February 18, 2003





HOUSE BILL No. 1002

_____


DIGEST OF HB 1002 (Updated February 12, 2003 8:25 PM - DI 44)



Citations Affected: IC 4-4; IC 4-12; IC 8-9.5; IC 12-10; IC 20-12; IC 25-22.5; noncode.

Synopsis: Securitization of tobacco settlement funds. Establishes the tobacco settlement authority and provides for the sale of bonds payable from future tobacco settlement payments to the state. Establishes procedures to be followed by the authority when entering into contracts for certain services related to the issuance and sale of bonds. Makes related changes in the statute governing distributions from the tobacco master settlement agreement fund. Makes certain continuing and temporary appropriations from the tobacco master settlement agreement fund and authorizes the expenditure of money from the fund in excess of the statutory spending limit if the total of those appropriations exceeds that limit. Increases the income ceiling for eligibility for the Hoosier Rx program from 135% to 185% of the federal poverty guideline. Establishes a health professions scholarship program. Appropriates money from the tobacco master settlement agreement fund to the tobacco settlement authority.

Effective: July 1, 2003.





Brown C, Murphy , Becker




    January 15, 2003, read first time and referred to Committee on Public Health.
    February 17, 2003, amended, reported _ Do Pass. Recommitted to Committee on Ways and Means.






February 18, 2003

First Regular Session 113th General Assembly (2003)


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

HOUSE BILL No. 1002



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

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

SOURCE: IC 4-4-31; (03)HB1002.1.1. -->     SECTION 1. IC 4-4-31 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 31. Tobacco Settlement Authority
    Sec. 1. As used in this chapter, "authority" refers to the tobacco settlement authority created in this chapter.
    Sec. 2. As used in this chapter, "board" refers to the governing board of the authority.
    Sec. 3. As used in this chapter, "bonds" means bonds, notes, and any other obligations and financing arrangements issued or entered into by the authority under this chapter, and any such bonds, notes, obligations, or other financing arrangements entered into to refund the foregoing, whether on a current or an advance basis.
    Sec. 4. As used in this chapter, "financing costs" means capitalized interest, capitalized operating expenses, debt service reserves, operating reserves, and any cost of issuance, credit

enhancement, swap agreement under IC 8-9.5-9, or item of expense directly or indirectly payable or reimbursable by the authority and related to the authorization, sale, or issuance of the bonds, including, but not limited to, underwriting fees and fees and expenses for professional consultants and fiduciaries.
    Sec. 5. As used in this chapter, "master settlement agreement" has the meaning set forth in IC 24-3-3-6.
    Sec. 6. As used in this chapter, "net proceeds" means the amount of proceeds remaining following each sale of bonds that is not required by the authority to pay the financing costs.
    Sec. 7. As used in this chapter, "qualifying statute" has the meaning set forth in the master settlement agreement. For purposes of this chapter, IC 24-3-3 is the qualifying statute.
    Sec. 8. As used in this chapter, "residual interests" means the income of the authority that is in excess of the authority's requirements for its reserve fund or to pay its operating expenses, debt service, whether at maturity or upon redemption, or any other contractual obligations under any resolution or that may be incurred in connection with the issuance of the bonds.
    Sec. 9. As used in this chapter, "sales agreement" means any agreement authorized under this chapter in which the state sells to the authority a portion of the amounts and revenues required to be paid by tobacco product manufacturers to the state and the state's rights to receive the amounts and revenues under the master settlement agreement.
    Sec. 10. As used in this chapter, "state" means the state of Indiana, acting by and through its budget agency, or any other state agency, state office, or state officer required by law or contract to act on behalf of the state of Indiana for a particular purpose.
    Sec. 11. (a) The general assembly declares it to be the public policy of the state and a recognized governmental function to assist in securitizing the revenue stream from the master settlement agreement between the state and tobacco product manufacturers in order to provide a current and reliable source of revenue for the state. The purpose of this chapter is to establish a tobacco settlement authority having the power to purchase certain rights of the state under the master settlement agreement and to issue nonrecourse revenue bonds.
    (b) This chapter, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof.


    (c) The general assembly hereby finds that the following activities are necessary and proper and serve a public purpose or purposes through the promotion of economic development, education, health and general welfare, and will be of benefit to the health and general welfare of the state and its citizens:
        (1) The creation of the authority.
        (2) Entering into one (1) or more sales agreements.
        (3) The sale to the authority of a portion of the amounts and revenues required to be paid by tobacco product manufacturers to the state and the state's right to receive the amounts and revenues under the master settlement agreement.
        (4) The issuance of bonds.
    Sec. 12. The tobacco settlement authority is established, and is a public body corporate and politic, separate from the state, and not a state agency. The exercise by the authority of its powers constitutes an essential public and governmental function.
    Sec. 13. (a) The powers of the authority are vested in and shall be exercised by a board consisting of the following nine (9) members:
        (1) The governor, or the governor's designee, who serves as chairperson.
        (2) The lieutenant governor, or the lieutenant governor's designee, who serves as vice chairperson.
        (3) The treasurer of state, or the treasurer of state's designee.
        (4) Four (4) members appointed by the governor who are persons of known probity and who possess adequate capacity for the performance of the duties of members of the authority. Not more than two (2) of the members appointed under this subdivision may be members of the same political party.
        (5) Two (2) members appointed by the governor, from recommendations made by the speaker of the house of representatives and the president pro tempore of the senate, who are persons of known probity and who possess adequate capacity for the performance of the duties of members of the authority. The speaker of the house of representatives and the president pro tempore of the senate shall each make at least two (2) recommendations to the governor. The members appointed under this subdivision may not be from the same political party.
    (b) The board shall elect from among the board's members the other officers the board considers necessary or convenient.
    (c) The term of the members of the board appointed by the governor shall be four (4) years from the date of their appointment, except that the terms of two (2) of the initial appointees, as determined by the governor, shall be for two (2) years from the date of their appointment.
    (d) Each member of the board appointed by the governor:
        (1) shall hold office for the term of the member's respective appointment;
        (2) shall continue to serve after the expiration of the appointment until a successor is appointed and qualified;
        (3) is eligible for reappointment; and
        (4) serves at the pleasure of the governor and may be removed from office by the governor at any time.
    (e) The members of the board are not entitled to any compensation for their services but are entitled to reimbursement for actual and necessary expenses on the same basis as state employees.
    Sec. 14. Five (5) members of the board constitute a quorum. Five (5) affirmative votes are required for the board to take action.
    Sec. 15. Meetings of the board shall be held in accordance with IC 5-14-1.5 and at the call of the chair or when a majority of the members of the board so requests.
    Sec. 16. (a) This section applies to a meeting of the board at which at least four (4) members of the board are physically present at the place where the meeting is conducted.
    (b) A member of the board may participate in a meeting of the board by using a means of communication that permits:
        (1) all other members of the board participating in the meeting; and
        (2) all members of the public physically present at the place where the meeting is conducted;
to simultaneously communicate with each other during the meeting.
    (c) A member of the board who participates in a meeting under subsection (b) is considered to be present at the meeting.
    (d) The memoranda of the meeting prepared under IC 5-14-1.5-4 must also state the name of each member of the board who:
        (1) was physically present at the place where the meeting was conducted;
        (2) participated in the meeting by using a means of communication described in subsection (b); and
        (3) was absent.
    Sec. 17. Any member or employee of the authority who has, will have, or later acquires an interest, direct or indirect, in any transaction with the authority shall immediately disclose the nature and extent of the interest in writing to the authority as soon as the member or employee has knowledge of the actual or prospective interest. The disclosure shall be announced in open meeting and entered upon the minutes of the authority. Upon disclosure, the member or employee shall not participate in any action by the authority authorizing the transaction. However, such an interest shall not invalidate actions by the authority with the participation of the disclosing member prior to the time when the member became aware of the interest.
    Sec. 18. Subject to section 36 of this chapter, the authority may, without the approval of the attorney general or any other state officer, employ independent counsel, bond counsel, other attorneys, financial advisers, investment bankers, auditors, other technical or professional assistants, and such other officers, agents and employees (including an executive director), permanent or temporary, as the authority considers necessary or convenient to carry out the efficient operation of the authority, and shall determine the qualifications, duties, compensation, and terms of service of all such persons. The chairperson may appoint the initial executive director. The executive director is the chief operating officer of the authority, and the board shall establish the executive director's duties and responsibilities, including the powers that the authority has under this section. The board may delegate to an officer of the authority, the executive director, or one (1) or more other employees or agents of the authority such duties and responsibilities as the board considers necessary or convenient, including the powers that the authority has set forth in this section. Employees of the authority shall not be considered employees of the state.
    Sec. 19. (a) The authority shall:
        (1) adopt:
            (A) rules under IC 4-22-2; or
            (B) a policy;
        establishing a code of ethics for its employees; or
        (2) decide it wishes to be under the jurisdiction and rules adopted by the state ethics commission.
    (b) A code of ethics adopted by rule or policy under this section must be consistent with state law and approved by the governor.
    Sec. 20. The authority has all the general powers necessary to carry out its purposes and duties and to exercise its specific powers. In addition to other powers specified in this chapter, the authority may:
        (1) sue and be sued in the name of the authority;
        (2) make and execute agreements, contracts, and other instruments, with any public or private person, in accordance with this chapter;
        (3) invest monies held by the authority or on its behalf under any trust agreement of the authority or otherwise in the manner determined by resolution of the authority or under the trust agreement (an investment under this subdivision is not restricted by or subject to any other law);
        (4) establish any general or special funds, accounts, or subaccounts, and controls on deposits to and disbursements from them, as it finds necessary, desirable, or convenient for the implementation of this chapter;
        (5) procure insurance, other credit enhancements, and other financing arrangements for its bonds to fulfill its purposes under this chapter, including but not limited to municipal bond insurance and letters of credit;
        (6) accept appropriations, gifts, grants, loans, or other aid from public or private entities;
        (7) establish a stable source of revenue to be used for the purposes designated in this chapter;
        (8) enter into one (1) or more sales agreements with the state for purchase of a portion of the amounts and revenues due to the state under the master settlement agreement, and of the state's rights to receive those amounts and revenues;
        (9) issue bonds in one (1) or more series;
        (10) sell, pledge, or assign, as security, all or a portion of the revenues derived by the authority under any sales agreement, to provide for and secure the issuance of its bonds;
        (11) manage its funds, obligations, and investments as necessary and as consistent with its purpose;
        (12) without complying with IC 4-22-2, adopt, amend, and repeal bylaws, rules, and regulations not inconsistent with this chapter and necessary or convenient to regulate its affairs and to carry into effect the powers, duties, and purposes of the authority and conduct its business; and
        (13) exercise any other power reasonably required, convenient, or desirable to implement the purposes of this

chapter.
The rule of law that any doubt as to the existence of a power of the authority shall be resolved against the existence of that power is abrogated. Any doubt as to the existence of a power of the authority shall be resolved in favor of its existence.
    Sec. 21. The authority may not:
        (1) exercise the power of eminent domain; or
        (2) levy taxes of any kind.
    Sec. 22. (a) The authority may issue its bonds in principal amounts as may be necessary or appropriate to provide sufficient funds for:
        (1) the exercise of any of its powers or achievement of its purposes;
        (2) the payment of debt service on its bonds;
        (3) the establishment of debt service or operating reserves to secure the bonds;
        (4) the costs of issuance of its bonds and credit enhancements, if any; and
        (5) all other financing costs or other expenditures of the authority incident to and necessary to carry out its purposes or powers.
The net proceeds of the bonds shall be deposited in the fund specified by law, except that the net proceeds of refunding bonds shall be deposited in accordance with a trust agreement of the authority.
    (b) Before issuing bonds under this chapter, the authority shall publish a notice of its determination to issue the bonds. The notice shall be published one (1) time in a newspaper published and of general circulation in each of the four (4) counties having the greatest population in Indiana. No action to contest the validity of:
        (1) a series of bonds issued by the authority; or
        (2) any sales agreement entered into by the authority and the state related to the bonds;
may be brought after the fifteenth day following the publication of the notice. If an action challenging the bonds or sales agreement is not brought within the time prescribed by this subsection, the bonds or sales agreement shall be conclusively presumed to be fully authorized and valid under the laws of the state and any person or entity is estopped from further questioning the authorization, validity, execution, delivery, or issuance of the bonds or the sales agreement.
    (c) The bonds, when issued, shall have all the qualities of

negotiable instruments, subject to provisions for registration, under IC 26-1 and are incontestable in the hands of a bona fide purchaser or owner of the bond for value. Bonds issued under this chapter are exempt from the registration requirements of IC 23-2-1 and any other state securities registration statutes.
    (d) The authority's bonds shall:
        (1) bear the date or dates;
        (2) mature at the time or times;
        (3) be in the denominations;
        (4) be in the form;
        (5) be registered or registrable in the manner;
        (6) be made transferable, exchangeable, and interchangeable;
        (7) be payable in the medium of payment and at the place or places;
        (8) be subject to the terms of redemption;
        (9) bear the fixed or variable rate or rates of interest;
        (10) be payable at the time or times; and
        (11) be sold at a public or negotiated sale in the manner and at the price or prices;
as the authority determines.
    (e) The bonds shall be executed by one (1) or more officers of the authority and by the trustee or paying agent. Execution of the bonds may be by manual or facsimile signature.
    (f) The bonds of the authority are subject to the terms, conditions, covenants, and protective provisions that are found necessary or desirable by the authority, including, but not limited to, pledges of the authority's assets, setting aside of reserves, and other provisions the authority finds are necessary or desirable for the security of bondholders.
    (g) Any pledge of revenues to be derived by the authority under a sales agreement or from any other source, and the right to receive revenues under a sales agreement or from any other source, or any pledge of a special fund, account, or subaccount created by the authority, together with any investment earnings, is valid and binding at the time the pledge is made. Property so pledged is immediately subject to the lien of the pledge without any physical delivery thereof or further act. The lien of such a pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, regardless of whether the parties have notice of the lien. Notwithstanding any other provision of law to the contrary, the resolution or trust agreement of the authority or any other instrument by which the

pledge is created need not be recorded or filed except in the records of the authority to perfect the pledge.
    (h) Neither a member of the board nor a person executing bonds or notes issued under this article is liable personally on the bonds or notes.
    (i) The authority may, out of any funds or revenues available therefor, purchase its bonds in the open market.
    Sec. 23. (a) The bonds issued under this chapter by the authority constitute the special obligations only of the authority and are payable solely from and secured exclusively by the pledge by the authority of certain funds and revenues, and rights to receive funds or revenues in accordance with this chapter. Neither the faith and credit or taxing power of the state or any political subdivision of the state is pledged to the payment of principal or interest on the bonds. Each bond of the authority must plainly state on its face that the bond does not constitute an indebtedness or lending of the credit of the state within the meaning or application of any constitutional provision or limitation but that it is payable solely as to both principal and interest from the funds, revenues, and rights pledged under this chapter. The provisions of this chapter and the covenants and undertakings of the authority as expressed in any proceedings preliminary to or in connection with the issuance of the bonds may be enforced by a bondholder by action for injunction or mandamus against the authority or any officer, agent, or employee of the authority, but no action for monetary judgment may be brought against the state for any violations of this chapter.
    (b) All property of the authority is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments, direct or indirect, of the state or a political subdivision of the state. All bonds issued under this chapter are issued by a body corporate and politic of this state, but not a state agency, and for an essential public and governmental purpose, and the bonds, the interest thereon, the proceeds received by the holder from the sale of the bonds to the extent of the holder's cost of acquisition proceeds received upon redemption prior to maturity, and proceeds received at maturity and the receipt of the interest and proceeds are exempt from taxation in the state for all purposes except the financial institutions tax imposed under IC 6-5.5 or a state inheritance tax imposed under IC 6-4.1.
    Sec. 24. Contracts entered into by the authority shall be entered

into in the name of the authority and not in the name of the state of Indiana. The obligations of the authority under the contracts are obligations only of the authority and are not in any way obligations of the state of Indiana.
    Sec. 25. Bonds issued under the provisions of this chapter are hereby made securities in which all public officers and agencies of the state, all insurance companies, banking associations, investment companies, executors, administrators, trustees, and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. These bonds are hereby made securities that may properly and legally be deposited with and received by any officer or agency of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.
    Sec. 26. (a) Without complying with any other law governing the sale or disposition of property by the state, the state may sell and assign to the authority, and the authority may purchase, all of the state's right to receive a portion not to exceed twenty percent (20%) of the state's annual share of the amounts and revenues due to the state under the master settlement agreement, and of the state's rights to receive those amounts and revenues. The state, including the governor and the attorney general, may take any action necessary or convenient to facilitate and complete the sale. The authority may take any action necessary or convenient to facilitate and complete the purchase.
    (b) A sale and assignment made under this section is irrevocable. All or a portion of the amounts and revenues, and the right to receive the amounts and revenues, sold to the authority shall be pledged to the bondholders. The sale and assignment shall constitute and be treated as a true sale and absolute transfer of the property so sold and assigned and not as a pledge or other security interest granted by the state for any borrowing. The characterization of a sale and assignment as an absolute transfer shall not be negated or adversely affected by the fact that only a portion of the amounts and revenues due to the state under the master settlement agreement is being sold and assigned, by the state's acquisition or retention of an ownership interest in the portion of the amounts and revenues due under the master settlement agreement not so sold and assigned, or for any other reason.
    (c) The state hereby covenants and agrees with the holders of any bonds that so long as any bonds of the authority issued under

this chapter are outstanding and unpaid, the state will not limit or alter the rights vested in the authority to fulfill the terms of any agreements made with, or make payments to, the holders of the bonds or in any way impair the rights and remedies of the bondholders, until the bonds, together with interest thereon, and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholder are fully paid, satisfied, and discharged.
    (d) The terms of any sales agreement must provide that on and after the effective date of the sale and assignment:
        (1) the state shall have no right, title, or interest in the property sold and assigned;
        (2) the property sold and assigned is the property of the authority and not the property of the state;
        (3) the property sold and assigned shall be owned, received, held, and disbursed by the authority or its trustee or assignee, and not by the state;
        (4) none of the property sold and assigned shall be subject to garnishment, levy, execution, attachment, or other process, writ, (including writ of mandate), or remedy in connection with the assertion or enforcement of any debt, claim, settlement, or judgment against the state; and
        (5) the portion of the amounts and revenues due under the master settlement agreement that are sold and assigned to the authority must be paid directly to the authority or its trustee or assignee and shall not be considered money drawn from the state treasury.
    (e) Any sales agreement may include such other agreements and covenants of the state as may be permitted by the constitution of the state and as may be necessary or convenient for the sale and assignment of the portion of the amounts and revenues due under the master settlement agreement and the issuance of bonds to finance the purchase by the authority.
    (f) The state shall:
        (1) notify the independent auditor and the escrow agent under the master settlement agreement that a portion of the amounts and revenues due under the master settlement agreement has been sold and assigned to the authority; and
        (2) irrevocably instruct the independent auditor and the escrow agent that, after the date of the notice under subdivision (1), the portion of the amounts and revenues due under the master settlement agreement sold and assigned to

the authority is to be paid directly to the trustee under the trust agreement of the authority for the benefit of the owners of the bonds secured by a pledge of those amounts and revenues, until the bonds are no longer outstanding under the resolution or trust agreement.
    Sec. 27. Members of the board, the officers and employees of the authority, the agents of the authority, and any other persons executing bonds issued under this chapter are not subject to personal liability or accountability by reason of any act authorized by this chapter, including, without limitation, the issuance of bonds, the failure to issue bonds, the execution of bonds, and the exercise of any other powers contemplated by this chapter.
    Sec. 28. (a) The authority is prohibited from filing a voluntary petition under chapter 9 of the federal bankruptcy code or any corresponding chapter or section that may, from time to time, be in effect. A governmental officer, governmental organization, or other entity or person may not authorize the authority to be a debtor under chapter 9 of the federal bankruptcy code or any successor or corresponding chapter or sections.
    (b) This section shall be part of any contractual obligation owed to the holders of bonds issued under this chapter. Any such contractual obligation shall not subsequently be modified by state law before the date that is three hundred sixty-six (366) days after the date upon which the authority no longer has any bonds outstanding.
    Sec. 29. The authority shall dissolve not later than two (2) years from the date of final payment of all of its outstanding bonds and the satisfaction of all outstanding obligations of the authority, except to the extent necessary to remain in existence to fulfill any outstanding covenants or provisions with bondholders or third parties made in accordance with this chapter. Upon dissolution of the authority, all of the authority's property shall be transferred and assigned to the state and the authority shall execute all necessary assignments and other documents as may be necessary or convenient to transfer and assign its property to the state, including the authority's right, title, or ownership interest in amounts and revenues due under the master settlement agreement, which amounts shall be deposited in the state general fund.
    Sec. 30. Before issuing any bonds, the authority shall enter into a sales agreement that includes the agreement of the state to:
        (1) diligently enforce the authority's right to receive the portion of the amounts and revenues due under the master

settlement agreement and sold under the sales agreement, to the full extent permitted by the master settlement agreement;
        (2) diligently enforce the qualifying statute as contemplated by the master settlement agreement against all tobacco product manufacturers that are selling tobacco products in Indiana and are not signatories to the master settlement agreement;
        (3) neither amend the master settlement agreement nor take any other action that would in any way:
            (A) alter, limit, or impair the authority's right to receive the portion of the amounts and revenues due under the master settlement agreement and sold under the sales agreement;
            (B) limit or alter the rights vested in the authority by this chapter or other law to fulfill its agreements with the bond owners; or
            (C) impair the rights and remedies of the bond owners or the security for the bonds;
        until the bonds, together with the interest on the bonds and all costs and expenses in connection with any action or proceedings by or on behalf of the bond owners, are fully paid and discharged (however, nothing in this subdivision shall be construed to preclude the state's regulation of smoking and taxation and regulation of the sale of cigarettes or other tobacco products);
        (4) not amend, supersede, or repeal the qualifying statute in any way that would violate section 26(c) of this chapter; or
        (5) take no action that would adversely affect the tax exempt status of any tax exempt bonds issued by the authority.
    Sec. 31. The authority shall contract with an independent certified public accountant for an annual financial audit of the authority. The certified public accountant shall present an audit report not later than seven (7) months after the end of each fiscal year of the authority.
    Sec. 32. The state board of accounts may at any time conduct an audit of the authority.
    Sec. 33. The authority shall submit copies of its annual budget and the audit report referred to in section 31 of this chapter to the budget director, the legislative council, and the state board of accounts.
    Sec. 34. Income or revenues of the authority not required to meet its obligations (including redemption obligations on its bonds)

shall be paid over to the state general fund if directed by the governor.
    Sec. 35. (a) As used in this section, "sale portion" means the portion of the punitive damage award payment that is equal to the percentage determined under section 26 of this chapter.
    (b) This section applies upon the entry of a judgment that includes a punitive damage award in a civil action related to tobacco products in which:
        (1) the state or an agency of the state is the party to the action receiving the award; and
        (2) a tobacco manufacturer who participates in the master settlement agreement is the party against whom the judgment was entered.
IC 34-51-3-6 does not apply to such a punitive damage award.
    (c) Upon entry of a judgment described in this section, the right of the state or an agency of the state to receive the sale portion of the punitive damage award payment described in this section is assigned to the authority. For as long as this assignment is in effect, any sale portion of a punitive damage award payment received by the state, or an agency of the state, in settlement of a judgment described in this section or as satisfaction or partial satisfaction of a judgment to which this section applies shall be considered to be held for the benefit of the authority and shall be remitted immediately after receipt of the payment to the authority subject to any pledge under this chapter.
    (d) The authority may spend money received under this section in accordance with this chapter, subject to any pledge under this chapter.
    (e) That portion of the punitive damages award in excess of the sale portion under this section shall be paid to the state or an agency of the state, as applicable, and used as otherwise provided by law.
    (f) The assignment under this section terminates upon the earlier of the date on which:
        (1) the authority is dissolved pursuant to section 29 of this chapter;
        (2) all outstanding bonds and other agreements of the authority have been paid in full or otherwise discharged; or
        (3) a state court has entered a final judgment from which no further appeal is allowed ordering the judgment debtor tobacco manufacturer to pay the state both its obligations under the master settlement agreement and any punitive

damages to be paid to the state without setoff, credit or reduction of one (1) obligation on account of the other.
    Sec. 36. (a) As used in this section, "bond service provider" means any bond counsel, other attorney, financial adviser, senior managing underwriter, or verification agent who provides bond services.
    (b) As used in this section, "bond services" includes legal, financial, and other services by a bond service provider rendered in conjunction with the issuance and sale of bonds. The term does not include services provided by nationally recognized credit rating agencies, co-managing underwriters and selling group members, or forecasters of cigarette consumption and providers of similar reports for use in an official statement or other disclosure document in connection with the sale of bonds.
    (c) If the authority determines that a bond service required by the authority cannot be performed by employees of the authority, the authority shall enter into a contract for the bond service with a bond service provider. The authority shall have wide discretion in establishing criteria for entering into contracts under this section and selecting the bond service providers the authority considers to be necessary or appropriate to provide bond services. In the exercise of this discretion, the authority shall consider all proposed fee schedules and the public interest in achieving issuance and sale of bonds on terms and conditions most favorable to the authority. Notwithstanding any other provision of this section to the contrary, the general assembly finds that it is in the public interest to enter into contracts for bond services with Indiana based and minority and women's business enterprises.
    (d) The authority shall seek responses to requests for qualifications for a contract for bond services under this section. Requests for qualifications for bond services must include the following:
        (1) The factors or criteria that will be used in evaluating the responses.
        (2) A statement concerning the relative importance of price and the other evaluation factors.
        (3) A statement concerning whether the response must be accompanied by a certified check or other evidence of financial responsibility.
        (4) A statement concerning whether discussions may be conducted with responsible respondents.


    (e) The authority shall give public notice of the request for qualifications for bond services by publication in the manner required by IC 4-4-31-22(b) and shall also provide electronic access to the notice through the electronic gateway administered by the intelenet commission.
    (f) Responses must be opened so as to avoid disclosure of contents to competing respondents during the process of negotiation.
    (g) As provided in the request for qualifications or under the rules or policies of the authority, discussions may be conducted with, and best and final responses obtained from, responsible respondents.
    (h) Respondents must be accorded fair and equal treatment with respect to any opportunity for discussion and revisions of responses. In conducting discussions with a respondent, information derived from responses submitted by competing respondents may not be disclosed.
    (i) The only factors or criteria that may be used in the evaluation of responses are those specified in the request for qualifications.
    (j) The authority shall enter into a contract with the responsible respondent whose response is determined in writing to be the most advantageous to the authority, taking into consideration price and other evaluation factors set forth in the request for qualifications. The following provisions apply to the authority's determination as to whether a respondent is responsible:
        (1) If a respondent fails to provide information required by the authority concerning a determination of whether the respondent is responsible, that respondent may not be considered responsible under this article.
        (2) In determining whether a respondent is responsible, the authority may consider the following factors:
            (A) The ability and capacity of the respondent to provide the bond service.
            (B) The integrity, character, and reputation of the respondent.
            (C) The competency and experience of the respondent.
    (k) A register of responses must be:
        (1) prepared for each contract entered into under this section; and
        (2) open for public inspection after the execution of the contract.
    (l) The register of responses must contain the following:
        (1) A copy of the request for qualifications.
        (2) A list of all persons to whom copies of the request for qualifications were given.
        (3) A list of all responses received, which must include all of the following:
            (A) The names and addresses of all respondents.
            (B) The manner in which the amount payable to the respondent would be determined.
            (C) The name of the successful respondent and the manner in which the amount payable to that respondent is to be determined.
        (4) The basis on which the contract was entered into.
        (5) The entire contents of the contract file except for proprietary information, such as trade secrets and financial information that was not required to be made available for public inspection by the terms of the request for qualifications.

SOURCE: IC 4-12-1-14.3; (03)HB1002.1.2. -->     SECTION 2. IC 4-12-1-14.3, AS AMENDED BY P.L.291-2001, SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14.3. (a) As used in this section, "master settlement agreement" has the meaning set forth in IC 24-3-3-6.
    (b) There is hereby created the Indiana tobacco master settlement agreement fund for the purpose of depositing and distributing money received under the master settlement agreement. The fund consists of:
        (1) all money received by the state under the master settlement agreement;
        (2) appropriations made to the fund by the general assembly; and
        (3) grants, gifts, and donations intended for deposit in the fund; and
        (4) interest accruing to the fund.
However, the fund does not include any amounts that are sold and assigned to the tobacco settlement authority under a sales agreement entered into under IC 4-4-31.

    (c) Money may be expended, transferred, or distributed from the fund during a state fiscal year only in amounts permitted by subsections subsection (d), through (e), and only if the expenditures, transfers, or distributions are specifically authorized by another statute.
    (d) The maximum amount of expenditures, transfers, or distributions that may be made from the fund during the state fiscal year beginning July 1, 2000, is determined under STEP THREE of the following formula:
        STEP ONE: Determine the sum of money received or to be received by the state under the master settlement agreement before July 1, 2001.
        STEP TWO: Subtract from the STEP ONE sum the amount appropriated by P.L.273-1999, SECTION 8, to the children's health insurance program from funds accruing to the state from the tobacco settlement for the state fiscal years beginning July 1, 1999, and July 1, 2000.
        STEP THREE: Multiply the STEP TWO remainder by fifty percent (50%).
    (e) (d) The maximum amount of expenditures, transfers, or distributions that may be made from the fund during the state fiscal year beginning July 1, 2001, 2003, and each state fiscal year after that is determined under STEP THREE of the following formula:
        STEP ONE: Determine the amount of money received or to be received by payable to the state under the master settlement agreement during that state fiscal year, including any amounts that are sold and assigned to the tobacco settlement authority under a sales agreement entered into under IC 4-4-31.
        STEP TWO: Multiply the STEP ONE amount by sixty percent (60%).
        STEP THREE: Add to the STEP TWO product any amounts that were available for expenditure, transfer, or distribution under this subsection or subsection (d) section during preceding state fiscal years but that were not expended, transferred, or distributed.
    (f) (e) The following amounts shall be retained in the fund and may not be expended, transferred, or otherwise distributed from the fund:
        (1) All of the money that is received by the state under the master settlement agreement and remains in the fund after the expenditures, transfers, or distributions permitted under subsections (c) through (e). (d). This subdivision does not apply to amounts payable under the master settlement agreement that are sold and assigned to the tobacco settlement authority under a sales agreement entered into under IC 4-4-31.
        (2) All interest that accrues from investment of money in the fund, unless specifically appropriated by the general assembly. Interest that is appropriated from the fund by the general assembly may not be considered in determining the maximum amount of expenditures, transfers, or distributions under subsection (e). (d).
    (g) (f) The fund shall be administered by the budget agency. Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in

the same manner as money is invested by the public employees retirement fund under IC 5-10.3-5. The treasurer of state may contract with investment management professionals, investment advisors, and legal counsel to assist in the investment of the fund and may pay the state expenses incurred under those contracts from the fund. Interest that accrues from these investments shall be deposited in the fund. Money in the fund at the end of the state fiscal year does not revert to the state general fund.
    (h) (g) The state general fund is not liable for payment of a shortfall in expenditures, transfers, or distributions from the Indiana tobacco master settlement agreement fund or any other fund due to a delay, reduction, or cancellation of payments scheduled to be received by the state under the master settlement agreement. If such a shortfall occurs in any state fiscal year, the budget agency shall make the full transfer to the regional health facilities construction account and then reduce all remaining expenditures, transfers, and distributions affected by the shortfall.

SOURCE: IC 4-12-1-14.5; (03)HB1002.1.3. -->     SECTION 3. IC 4-12-1-14.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14.5. (a) In addition to the appropriation of three million dollars ($3,000,000) made annually by IC 4-12-7-9 to provide funding for local boards of health, the following appropriations are made annually from the Indiana tobacco master settlement agreement fund:
        (1) For the tobacco use prevention and cessation trust fund, thirty-five million dollars ($35,000,000) to be used in accordance with IC 4-12-4-10.
        (2) For the office of Medicaid policy and planning within the office of the secretary of family and social services, thirty-three million six hundred thousand dollars ($33,600,000) to be used for the children's health insurance program.
        (3) For the state department of health, one million four hundred thousand dollars ($1,400,000) to be used for local health maintenance fund programs.
        (4) For the state department of health, fifteen million dollars ($15,000,000) to be used for community health centers.
        (5) For the Indiana prescription drug account established by IC 4-12-8-2, twenty million dollars ($20,000,000) to be used in accordance with IC 4-12-8-2.
        (6) For the nursing scholarship fund established by IC 20-12-21.9-4, the amount determined under IC 20-12-21.9-11, to be used in accordance with IC 20-12-21.9.
        (7) For the health professions scholarship fund established by IC 20-12-22.2-4, the amount determined under IC 20-12-22.2-11, to be used in accordance with IC 20-12-22.2.
    (b) The following appropriations are made from the Indiana tobacco master settlement agreement fund to the office of the secretary of family and social services for the indicated state fiscal years:
        (1) For the state fiscal year beginning July 1, 2003:
            (A) thirty million three hundred thousand dollars ($30,300,000) for developmentally disabled client services; and
            (B) three million dollars ($3,000,000) for the division of disability, aging, and rehabilitative services administration.
        (2) For the state fiscal year beginning July 1, 2004:
            (A) thirty million three hundred thousand dollars ($30,300,000) for developmentally disabled client services; and
            (B) three million dollars ($3,000,000) for the division of disability, aging, and rehabilitative services administration.
    (c)
Notwithstanding section 14.3(d) and 14.3(e) of this chapter, if the sum of the appropriations made in IC 4-12-7-9, subsection (a), and subsection (b) for any state fiscal year exceeds the permissible amount of expenditures from the Indiana tobacco master settlement agreement fund under section 14.3(d) of this chapter, the balance in the fund shall be added to the amount available under section 14.3(d) of this chapter to provide for the appropriations in IC 4-12-7-9, subsection (a), and subsection (b).
    (d) Notwithstanding section 14.3(d) and 14.3(e) of this chapter, the following provisions apply if the Indiana tobacco master settlement agreement fund contains insufficient money to make the appropriations made in IC 4-12-7-9, subsection (a), and subsection (b) for any state fiscal year after the adjustment specified in subsection (c) is made:
        (1) The appropriations made in IC 4-12-7-9 and subsection (a)(1) are not subject to any reduction.
        (2) Each appropriation listed in subsection (a)(2) through (a)(7) and subsection (b) is subject to a pro rata reduction.

The amount of each appropriation is determined under STEP THREE of the following formula:
            STEP ONE: Subtract the sum of the appropriations made in IC 4-12-7-9 and subsection (a)(1) from the amount available under subsection (c).
            STEP TWO: Divide the appropriation by the sum of the appropriations made under subsection (a)(2) through (a)(7) and subsection (b).
            STEP THREE: Multiply the STEP ONE remainder by the STEP TWO quotient.

SOURCE: IC 4-12-8.5-3; (03)HB1002.1.4. -->     SECTION 4. IC 4-12-8.5-3, AS ADDED BY P.L.291-2001, SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) The regional health care construction account is established for the purpose of providing funding for state psychiatric hospitals and developmental centers, regional health centers, or other health facilities designed to provide crisis treatment, rehabilitation, or intervention for adults or children with mental illness, developmental disabilities, addictions, or other medical or rehabilitative needs. The account consists of:
        (1) amounts, if any, that any statute requires to be distributed to the account from the Indiana tobacco master settlement agreement fund;
        (2) appropriations to the account from other sources; and
        (3) grants, gifts, and donations intended for deposit in the account.
    (b) Fourteen million dollars ($14,000,000) shall be transferred during state fiscal years 2001-2002 and 2002-2003 from the Indiana tobacco master settlement fund to the account.
    (c) (b) The budget agency shall administer the account. Money in the account at the end of a state fiscal year does not revert to the state general fund but remains available for expenditure.
    (d) (c) Money in the account may be used for:
        (1) the construction, equipping, renovation, demolition, refurbishing, or alteration of existing or new state hospitals, regional health centers, or other health facilities; or
        (2) lease rentals to the state office building commission or other public or private providers of such facilities.
    (e) (d) Money in the account shall be used to pay any outstanding lease rentals before making any other payments from the account.
    (f) (e) Money in the account is annually appropriated for the purposes described in this chapter.
SOURCE: IC 8-9.5-9-2; (03)HB1002.1.5. -->     SECTION 5. IC 8-9.5-9-2, AS AMENDED BY P.L.273-1999, SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. As used in this chapter, "authority" means:
        (1) an authority or agency established under IC 8-1-2.2 or IC 8-9.5 through IC 8-23;
        (2) the commission established under IC 4-13.5;
        (3) only in connection with a program established under IC 13-18-13 or IC 13-18-21, the bank established under IC 5-1.5; or
        (4) a fund or program established under IC 13-18-13 or IC 13-18-21; or
        (5) the authority established under IC 4-4-31.

SOURCE: IC 8-9.5-9-8; (03)HB1002.1.6. -->     SECTION 6. IC 8-9.5-9-8, AS AMENDED BY P.L.273-1999, SECTION 48, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) With respect to all leases and contracts entered into by the authority with the Indiana department of transportation, the Indiana department of administration, a fund or program established under IC 13-18-13 or IC 13-18-21, or any other entity to support obligations, the lease or contract may provide that payments under a swap agreement are treated as a debt service on the obligations or as additional rental or other payment due under the lease or contract as the authority may determine.
    (b) The authority may determine that payments under a swap agreement may be integrated with payments on obligations for the purpose of meeting any statutory requirements related to the issuance of obligations. The authority may also determine to secure its payments under the swap agreement with the same collateral securing the related obligations, either on a parity or a subordinate basis.
SOURCE: IC 12-10-16-7; (03)HB1002.1.7. -->     SECTION 7. IC 12-10-16-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. An individual:
        (1) whose family income does not exceed one hundred eighty-five percent (185%) of the federal income poverty level for the same size family; and
        (2) who meets other eligibility requirements established by the office under section 5 of this chapter;
is eligible to participate in the program.

SOURCE: IC 20-12-21.9-4; (03)HB1002.1.8. -->     SECTION 8. IC 20-12-21.9-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) The nursing scholarship fund is established:
        (1) to encourage and promote qualified individuals to pursue a career in nursing in Indiana; and
        (2) in recognition of the fact that there is a shortage of nurses in Indiana.
    (b) The fund consists of the following:
        (1) Appropriations made from the Indiana tobacco master settlement agreement fund under section 11 of this chapter.
        (2)
Other appropriations by the general assembly.
        (2) (3) Gifts to the fund.
SOURCE: IC 20-12-21.9-5; (03)HB1002.1.9. -->     SECTION 9. IC 20-12-21.9-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) The commission shall administer the fund.
    (b) The expenses of administering the fund shall be paid from money in the fund.
    (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds. Interest that accrues from those investments shall be deposited in the fund.
    (d) Money in the fund at the end of a fiscal year does not revert to the state general fund or the Indiana tobacco master settlement agreement fund.
SOURCE: IC 20-12-21.9-11; (03)HB1002.1.10. -->     SECTION 10. IC 20-12-21.9-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11. The amount determined under STEP FOUR of the following formula for each state fiscal year is appropriated annually to the nursing scholarship fund from the Indiana tobacco master settlement agreement fund for use in providing scholarships under this chapter:
        STEP ONE: Determine the amount remaining in the nursing scholarship fund on June 30 of the preceding state fiscal year.
        STEP TWO: Determine the amount of the appropriations, if any, made to the nursing scholarship fund for the current state fiscal year from sources other than the Indiana tobacco settlement master agreement fund.
        STEP THREE: Subtract the sum of the STEP ONE and STEP TWO amounts from five million dollars ($5,000,000).
        STEP FOUR: If the STEP THREE remainder is greater than zero (0), the amount of the appropriation is equal to the STEP THREE remainder. If the STEP THREE remainder is less than zero (0), the amount of the appropriation is zero (0).

SOURCE: IC 20-12-22.2; (03)HB1002.1.11. -->     SECTION 11. IC 20-12-22.2 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     Chapter 22.2. Health Professions Scholarship Fund
    Sec. 1. As used in this chapter, "approved institution of higher learning" has the meaning set forth in IC 20-12-21-3.
    Sec. 2. As used in this chapter, "commission" refers to the state student assistance commission established by IC 20-12-21-4.
    Sec. 3. As used in this chapter, "fund" refers to the health professions scholarship fund.
    Sec. 4. (a) The health professions scholarship fund is established to encourage and promote qualified individuals to pursue careers in health professions in Indiana.
    (b) The fund consists of the following:
        (1) Appropriations by the general assembly from the Indiana tobacco master settlement agreement fund.
        (2) Other appropriations by the general assembly.
        (3) Gifts to the fund.
    Sec. 5. (a) The commission shall administer the fund.
    (b) The expenses of administering the fund shall be paid from money in the fund.
    (c) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from those investments shall be deposited in the fund.
    (d) Money in the fund at the end of a fiscal year does not revert to the state general fund or the Indiana tobacco master settlement agreement fund.
    Sec. 6. (a) The money in the fund shall be used to provide annual scholarships to:
        (1) students in programs leading to degrees that will enable the students to qualify for licensing in health professions governed by the:
            (A) board of environmental health specialists (IC 25-32);
            (B) speech-language pathology and audiology board (IC 25-35.6-2);
            (C) controlled substances advisory committee (IC 35-48-2-1);
            (D) Indiana physical therapy committee (IC 25-27);
            (E) respiratory care committee (IC 25-34.5);
            (F) occupational therapy committee (IC 25-23.5);
            (G) physician assistant committee (IC 25-27.5); and
            (H) Indiana dietitians certification board (IC 25-14.5-2-1); and
        (2) students in training programs identified by the medical licensing board by rule adopted under IC 25-22.5-2-7 as training programs for nonlicensed allied health care professions.
    (b) Scholarships shall be awarded under this section to students who qualify by demonstrating a financial need and meeting the requirements listed under section 8 of this chapter in an amount that is equal to the lesser of the following amounts:
        (1) The balance of the student's total cost of tuition or fees in attending the eligible institution for the academic year.
        (2) Five thousand dollars ($5,000).
    (c) A scholarship awarded under this section may be used only for the payment of tuition or fees that are:
        (1) approved by the approved institution of higher learning that awards the scholarship; and
        (2) not otherwise payable under any other scholarship or form of financial assistance specifically designated for tuition or fees.
    (d) Subject to section 7(c) of this chapter, each scholarship awarded under this section is renewable under section 8(b) of this chapter for a total number of terms that does not exceed eight (8) full-time (or part-time equivalent) semesters or twelve (12) full-time (or part-time equivalent) quarters.
    Sec. 7. (a) The commission for higher education shall provide the commission with the most recent information concerning the number of students enrolled in programs described in section 6 of this chapter at each eligible institution.
    (b) The commission shall allocate the available money from the fund to each approved institution of higher learning that has a program for persons training for health professions designated in section 6 of this chapter in proportion to the number of students enrolled in courses for health professions designated in section 6 of this chapter at each eligible institution based upon the information received by the commission under subsection (a).
    (c) Each approved institution of higher learning shall determine the scholarship recipients under this chapter based upon the criteria set forth in section 8 of this chapter and the rules adopted by the commission under section 10 of this chapter. In addition, the approved institution of higher learning shall consider the need of the applicant when awarding scholarships under this chapter.
    (d) The approved institution of higher learning may not grant a scholarship renewal to a student for an academic year that ends later than six (6) years after the date the student received the initial scholarship under this chapter.
    (e) Any funds that:
        (1) are allocated to an approved institution of higher learning; and
        (2) are not used for scholarships under this chapter;
shall be returned to the commission for reallocation by the commission to any other eligible institution in need of additional funds.
    Sec. 8. (a) To qualify initially for a scholarship from the fund, a student must:
        (1) be admitted to an approved institution of higher learning as a full-time or part-time student in one (1) of the areas designated in section 6(a) of this chapter;
        (2) agree, in writing, to work in a health profession described in section 6(a) of this chapter in any type of health care setting in Indiana for at least two (2) years following graduation;
        (3) meet any other minimum criteria established by the commission; and
        (4) demonstrate a financial need for the scholarship.
    (b) To qualify for a scholarship renewal from the fund, a health professions student must:
        (1) comply with the criteria set forth in subsection (a);
        (2) maintain at least the cumulative grade point average:
            (A) that is required by an approved institution of higher learning for admission to the approved institution of higher learning; or
            (B) equivalent to 2.0 on a 4.0 grading scale, as established by the approved institution of higher learning, if the institution's program for health professions described in section 6 of this chapter does not require a certain minimum cumulative grade point average; and
        (3) demonstrate a continuing financial need for the scholarship.
    Sec. 9. (a) The commission shall maintain complete and accurate records in implementing the program, including the following:
        (1) Scholarships awarded under this chapter.
        (2) The number of individuals who fulfilled the agreement described under section 8(a)(2) of this chapter.
        (3) The number of individuals who did not fulfill the agreement described under section 8(a)(2) of this chapter.
    (b) Each eligible institution shall provide the commission with information concerning the following:
        (1) The awarding of scholarships under this chapter.
        (2) The academic progress made by each recipient of a scholarship under this chapter.
        (3) Other pertinent information requested by the commission.
    Sec. 10. The commission shall adopt rules under IC 4-22-2 necessary to carry out this chapter, including rules governing the enforcement of the agreements under section 8(a)(2) of this chapter.
    Sec. 11. There is annually appropriated to the health professions scholarship fund from the Indiana tobacco master settlement agreement fund for use in providing scholarships under this chapter the amount determined under STEP FOUR of the following formula for each state fiscal year:
        STEP ONE: Determine the amount remaining in the health professions scholarship fund on June 30 of the preceding state fiscal year.
        STEP TWO: Determine the amount of the appropriations, if any, made to the health professions scholarship fund for the current state fiscal year from sources other than the Indiana tobacco master settlement agreement fund.
        STEP THREE: Subtract the sum of the STEP ONE and STEP TWO amounts from five million dollars ($5,000,000).
        STEP FOUR: If the STEP THREE remainder is greater than zero (0), the amount of the appropriation is equal to the STEP THREE remainder. If the STEP THREE remainder is less than zero (0), the amount of the appropriation is zero (0).

SOURCE: IC 25-22.5-2-7; (03)HB1002.1.12. -->     SECTION 12. IC 25-22.5-2-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. The board shall do the following:
        (1) Adopt rules and forms necessary to implement this article that concern, but are not limited to, the following areas:
            (A) Qualification by education, residence, citizenship, training, and character for admission to an examination for licensure or by endorsement for licensure.
            (B) The examination for licensure.
            (C) The license or permit.
            (D) Fees for examination, permit, licensure, and registration.
            (E) Reinstatement of licenses and permits.
            (F) Payment of costs in disciplinary proceedings conducted by the board.
        (2) Administer oaths in matters relating to the discharge of its official duties.
        (3) Enforce this article and assign service bureau personnel duties as may be necessary in the discharge of the board's duty.
        (4) Maintain, through the service bureau, full and complete records of all applicants for licensure or permit and of all licenses and permits issued.
        (5) Make available, upon request, the complete schedule of minimum requirements for licensure or permit.
        (6) Issue, at the board's discretion, a temporary permit to an applicant for the interim from the date of application until the next regular meeting of the board.
        (7) Issue an unlimited license, a limited license, or a temporary medical permit, depending upon the qualifications of the applicant, to any applicant who successfully fulfills all of the requirements of this article.
        (8) Adopt rules establishing standards for the competent practice of medicine, osteopathic medicine, or any other form of practice regulated by a limited license or permit issued under this article.
        (9) Adopt rules regarding the appropriate prescribing of Schedule III or Schedule IV controlled substances for the purpose of weight reduction or to control obesity.
         (10) Adopt rules identifying training programs for nonlicensed allied health care professions that qualify for annual scholarships under IC 20-12-22.2.
SOURCE: ; (03)HB1002.1.13. -->     SECTION 13. [EFFECTIVE JULY 1, 2003] There is appropriated to the tobacco settlement authority established by IC 4-4-31, as added by this act, one hundred twenty million dollars ($120,000,000) from the Indiana tobacco master settlement agreement fund for deposit in the same fund in which net proceeds of bonds issued by the authority must be deposited, as provided by IC 4-4-31, as added by this act. The money appropriated by this SECTION does not revert to the Indiana tobacco master settlement agreement fund at the close of any state fiscal year but remains available for distribution.