use taxes are deposited.
    (c) The commission in a city described in section 1(2) of this chapter may only distribute money from the fund only for the following:
        (1)
Road, interchange, and right-of-way improvements. and for
         (2) Acquisition costs of a commercial retail facility and for real property acquisition costs in furtherance of the road, interchange, and right-of-way improvements.
        (3) Demolition of commercial property and any related expenses incurred before or after the demolition of the

commercial property.
        (4) For physical improvements or alterations of property that enhance the commercial viability of the district.

    (d) The commission in a city described in section 1(3) of this chapter may distribute money from the fund only for the following purposes:
        (1) For road, interchange, and right-of-way improvements and for real property acquisition costs in furtherance of the road, interchange, and right-of-way improvements.
        (2) For the demolition of commercial property and any related expenses incurred before or after the demolition of the commercial property.
    (e) The commission in a city described in section 1(4) of this chapter may distribute money from the fund only for the following purposes:
        (1) For:
            (A) the acquisition, demolition, and renovation of property; and
            (B) site preparation and financing;
        related to the development of housing in the district.
        (2) For physical improvements or alterations of property that enhance the commercial viability of the district.
    SECTION 123. IC 36-7-31.3-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. Except as provided in section 8(b) of this chapter, this chapter applies only to a city or a county without a consolidated city that has a professional sports franchise playing the majority of its home games in a facility owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11.
    SECTION 124. IC 36-7-31.3-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 4. As used in this chapter, "covered taxes" means the part of the following taxes attributable to the operation of a facility designated as part of a tax area under section 8 of this chapter:
        (1) The state gross retail tax imposed under IC 6-2.5-2-1 or use tax imposed under IC 6-2.5-3-2.
        (2) An adjusted gross income tax imposed under IC 6-3-2-1 on an individual.
        (3) A county option income tax imposed under IC 6-3.5.
        (4) Except in a county having a population of more than three hundred thousand (300,000) but less than four hundred thousand (400,000), a food and beverage tax imposed under

IC 6-9.
    SECTION 125. IC 36-7-31.3-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 5.5. As used in this chapter, "designating body" means a:
        (1) city legislative body; or
        (2) county legislative body;
that may establish a tax area under this chapter.

    SECTION 126. IC 36-7-31.3-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. (a) Except as provided in subsection (d), a city or county legislative designating body may establish designate as part of a professional sports and convention development area any facility that is:
        (1) owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11, and used by a professional sports franchise for practice or competitive sporting events; or
        (2) owned by the city, the county, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11, and used as one (1) of the following:
            (A) A facility used principally
for convention or tourism related events serving national or regional markets.
            (B) An airport.
            (C) A museum.
            (D) A zoo.
            (E) A facility used for public attractions of national significance.
            (F) A performing arts venue.
            (G) A county courthouse registered on the National Register of Historic Places.

A facility may not include a private golf course or related improvements. The tax area may include only facilities described in this section and any parcel of land on which the a facility is located. An area may contain noncontiguous tracts of land within the city, or county, or school corporation.
    (b) Except for a tax area that is located in a city having a population of:
        (1) more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000); or

         (2) more than ninety thousand (90,000) but less than one hundred five thousand (105,000);
a tax area must include at least one (1) facility described in

subsection (a)(1).
    (c) Except as provided in subsection (d), a tax area may contain other facilities not owned by the designating body if:
        (1) the facility is owned by a city, the county, a school corporation, or a board established under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11; and
        (2) an agreement exists between the designating body and the owner of the facility specifying the distribution and uses of the covered taxes to be allocated under this chapter.

     (d) In a city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000), the designating body may designate only one (1) facility as part of a tax area. The facility designated as part of the tax area may not be a facility described in subsection (a)(1).
    SECTION 127. IC 36-7-31.3-9, AS AMENDED BY P.L.174-2001, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. (a) A tax area must be initially established by resolution:
        (1) except as provided in subdivision (2), before July 1, 1999; or
        (2) in the case of a second class city, before July 1, 2002; 2003;
according to the procedures set forth for the establishment of an economic development area under IC 36-7-14. A tax area may be changed or the terms governing the tax area revised in the same manner as the establishment of the initial tax area. Only one (1) tax area may be created in each county.
    (b) In establishing the tax area, the city or county legislative designating body must make the following findings instead of the findings required for the establishment of economic development areas:
        (1) Except for a tax area in a city having a population of:
            (A) more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000); or

             (B) more than ninety thousand (90,000) but less than one hundred five thousand (105,000);
        there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used
            (A) by a professional sports franchise for practice or
            (B) for convention or tourism related events. competitive sporting events.
         A tax area to which this subdivision applies may also include a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a)(2) of this chapter.


        (2) For a tax area in a city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000), there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a) of this chapter.
         (3) For a tax area in a city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000), there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a)(2) of this chapter.
         (4) The capital improvement that will be undertaken or that has been undertaken in the tax area will benefit the public health and welfare and will be of public utility and benefit.
        (3) (5) The capital improvement that will be undertaken or that has been undertaken in the tax area will protect or increase state and local tax bases and tax revenues.
    (c) The tax area established under this chapter is a special taxing district authorized by the general assembly to enable the designating body to provide special benefits to taxpayers in the tax area by promoting economic development that is of public use and benefit.
    SECTION 128. IC 36-7-31.3-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. Upon adoption of a resolution establishing a tax area under section 10 of this chapter, the city or county legislative designating body shall submit the resolution to the budget committee for review and recommendation to the budget agency.
    SECTION 129. IC 36-7-31.3-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 13. When the city or county legislative designating body adopts an allocation provision, the county auditor shall notify the department by certified mail of the adoption of the provision and shall include with the notification a complete list of the following:
        (1) Employers in the tax area.
        (2) Street names and the range of street numbers of each street in the tax area.
The county auditor shall update the list before July 1 of each year.
    SECTION 130. IC 36-7-31.3-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17. The department shall notify the county auditor of the amount of taxes to be distributed to the county treasurer. For tax areas described in section 8(c) of this

chapter, the department shall notify the county auditor of the amount of taxes to be distributed to each party to the agreement. The notice must specify the distribution and uses of covered taxes to be allocated under this chapter.
    SECTION 131. IC 36-7-31.3-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 19. The resolution establishing the tax area must designate the use of the funds. The funds are to be used only for the following:
        (1) Except in a tax area in a city having a population of:
            (A) more than one hundred fifty thousand (150,000) but less than five hundred thou        sand (500,000); or
            (B)
more than ninety thousand (90,000) but less than one hundred five thousand (105,000);
        a capital improvement that will construct or equip a facility
        (A) owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used by a professional sports franchise or
        (B) for practice or competitive sporting events. In a tax area to which this subdivision applies, funds may also be used for a capital improvement that will construct or equip a facility owned by the city, the county, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for convention and tourism related events; or any purpose specified in section 8(a)(2) of this chapter.
        (2) In a city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000), a capital improvement that will construct or equip a facility owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for any purpose specified in section 8(a) of this chapter.
         (3) In a city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000), a capital improvement that will construct or equip a facility owned by the city, the county, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for any purpose specified in section 8(a)(2) of this chapter.
         (4) The financing or refinancing of a capital improvement described in subdivision (1), (2), or (3) or the payment of lease payments for a capital improvement described in subdivision (1), (2), or (3).
    SECTION 132. IC 36-7-31.3-20 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 20. The city or county legislative designating body shall repay to the professional sports development area fund any amount that is distributed to the city or county legislative designating body and used for:
        (1) a purpose that is not described in this chapter; or
        (2) a facility or facility site other than the facility and facility site to which covered taxes are designated under the resolution described in section 10 of this chapter.
The department shall distribute the covered taxes repaid to the professional sports development area fund under this section proportionately to the funds and the political subdivisions that would have received the covered taxes if the covered taxes had not been allocated to the tax area under this chapter.
    SECTION 133. IC 36-8-11-26, AS AMENDED BY SEA 357-2002, SECTION 493, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 26. After a sufficient appropriation for the purchase of firefighting apparatus and equipment, including housing, is made and is available, the district's fiscal officer, with the approval of the board and the county fiscal body, may purchase the firefighting apparatus and equipment for the district on an installment conditional sale or mortgage contract running for a period not exceeding:
        (1) six (6) years; or
        (2) fifteen (15) years for a district that:
            (A) has a total assessed value of twenty sixty million dollars ($20,000,000) ($60,000,000) or less, as determined by the department of local government finance; and
            (B) is purchasing the firefighting equipment with funding from the:
                (i) state or its instrumentalities; or
                (ii) federal government or its instrumentalities.
The purchase shall be amortized in equal or approximately equal installments payable on January 1 and July 1 each year.
    SECTION 134. IC 36-8-13-5, AS AMENDED BY SEA 357-2002, SECTION 497, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 5. After a sufficient appropriation has been made and approved and is available for the purchase of firefighting apparatus and equipment, including housing, the township executive, with the approval of the township legislative body, may purchase it for the township on an installment conditional sale or mortgage contract running for a period not exceeding:


        (1) six (6) years; or
        (2) fifteen (15) years for a township that:
            (A) has a total assessed value of twenty sixty million dollars ($20,000,000) ($60,000,000) or less, as determined by the department of local government finance; and
            (B) is purchasing the firefighting equipment with funding from the:
                (i) state or its instrumentalities; or
                (ii) federal government or its instrumentalities.
The purchase shall be amortized in equal or approximately equal installments payable on January 1 and July 1 each year.
    SECTION 135. IC 36-8-19-8.7, AS AMENDED BY SEA 357-2002, SECTION 501, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 8.7. After a sufficient appropriation for the purchase of firefighting apparatus and equipment, including housing, is made and is available, the participating units, with the approval of the fiscal body of each participating unit, may purchase the firefighting apparatus and equipment for the territory on an installment conditional sale or mortgage contract running for a period not exceeding:
        (1) six (6) years; or
        (2) fifteen (15) years for a territory that:
            (A) has a total assessed value of twenty sixty million dollars ($20,000,000) ($60,000,000) or less, as determined by the department of local government finance; and
            (B) is purchasing the firefighting equipment with funding from the:
                (i) state or its instrumentalities; or
                (ii) federal government or its instrumentalities.
The purchase shall be amortized in equal or approximately equal installments payable on January 1 and July 1 each year.
    SECTION 136. IC 36-10-11-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. As used in this chapter:
    "Authority" refers to a building authority created under this chapter.
    "Building" means a structure or a part of a structure used for a civic center or a facility that is owned by the city and used by a professional sports franchise, including the site, landscaping, parking, heating facilities, sewage disposal facilities, and other related appurtenances and supplies necessary to make the building suitable for use and occupancy.
    "Governmental entity" means a state agency, state university, or

political subdivision.
    SECTION 137. IC 36-10-11-33 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 33. (a) The fiscal body of the lessee shall adopt an ordinance creating a board of five (5) members to be known as the "Civic Center Board of Managers". The board of managers shall supervise, manage, operate, and maintain the civic center a building and its programs.
    (b) A person appointed to the board of managers must be at least twenty-one (21) years of age and a resident of the lessee governmental entity for at least five (5) years. If the lessee is a city, three (3) of the managers shall be appointed by the city executive, and two (2) of the managers shall be appointed by the city legislative body. If the lessee is not a city, all five (5) managers shall be appointed by the fiscal body of the lessee. An officer or employee of a political subdivision may not serve as a manager. The managers serve for terms of three (3) years.
    (c) Notwithstanding subsection (b), if the lessee is a city, initial terms of the managers appointed by the executive are as follows:
        (1) One (1) manager for a term of one (1) year.
        (2) One (1) manager for a term of two (2) years.
        (3) One (1) manager for a term of three (3) years.
The initial term of one (1) of the managers appointed by the legislative body is two (2) years, and the other is three (3) years.
    (d) Notwithstanding subsection (b), if the lessee is not a city, initial terms of the managers are as follows:
        (1) One (1) manager for a term of one (1) year.
        (2) Two (2) managers for terms of two (2) years.
        (3) Two (2) managers for terms of three (3) years.
    (e) A manager may be removed for cause by the appointing authority. Vacancies shall be filled by the appointing authority, and any person appointed to fill a vacancy serves for the remainder of the vacated term. The managers may not receive salaries, but shall be reimbursed for any expenses necessarily incurred in the performance of their duties.
    (f) The board of managers shall annually elect officers to serve during the calendar year. The board of managers may adopt resolutions and bylaws governing its operations and procedure and may hold meetings as often as necessary to transact business and to perform its duties. A majority of the managers constitutes a quorum.
    SECTION 138. IC 36-10-11-34 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 34. The board of managers may do the following:
        (1) Receive and collect money due to or otherwise related to the

civic center; a building; employ an executive manager, an associate manager, and other agents and employees that are considered necessary for the fulfillment of its duties, and fix the compensation of all employees. However, a contract of employment or other arrangement must be terminable at the will of the board of managers, except that a contract may be entered into with an executive manager for a period not exceeding four (4) years and subject to extension or renewal for similar or shorter periods.
        (2) Let concessions for the operation of restaurants, cafeterias, public telephones, news and cigar stands, vending machines, caterers, and all other services considered necessary or desirable for the operation of the civic center. a building.
        (3) Lease a part of the civic center a building from time to time to any association, corporation, or individual, with or without the right to sublet.
        (4) Fix charges and establish rules governing the use and operation of the civic center. a building.
        (5) Accept gifts or contributions from individuals, corporations, limited liability companies, partnerships, associations, trusts, or foundations; accept funds, loans, or advances on the terms and conditions that the board of managers considers necessary or desirable from the federal government, the state, or any of their agencies or political subdivisions.
        (6) Receive and collect all money due to the use or leasing of the civic center a building or any part of it and from concessions or other contracts and expend that money for proper purposes.
        (7) Provide coverage for its employees under IC 22-3 and IC 22-4.
        (8) Purchase public liability and other insurance that it considers necessary.
        (9) Make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this chapter, including enforcement of them.
        (10) Maintain and repair the civic center a building and employ a building superintendent and other employees that are necessary to properly maintain the civic center. a building.
        (11) Prepare and publish descriptive materials and literature relating to the civic center a building and specifying the advantages of the civic center; a building; do all other acts and things that the board of managers considers necessary to promote and publicize the civic center a building and serve the commercial, industrial, and cultural interests of Indiana and all its

citizens by the use of the civic center; a building; and assist and cooperate with the state and other public, governmental, and private agencies and groups of citizens for those purposes.
        (12) Supervise, manage, operate, and maintain any other public facility owned or leased by the lessee governmental entity or by an agency of it when so directed by a resolution adopted by the fiscal body of the entity.
        (13) Exercise other powers and perform other duties not in conflict with this chapter that are specified by ordinance or resolution of the fiscal body of the lessee governmental entity.
        (14) Perform all other acts necessarily incidental to its duties and the powers listed in this section.
    SECTION 139. IC 36-10-11-35 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 35. (a) The board of managers shall prepare a budget for each calendar year governing the projected operating expenses, the estimated income, and reasonable reserves. It shall submit that budget for review, approval, or addition to the fiscal body of the lessee governmental entity.
    (b) The board of managers may not make expenditures except as provided in the approved budget, and all additional expenditures are subject to approval by the fiscal body of the entity.
    (c) Payments to the users of the civic center a building or a part of it that constitute a contractual share of box office receipts are not considered an operating expense or an expenditure within the meaning of this section, and the board of managers may make those payments without approval.
    SECTION 140. IC 36-10-11-36 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 36. (a) The fiscal officer of the lessee governmental entity shall act as controller of the board of managers and is responsible for proper safeguarding and accounting. The controller shall, with the approval of the board of managers, appoint an assistant to act as auditor for the board of managers.
    (b) The assistant is the official custodian of all books of account and other financial records of the board of managers and has the other powers and duties that are delegated by the controller and the lesser powers and duties that the board of managers prescribes. The assistant, and any other employee or member of the board of managers authorized to receive, collect, or expend money, shall give bond for the faithful performance and discharge of all duties required of him in an amount and with surety and other conditions that are prescribed and approved by the board of managers.


    (c) The assistant shall keep an accurate account of:
        (1) all money due the civic center a building and the board of managers; and
        (2) all money received, invested, and disbursed;
in accordance with generally recognized governmental accounting principles and procedures. All accounting forms and records shall be prescribed or approved by the state board of accounts. The assistant shall issue all warrants for the payment of money from the funds of the board of managers in accordance with procedures prescribed by the board of managers, but a warrant may not be issued for the payment of any claim until an itemized and verified statement of the claim has been filed with the controller, who may require evidence that all amounts claimed are justly due. All warrants shall be countersigned by the controller or financial officer or by the executive manager. Payroll and similar warrants may be executed with facsimile signatures.
    (d) If the board of managers or the lessee governmental entity has entered into any agreement to lease civic center building facilities from the authority, the controller shall pay the lease rental to the authority within a reasonable period before the date on which principal or interest on any bonds outstanding issued under this chapter becomes due. The assistant shall submit to the board of managers at least annually a report of his accounts exhibiting the revenues, receipts, and disbursements and the sources from which the revenues and receipts were derived and the purpose and manner in which the disbursements were made. The board of managers may require that the report be prepared by a designated, independent certified public accountant. Handling and expenditure of funds is subject to audit and supervision by the state board of accounts.
    SECTION 141. IC 2-5-1.1-18 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18. There is annually appropriated to legislative employers (as defined in IC 5-10-8) from the fund established under section 17 of this chapter sufficient funds to pay for employer paid benefit charges or premiums arising as a result of elections made by legislative employers under IC 5-10-8.
    SECTION 142. THE FOLLOWING ARE REPEALED [EFFECTIVE UPON PASSAGE]: IC 6-1.1-33; IC 6-1.1-38.
    SECTION 143. P.L.198-2001, SECTION 117, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001 (RETROACTIVE)]: SECTION 117. (a) IC 6-1.1-15-3 and IC 6-1.1-15-4, both as amended by this act, P.L.198-2001, apply to

petitions for review filed under IC 6-1.1-15-3, as amended by this act, P.L.198-2001, with respect to notices of action of the county property tax assessment board of appeals issued after December 31, 2001.
    (b) IC 6-1.1-15-5 and IC 6-1.1-15-6, both as amended by this act, P.L.198-2001, apply to petitions for judicial review of final determinations issued under IC 6-1.1-15-4, as amended by this act, P.L.198-2001, after December 31, 2001.


    (c) Petitions for review filed under IC 6-1.1-15-3 with respect to notices of action of the county property tax assessment board of appeals issued before January 1, 2002, that are pending before the state board of tax commissioners on December 31, 2001:
        (1) are transferred to the Indiana board of tax review; and
        (2) are subject to the law in effect before amendments under this act. P.L.198-2001.
The state board of tax commissioners shall transfer to the Indiana board of tax review by January 1, 2002, the records relating to each petition for review referred to in this subsection.
    (d) Except as provided in subsection (e), appeals initiated under IC 6-1.1-15-5 of final determinations of the state board of tax commissioners issued before January 1, 2002, are subject to the law in effect before amendments under this act. P.L.198-2001.
    (e) Appeals initiated under IC 6-1.1-15-5 of final determinations of the state board of tax commissioners issued after June 30, 2001, and before January 1, 2002, are subject to IC 33-3-5-14.7, as added by P.L.198-2001.
     (f) IC 33-3-5-14, as amended by this act, P.L.198-2001, and IC 33-3-5-14.2, IC 33-3-5-14.5, and IC 33-3-5-14.8, all as added by this act, P.L.198-2001, apply to appeals initiated under IC 6-1.1-15-5, as amended by this act, P.L.198-2001, of final determinations of the Indiana board of tax review issued after December 31, 2001.
    (f) (g) The following, each as amended by this act, P.L.198-2001, apply to refunds on refund claims filed after December 31, 2001:
        IC 6-1.1-26-2
        IC 6-1.1-26-3
        IC 6-1.1-26-4
        IC 6-1.1-26-5.
    SECTION 144. [EFFECTIVE UPON PASSAGE] The appointment by the governor of the commissioner of the department of local government finance before the effective date of this act is legalized and validated as if the appointment had been made on or after the effective date of this act.
    SECTION 145. [EFFECTIVE JANUARY 1, 2002

(RETROACTIVE)] (a) IC 6-1.1-12.1-4.5, as amended by this act, applies only to property taxes first due and payable after December 31, 2002.
    (b) This SECTION expires January 1, 2004.

    SECTION 146. [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)] (a) IC 13-21-3-15.5, as added by this act, applies to property taxes first due and payable after December 31, 2001.
    (b) The following, all as amended by this act, apply to property taxes first due and payable after December 31, 2001:
        IC 6-1.1-17-3
        IC 6-1.1-17-5
        IC 6-1.1-17-13
        IC 6-1.1-18.5-9.8
        IC 6-1.1-18.5-12
        IC 6-1.1-19-2
        IC 8-16-3.1-4
        IC 13-21-3-12
        IC 21-2-15-11
        IC 36-8-11-26
        IC 36-8-13-5
        IC 36-8-19-8.7.

     (c) IC 6-1.1-20-1.1, IC 6-1.1-20-3.1, and IC 6-1.1-20-3.2, all as amended by this act, apply to bonds and leases for which notice under IC 6-1.1-20-3.1, as amended by this act, is published and sent after June 30, 2002.
     (d) This SECTION expires January 1, 2003.
    SECTION 147. [EFFECTIVE JULY 1, 2002] IC 6-2.5-5-13(d)(2), as added by this act, applies to retail transactions occurring after June 30, 2002.
    SECTION 148. [EFFECTIVE UPON PASSAGE] (a) Notwithstanding IC 36-7-13-13(a), the legislative body of a unit that designates a community revitalization enhancement district described in IC 36-7-13-10.7(a), as added by this act, shall send to the department of state revenue by certified mail the updated list:
        (1) required under IC 36-7-13-13(a); and
        (2) listing the:
            (A) employers in the district; and
            (B) street names and the range of street numbers of each street in the district;
after the addition of property to the district under IC 36-7-13-10.7(b), as added by this act, not later than May 31, 2002.


    (b) Notwithstanding IC 36-7-13-13(b), the department of state revenue shall calculate the:
        (1) gross retail base period amount for the district described in subsection (a) as required under IC 36-7-13-10.7(c), as added by this act; and
        (2) income tax base period amount for the district described in subsection (a) as required under IC 36-7-13-10.7(d), as added by this act;
not later than June 30, 2002.
    (c) Notwithstanding IC 36-7-13-14, for the state fiscal year ending June 30, 2002, the department of state revenue shall calculate the:
        (1) gross retail incremental amount for the district described in subsection (a) using the gross retail base period amount determined under subsection (b)(1); and
        (2) income tax incremental amount for the district described in subsection (a) using the income tax base period amount determined under subsection (b)(2).

     (d) This SECTION expires June 30, 2003.
    SECTION 149. [EFFECTIVE JULY 1, 2002] IC 4-33-12-6, as amended by this act, applies to riverboat admissions taxes collected after June 30, 2002.
    SECTION 150. [EFFECTIVE JANUARY 1, 2001 (RETROACTIVE)] (a) This SECTION applies notwithstanding:
        (1) IC 6-1.1-3-7.5;
        (2) IC 6-1.1-10-31.1;
        (3) IC 6-1.1-11;
        (4) 50 IAC 4.2-12-1;
        (5) 50 IAC 16-3-2; and
        (6) 50 IAC 16-4-1.
    (b) For purposes of this SECTION, "taxpayer" means a taxpayer that filed a personal property tax return under IC 6-1.1-3 for the March 1, 2001, assessment date:
        (1) in a township having a population of more than ninety-three thousand (93,000) but less than one hundred ten thousand (110,000) located in a county containing a consolidated city; and
        (2) on which the taxpayer reported a total assessed value of personal property of more than fifty-five million dollars ($55,000,000) and less than fifty-six million dollars ($56,000,000).
    (c) A taxpayer may before January 1, 2003, file an amended

personal property tax return for the March 1, 2001, assessment date.
    (d) With respect to an amended personal property tax return filed under subsection (c), a taxpayer is entitled to an exemption of tangible personal property under IC 6-1.1-10-29, IC 6-1.1-10-29.3, and IC 6-1.1-10-30 based on:
        (1) the total cost of inventory reported on Schedule B of the Form 103 filed as part of the amended personal property tax return; and
        (2) the ratio reported on the Form 103W filed as part of the taxpayer's return referred to in subsection (b).
    (e) A taxpayer shall pay taxes first due and payable in 2002 based on the assessed value of personal property reported in the amended personal property tax return filed under subsection (c).
    (f) This SECTION applies only to personal property taxes first due and payable in 2002.
    (g) This SECTION expires January 1, 2003.

    SECTION 151. [EFFECTIVE UPON PASSAGE] (a) The definitions contained in IC 6-1.1-12.1 apply to this SECTION.
    (b) This SECTION applies to a property owner who:
        (1) is located in an economic revitalization area situated in a county having a population of more than one hundred forty-eight thousand (148,000) but less than one hundred seventy thousand (170,000);
        (2) during February 1999, was determined by a designating body to be entitled to receive deductions for redevelopment or rehabilitation of real property under IC 6-1.1-12.1-3;
        (3) has substantially complied with the statement of benefits filed under IC 6-1.1-12.1-3, including job creation or retention, capital investment, and any other requirements imposed by the designating body; and
        (4) failed to timely file deduction applications under IC 6-1.1-12.1-5 for the property tax deduction under IC 6-1.1-12.1-3 with respect to deductions for property taxes first due and payable in 2002.
    (c) Notwithstanding IC 6-1.1-12.1, the property owner is entitled to the deductions described in subsection (b)(4) for property taxes first due and payable in 2002 if, before June 1, 2002, the property owner files the deduction applications that would have been necessary to obtain those deductions under IC 6-1.1-12.1.
    (d) Assessed value deductions granted under this SECTION apply to the property owner's property taxes first due and payable

in 2002.
    (e) This SECTION expires December 31, 2003.

    SECTION 152. [EFFECTIVE JANUARY 1, 2003] (a) The excessive tax levy collected as a result of the approval of a referendum held under IC 6-1.1-19-4.5 (as effective January 1, 2002, or as amended by SEA 175-2002) in 2002 is considered a referendum tax levy to which the following apply:
        (1) IC 6-1.1-19-4.5, IC 6-1.1-21-2, IC 21-3-1.7-3.1, IC 21-3-1.7-5, IC 21-3-1.7-6.8, and IC 21-3-1.7-8, all as amended by SEA 175-2002 and this act; and
        (2) IC 21-2-11.6, as added by SEA 175-2002.
    (b) To the extent possible, if there is a conflict between the provisions of SEA 175-2002 and this act, it is the intent of the general assembly that the two acts be read together and the policies in both acts be implemented into law.

    SECTION 153. [EFFECTIVE JANUARY 1, 2000 (RETROACTIVE)]: (a) IC 6-1.1-10-42, as added by this act, applies only to property taxes first due and payable after December 31, 2000.
    (b) This SECTION expires January 1, 2003.

    SECTION 154. [EFFECTIVE UPON PASSAGE] (a) This SECTION applies to each SECTION under this act that:
        (1) takes effect upon passage; and
        (2) contains an amendment to a population parameter.
    (b) The amendment to a population parameter described in subsection (a) takes effect April 1, 2002, and the amendment to other provisions in a SECTION described in subsection (a) takes effect upon passage of this act.
"
    SECTION 155. [EFFECTIVE UPON PASSAGE] (a) Notwithstanding P.L.29-2001, SECTION 5, the total operating expense for all universities shall be reduced by $29,000,000 for FY 2002-2003. The amount of the reduction for each main and regional campus equals the amount determined under STEP FOUR of the following formula:
        STEP ONE: Determine the amount of the total operating appropriation to the campus.
        STEP TWO: Determine the amount of the total operating appropriations for all university campuses.
        STEP THREE: Divide the STEP ONE amount by the STEP TWO amount.
        STEP FOUR: Multiply the STEP THREE amount by $29,000,000.


     (b) Notwithstanding P.L.29-2001, SECTIONS 5 and 38, and any other law, universities may use a part of the money allocated to them from the appropriation from the BUILD INDIANA FUND (BIF) (IC 4-30-27), FOR THE BUDGET AGENCY, Higher Education Technology, for operating expenses to defray the reductions under subsection (a). The amount available for operating expense may not exceed a total of $29,000,000. The formula in subsection (a) shall be used to determine the amount main and regional campuses shall receive.
    SECTION 156. [EFFECTIVE JULY 1, 2002] (a) Notwithstanding P.L.291-2001, SECTION 4, the appropriation FOR THE DEPARTMENT OF EDUCATION, DISTRIBUTION FOR TUITION SUPPORT, General Fund, Total Operating Expense for the state fiscal year beginning July 1, 2002, and ending June 30, 2003, is $1,950,029,212 and not $2,009,587,850.
    (b) Notwithstanding P.L.291-2001, SECTION 4, the appropriation FOR THE DEPARTMENT OF EDUCATION, DISTRIBUTION FOR TUITION SUPPORT, Property Tax Relief Fund, Total Operating Expense for the state fiscal year beginning July 1, 2002, and ending June 30, 2003, is $1,463,506,512 and not $1,523,065,150.

    SECTION 157. An emergency is declared for this act.


HEA 1196 _ CC 1

Figure

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