Introduced Version






HOUSE BILL No. 1884

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-8.1-1-1 ; IC 7.1-7; IC 33-19-7-7 ; IC 35-45-5-11 ; IC 36-8.

Synopsis: Gaming and local public safety personnel pensions. Creates a license under the jurisdiction of the alcohol and tobacco commission that permits gambling on electronic gaming devices in establishments that hold permits issued by the commission. Imposes an annual establishment license fee of $1,000 for each electronic gaming device. Limits the number of electronic gaming devices that an establishment may have. Creates a license for suppliers of electronic gaming devices. Requires suppliers to pay a $5,000 annual fee. Establishes the electronic gaming fund for the deposit of license fees and taxes. Imposes a wagering tax equal to 15% of the adjusted gross receipts from electronic gaming wagering. Appropriates sufficient funds to the commission to administer electronic gaming. Distributes the remaining tax and license revenues as follows: (1) 40% to the cities. (2) 30% to the counties. (3) 30% to the towns. Requires the distributions to be used for police and fire pensions. Provides that a police officer or firefighter who retires or becomes disabled after December 31, 2004, is entitled to a pension based on the salary of the rank held at the time of retirement or disability. Provides that a surviving spouse of a police officer or firefighter who dies after December 31, 2004, is entitled to an annuity based on the salary of the rank held at the time of the death of the police officer or firefighter. Provides that certain surviving children of a police officer or firefighter who dies after December 31, 2004, are entitled to an annuity based on the salary of the rank held at the time of the death of the police officer or firefighter. Increases the amount that must be appropriated from court fees to a pension trust for the sheriff's department.

Effective: July 1, 2003.





Pelath




    January 23, 2003, read first time and referred to Committee on Public Policy, Ethics and Veterans Affairs.







Introduced

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. 1884



    A BILL FOR AN ACT to amend the Indiana Code concerning gaming and pensions and to make an appropriation.

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

SOURCE: IC 6-8.1-1-1; (03)IN1884.1.1. -->     SECTION 1. IC 6-8.1-1-1 , AS AMENDED BY P.L.192-2002(ss), SECTION 140, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1. "Listed taxes" or "taxes" includes only the pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5 ); the riverboat admissions tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the gross income tax (IC 6-2.1) (repealed); the utility receipts tax (IC 6-2.3); the state gross retail and use taxes (IC 6-2.5); the adjusted gross income tax (IC 6-3); the supplemental net income tax (IC 6-3-8) (repealed); the county adjusted gross income tax (IC 6-3.5-1.1); the county option income tax (IC 6-3.5-6); the county economic development income tax (IC 6-3.5-7); the municipal option income tax (IC 6-3.5-8); the auto rental excise tax (IC 6-6-9); the financial institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the alternative fuel permit fee (IC 6-6-2.1); the special fuel tax (IC 6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a reciprocal agreement under IC 6-8.1-3 ; the motor vehicle excise tax (IC 6-6-5); the commercial vehicle excise tax

(IC 6-6-5.5); the hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax (IC 6-7-1); the beer excise tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the electronic gaming wagering tax (IC 7.1-7-9); the petroleum severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the various county food and beverage taxes (IC 6-9); the county admissions tax (IC 6-9-13 and IC 6-9-28 ); the oil inspection fee (IC 16-44-2); the emergency and hazardous chemical inventory form fee (IC 6-6-10); the penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the fees and penalties assessed for overweight vehicles (IC 9-20-4 and IC 9-30); the underground storage tank fee (IC 13-23); the solid waste management fee (IC 13-20-22); and any other tax or fee that the department is required to collect or administer.

SOURCE: IC 7.1-7; (03)IN1884.1.2. -->     SECTION 2. IC 7.1-7 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]:
     ARTICLE 7. ELECTRONIC GAMING IN ESTABLISHMENTS LICENSED TO SELL ALCOHOLIC BEVERAGES
    Chapter 1. General Provisions

    Sec. 1. Under 15 U.S.C. 1172, approved January 2, 1951, the state of Indiana, acting by and through elected and qualified members of the legislature, declares that the state is exempt from 15 U.S.C. 1172.
    Sec. 2. All shipments of gambling devices authorized under this article, to licensed suppliers and establishments in Indiana, the registering, recording, and labeling of which have been completed by the manufacturer or dealer thereof in accordance with 15 U.S.C. 1171 through 15 U.S.C. 1178, are legal shipments of gambling devices into Indiana.
    Chapter 2. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. "Commission" refers to the alcohol and tobacco commission established by IC 7.1-2-1-1.
    Sec. 3. "Electronic gaming device" means an electromechanical device, an electrical device, or a machine that:
        (1) upon payment of consideration is available to play or operate;
        (2) makes payoffs in any manner, including delivery of premiums, merchandise, tokens, redeemable game credits, or

anything of value to the person playing the game; and
        (3) is approved by the commission under this article.
    Sec. 4. "Establishment" means a licensed premises that is licensed to sell alcoholic beverages under IC 7.1-3 to customers for consumption on the licensed premises.
    Sec. 5. "Gambling operations" means the operation of authorized electronic gaming devices under this article.
    Sec. 6. "Licensee" means a person that holds:
        (1) a supplier's license; or
        (2) an establishment license;
issued under IC 7.1-7-3.
    Sec. 7. "Person" has the meaning set forth in IC 7.1-1-3-31.
    Sec. 8. "Supplier" means an individual or a business entity that is licensed under this article to:
        (1) distribute, sell, or lease electronic gaming devices or associated equipment in Indiana; or
        (2) own electronic gaming devices and physically place the electronic gaming devices for public gaming operations at an establishment in Indiana.
    Chapter 3. Licensing
    Sec. 1. The commission does not have authority to regulate electronic gaming devices that are operated on riverboats (as defined in IC 4-33-2-17 ).
    Sec. 2. (a) The commission may issue supplier and establishment licenses to applicants that satisfy the requirements of this article.
    (b) A person may not apply for an establishment license unless IC 7.1-7-6 applies to the person.
    Sec. 3. (a) An applicant seeking to obtain a license under this article must submit the fee required by the commission and apply to the commission in the manner required by the commission. The application must include at least the following:
        (1) The name and address of the applicant and of any person holding at least a one percent (1%) interest in the applicant.
        (2) The applicant's consent to credit investigations and criminal record searches.
        (3) Waivers and releases signed by the applicant that the commission believes are necessary to ensure a full and complete review of the application.
    (b) An applicant shall furnish all information requested by the commission, including financial data and documents, certifications, consents, waivers, and individual histories.
    Sec. 4. Criminal history record information obtained during the

investigation of an individual must be maintained by the commission for the term of the license and for any subsequent license term.
    Sec. 5. The commission shall conduct or cause to be conducted a background investigation of each applicant for licensure.
    Sec. 6. The commission may require that an application or other document submitted by an applicant or a licensee must be sworn to or affirmed before a notary public.
    Sec. 7. (a) The commission shall notify an applicant who is denied a license of the specific reasons for denial. The notification must be:
        (1) in writing; and
        (2) sent by certified mail.
    (b) The applicant has forty-five (45) calendar days after the date the written notice is received by the applicant under subsection (a) to request a hearing on the denial of the license.
    Sec. 8. The commission may not issue a license to an applicant who:
        (1) has knowingly made a false statement of material fact to the commission;
        (2) is found by the commission to lack the necessary financial stability or responsibility for licensure;
        (3) if an individual, is less than twenty-one (21) years of age on the date the application is received by the commission;
        (4) is on the most recent tax warrant list provided to the commission by the department of state revenue;
        (5) if an individual, has been convicted of or entered a plea of guilty or nolo contendere to a felony in the ten (10) years preceding the date of license application, unless the commission determines that:
            (A) the individual has been pardoned or the individual's civil rights have been restored;
            (B) after the conviction or entry of the plea, the individual has engaged in the kind of law abiding commerce and good citizenship that would reflect well upon the integrity of the commission; or
            (C) the individual has terminated a relationship with a person whose actions directly contributed to the conviction or entry of the plea;
        (6) if an individual, has been convicted of or entered a plea of guilty or nolo contendere to a violation of a gambling statute in any jurisdiction; or


        (7) fails to provide all materials requested by the commission.
However, the commission may determine that a waiver is warranted under the circumstances for an individual described in subdivision (6).
    Sec. 9. Credit and security investigation information submitted in connection with an application for a license under this article is confidential and may not be disclosed except for official purposes under this article or under a judicial order.
    Sec. 10. A license issued under this article may not be transferred without prior written approval of the commission.
    Sec. 11. (a) An establishment license issued under this chapter expires one (1) year after the date of issuance.
    (b) An establishment license may be renewed for a fee and in the manner determined by the commission.
    Sec. 12. (a) A supplier's license issued under this chapter expires one (1) year after the date of issuance.
    (b) A supplier's license issued under this chapter may be renewed for a fee and in a manner determined by the commission.
    Chapter 4. Powers and Duties of the Commission
    Sec. 1. The commission has the following powers and duties to administer, regulate, and enforce gambling operations:
        (1) All powers and duties specified by this article.
        (2) All powers necessary and proper to fully and effectively execute and enforce this article, including the power to do the following:
            (A) Supervise and exercise jurisdiction over the following:
                (i) Electronic gaming device gambling operations within establishments over which the commission has jurisdiction under this article.
                (ii) Individuals in establishments over which the commission has jurisdiction under this article.
            (B) Investigate and determine the eligibility of applicants for licenses and reinvestigate licensees.
            (C) Take appropriate administrative enforcement or disciplinary action against a licensee.
            (D) Investigate alleged violations of this article.
            (E) Establish fees under IC 7.1-7-7 for licenses issued under this article.
            (F) Conduct hearings.
            (G) Issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of relevant documents.
            (H) Administer oaths and affirmations to the witnesses and take depositions.
            (I) Revoke, suspend, or renew licenses issued under this article.
            (J) Hire employees to gather information, conduct investigations, and carry out other tasks under this article.
    Sec. 2. The commission shall adopt rules under IC 4-22-2 concerning the following:
        (1) Administering this article.
        (2) Establishing the conditions under which gambling operations may be conducted under this article.
        (3) Preventing practices detrimental to the public interest and promoting the best interests of electronic gaming device gambling operations.
        (4) Imposing penalties for noncriminal violations of this article.
        (5) Protecting or enhancing the following:
            (A) The credibility and integrity of gambling operations authorized by this article.
            (B) The regulatory process provided in this article.
        (6) Authorizing electronic gaming devices that are approved for gambling operations under this article.
        (7) Establishing the method and procedure for the validation and payment of a winning ticket.
        (8) Establishing other qualifications and procedures for granting supplier and establishment licenses under this article.
    Sec. 3. The commission may employ or contract for additional investigators to oversee the gambling operations under this article.
    Sec. 4. The commission shall require that a licensee's records concerning gambling operations must be maintained in the manner and for the time prescribed by the commission.
    Sec. 5. (a) Except as provided in subsection (c), the commission may do any combination of the following to a licensee that violates this article:
        (1) Suspend, revoke, or restrict the license of the licensee.
        (2) Impose a civil penalty set by the commission against a licensee for each violation of this article.
    (b) If a licensee holding an establishment license under IC 7.1-7-3 no longer holds a permit issued by the commission as required under IC 7.1-7-6-2 , the commission shall revoke the establishment license.
    (c) A license issued under this article is automatically revoked if the commission determines that a licensee has offered, installed, serviced, maintained, possessed, or otherwise made available to the public an electronic gaming device that is not licensed by the commission.
    (d) A person whose license is revoked under subsection (c) may not be licensed under this article for three (3) years after the revocation.
    Sec. 6. The state police department shall assist the commission in conducting background investigations of applicants. The commission shall reimburse the state police department for the costs incurred as a result of the assistance. The commission shall make the payment from fees collected from applicants.
    Chapter 5. Supplier's License
    Sec. 1. A person must possess a supplier's license to:
        (1) own more than twenty (20) electronic gaming devices; or
        (2) distribute, sell, or lease electronic gaming devices or associated equipment to a person holding an establishment license issued under this article.
    Sec. 2. To qualify for a supplier's license, an applicant must:
        (1) prove, using tax records and bills of sale, that the applicant has been doing business in Indiana for at least two (2) years before the date of the application; and
        (2) maintain a place of business located in Indiana, including at least a warehouse and service facility.
    Sec. 3. (a) For each supplier's license that is issued by the commission, the commission shall create and maintain a list of the following:
        (1) The name of the individual who signed the application for the license.
        (2) The name, address, and telephone number of the person holding the supplier's license.
        (3) The number of electronic gaming devices owned by the supplier.
        (4) The serial number of each electronic gaming device owned by the supplier.
    (b) The list described in subsection (a) must be made available for public inspection in the offices of the commission.
    Sec. 4. A supplier may not own, manage, or control an establishment licensed under IC 7.1-7-6.
    Sec. 5. A supplier may not distribute an electronic gaming device in Indiana unless the device is approved by the commission

under this article.
    Sec. 6. A supplier may not distribute an electronic gaming device to an establishment unless the establishment is licensed under IC 7.1-7-6.
    Chapter 6. Establishment License
    Sec. 1. (a) Except as provided in subsections (b) and (c), this chapter applies to a person licensed under IC 7.1 to sell alcoholic beverages to customers for consumption on the person's licensed premises.
    (b) This chapter does not apply to a person holding a horse track permit under IC 7.1-3-17.7.
    (c) Except as provided in subsection (d), this chapter does not apply to a person holding a supplemental retailer's permit issued under IC 7.1-3-16.5.
    (d) Notwithstanding subsection (c), this chapter applies to a person authorized to sell alcoholic beverages on Sundays to customers for consumption on the person's licensed premises under IC 7.1-3-20-2.5.
    Sec. 2. An establishment license issued under IC 7.1-7-3 entitles the licensee to conduct gambling operations on the premises of the establishment.
    Sec. 3. (a) For each establishment license that is issued by the commission, the commission shall create and maintain a list of the following:
        (1) The name of the individual who signed the application for the license.
        (2) The name, address, and telephone number of the person holding the license.
        (3) The number of electronic gaming devices located at the establishment.
        (4) The serial number of each electronic gaming device located at the establishment.
        (5) The sticker numbers required under section 4(d) of this chapter.
    (b) The list described in subsection (a) must be available for public inspection in the offices of the commission.
    Sec. 4. (a) Except as provided in subsection (b), an establishment license issued under IC 7.1-7-3 authorizes an establishment to have five (5) electronic gaming devices placed in the establishment.
    (b) An establishment license issued under IC 7.1-7-3 authorizes a club (as defined in IC 7.1-1-3-10 ) or a fraternal club (as defined in IC 7.1-3-20-7 ) to have ten (10) electronic gaming devices placed

in the establishment plus an additional electronic gaming device per one hundred (100) members and a maximum of twenty (20) electronic gaming devices per establishment.
    (c) An establishment must pay an annual fee established under IC 7.1-7-7 for each electronic gaming device located on the premises of the establishment.
    (d) The commission shall annually issue a sticker with a number for each licensed electronic gaming device. The establishment must place the sticker on each licensed electronic gaming device in a manner determined by the commission.
    (e) A person holding an establishment license may not own more than the lesser of:
        (1) the number of electronic gaming devices authorized to be placed in the person's establishment under subsection (a); or
        (2) twenty (20) electronic gaming devices.
    Sec. 5. (a) An establishment license issued under IC 7.1-7-3 must be conspicuously displayed in the establishment.
    (b) Gambling operations may not take place unless the establishment license is conspicuously displayed in the licensed establishment as required by subsection (a).
    Chapter 7. Fees
    Sec. 1. The commission shall adopt rules under IC 4-22-2 to establish fees for licenses issued under this article. The fees may not exceed the following:
        (1) Five thousand dollars ($5,000) annually for each supplier's license.
        (2) One thousand dollars ($1,000) annually for an establishment license if the establishment has one (1) electronic gaming device. The licensee shall pay an additional one thousand dollars ($1,000) annually for each additional electronic gaming device that the licensee will operate in the establishment.
    Sec. 2. Fees collected under this chapter must be deposited in the electronic gaming fund established by IC 7.1-7-10-2.
    Sec. 3. A local governmental authority may not charge an additional fee or charge for the licensing of suppliers or establishments under this article.
    Chapter 8. Operation of Electronic Gaming Devices
    Sec. 1. Electronic gaming devices and equipment associated with electronic gaming devices must be maintained and serviced in the manner and condition required by the commission.
    Sec. 2. (a) An establishment licensee is responsible for keeping

a written service log in each of the electronic gaming devices. The log must be located in the main cabinet access area of the electronic gaming device's terminal.
    (b) An individual, including an employee or agent of the commission, who gains entry into any internal space of an electronic gaming device shall sign the log and indicate the time, date, and purpose of entry, the electronic and mechanical meter readings, and the parts of the terminal inspected or repaired.
    (c) Service log forms must be obtained from the commission and be retained by an establishment during the time that the electronic gaming device is being used for gambling operations and for at least one (1) year after the electronic gaming device is removed from service.
    (d) Service logs created under this section must be available for immediate inspection by an employee or agent of the commission upon request.
    Sec. 3. The commission may inspect an electronic gaming device terminal before the electronic gaming device or terminal is placed in operation to ensure that the electronic gaming device is in compliance with this article and the rules of the commission.
    Sec. 4. An electronic gaming device must prominently display a table listing the available prizes and the odds of winning.
    Sec. 5. An electronic gaming device must dispense to each winning player a ticket indicating the amount won and containing:
        (1) information on how to redeem the ticket for cash; and
        (2) a notice that the ticket must be redeemed within the time set forth in section 6(c) of this chapter.
    Sec. 6. (a) The holder of an establishment license shall immediately pay a winning player the amount won on an electronic gaming device upon presentation of a winning ticket by the player.
    (b) An establishment may not pay a player for a winning ticket from another establishment.
    (c) A ticket that is not redeemed within seventy-two (72) hours after the ticket is dispensed is void.
    Sec. 7. (a) A licensee shall maintain records of the electronic gaming devices the licensee owns. The records shall be made available to the commission upon request and must be sufficient to ensure that the electronic gaming device is operated in compliance with this article and the rules of the commission.
    (b) The records required under this section must be held by the licensee during the time that each electronic gaming device is located in Indiana and for at least one (1) year after the device is

no longer being used for gambling operations.
    Sec. 8. (a) An electronic gaming device may not be operated in a location in an establishment where a person less than twenty-one (21) years of age has access to the electronic gaming device.
    (b) An establishment may not allow a person less than twenty-one (21) years of age to wager on an electronic gaming device.
    Sec. 9. (a) Except as provided in subsection (b), an establishment licensee may not advertise or promote in any way the presence of electronic gaming devices in an establishment.
    (b) An establishment licensee may advertise electronic gaming devices within the establishment if:
        (1) the advertising cannot be viewed from outside the establishment; and
        (2) the licensee complies with the rules of the commission concerning advertising.
    Sec. 10. An establishment licensee may not include within the name of the business the term "casino", "electronic gaming devices", or any related term that may be identified with casino gambling.
    Sec. 11. The minimum payout percentage required of electronic gaming devices authorized under this article is eighty percent (80%).
    Sec. 12. The minimum amount for a wager in an electronic gaming device under this article is five cents ($0.05).
    Sec. 13. The maximum amount for a wager in an electronic gaming device under this article is six dollars and forty cents ($6.40).
    Sec. 14. The maximum prize on a game played on an electronic gaming device under this article is one thousand five hundred dollars ($1,500).
    Sec. 15. A wager may be made on an electronic gaming device using currency, a token, or an electronic card.
    Sec. 16. Currency, tokens, or electronic cards may be acquired by means of an agreement under which the licensee extends credit to a patron.
    Chapter 9. Electronic Gaming Wagering Tax
    Sec. 1. As used in this chapter, "adjusted gross receipts" means:
        (1) the total of all cash and property (including checks received by a licensee, whether collected or not) received by a licensee for electronic gaming wagering; minus
        (2) the total of:


            (A) all cash paid out to patrons as winnings for electronic gaming wagering; and
            (B) uncollectible electronic gaming receivables, not to exceed the lesser of:
                (i) a reasonable provision for uncollectible patron checks received from electronic gaming wagering; or
                (ii) two percent (2%) of the total of all sums, including checks, whether collected or not, less the amount paid out to patrons as winnings from electronic gaming wagering.
For purposes of this section, a counter or personal check that is invalid or unenforceable under this article is considered cash received by the licensee from electronic gaming wagering.
    Sec. 2. As used in this chapter, "department" refers to the department of state revenue.
    Sec. 3. (a) A tax is imposed on the adjusted gross receipts received from electronic gaming wagering authorized under this article at the rate of fifteen percent (15%) of the amount of adjusted gross receipts.
    (b) The licensee shall remit the tax imposed by this section to the department before the close of the business day following the day the wagers are made.
    (c) The department may require payment under this section to be made by electronic funds transfer (as defined in IC 4-8.1-2-7 (f)).
    (d) If the department requires taxes to be remitted under this chapter through electronic funds transfer, the department may allow the licensee to file a monthly report to reconcile the amounts remitted to the department.
    Sec. 4. The department shall deposit tax revenue collected under this chapter in the electronic gaming fund.
    Chapter 10. Electronic Gaming Fund and Disbursement of Fund Money
    Sec. 1. As used in this chapter, "fund" refers to the electronic gaming fund established by section 2 of this chapter.
    Sec. 2. The electronic gaming fund is established. Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 3. Sufficient funds are annually appropriated to the commission to administer this article.
    Sec. 4. The fund consists of:
        (1) licensing fees deposited into the fund under IC 7.1-7-7-2 ; and
        (2) taxes deposited into the fund under IC 7.1-7-9-4.
    Sec. 5. 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 these investments shall be deposited in the fund.
    Sec. 6. After funds are appropriated under section 3 of this chapter, each month the treasurer of state shall distribute the money deposited in the electronic gaming fund under this article to the following:
        (1) Forty percent (40%) to the fiscal officer of each city according to the ratio that the city's population bears to the total population of all the cities.
        (2) Thirty percent (30%) to the county treasurer of each county according to the ratio that the county's population bears to the total population of all the counties.
        (3) Thirty percent (30%) to the clerk-treasurer of each town according to the ratio that the town's population bears to the total population of all the towns.
    Sec. 7. Money received under section 6 of this chapter must be used for police officers' and firefighters' pensions.
    Sec. 8. With respect to a reimbursement that the commission is required to pay to the state or to an agency of the state, the commission may enter into an agreement with the state or the state agency under which the commission pays to the state or the state agency an amount reasonably anticipated to cover reimbursable expenses before these expenses are incurred.
    Chapter 11. Crimes and Penalties
    Sec. 1. A person who knowingly or intentionally tampers with an electronic gaming device with intent to interfere with the proper operation of the electronic gaming device commits electronic gaming device tampering, a Class D felony.
    Sec. 2. A person who knowingly or intentionally, with intent to manipulate the outcome, payoff, or operation of an electronic gaming device, manipulates or attempts to manipulate the outcome, payoff, or operation of an electronic gaming device commits electronic gaming device manipulation, a Class D felony.
    Sec. 3. (a) Except as provided in subsection (b), a person who knowingly or intentionally purchases, sells, leases, or places in an establishment for use by the public a type of machine that is authorized by the commission for play but that is not licensed under this article commits unlicensed electronic gaming device operation, a Class D felony.
    (b) Subsection (a) does not apply to a coin operated machine used for amusement only.

SOURCE: IC 33-19-7-7; (03)IN1884.1.3. -->     SECTION 3. IC 33-19-7-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. (a) This section applies to a county in which there is established a pension trust under IC 36-8-10-12.
    (b) From the county share distributed under section 2 of this chapter and deposited into the county general fund, the county fiscal body shall appropriate twelve twenty-four dollars ($12) ($24) for each verified claim presented by the sheriff to the fiscal body under subsection (c). Amounts appropriated under this subsection shall be deposited by the county auditor into the pension trust established under IC 36-8-10-12.
    (c) For each service of a writ, order, process, notice, tax warrant, or other paper completed by the sheriff, the sheriff shall submit to the county fiscal body a verified claim of service.
SOURCE: IC 35-45-5-11; (03)IN1884.1.4. -->     SECTION 4. IC 35-45-5-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11. This chapter does not apply to gambling on electronic gaming devices licensed for use in an establishment licensed under IC 7.1-7.
SOURCE: IC 36-8-1-11.5; (03)IN1884.1.5. -->     SECTION 5. IC 36-8-1-11.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11.5. "Salary of the rank" means the base salary of the rank held by a member of the:
        (1) police department; or
        (2) fire department;
in the year of death, retirement, disability, or occurrence of disease, plus all longevity increases, if provided by the employer, but does not include remuneration or allowances for fringe benefits, incentive pay, holiday pay, insurance, clothing, automobiles, firearms, education, overtime, or compensatory time off.

SOURCE: IC 36-8-5-2; (03)IN1884.1.6. -->     SECTION 6. IC 36-8-5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) The police chief or fire chief may be granted a leave of absence by the authority who appointed him. This appointing authority may also grant a leave of absence to any other full-time, fully paid police officer or firefighter.
    (b) A leave of absence under subsection (a) shall be granted for service in the Indiana general assembly and may also be granted only for one (1) of the following reasons:
        (1) Sickness.
        (2) Disability.
        (3) Sabbatical purposes.
However, a leave of absence because of disability may not be granted to a member of the 1977 fund under this subsection unless a leave granted under subsection (g) has expired without disability benefits having been paid from the 1977 fund. In the case of such an expiration, a leave for purposes of disability may be granted under this subsection but only until the member's eligibility for disability benefits is finally determined.
    (c) Before a leave of absence may be granted for sabbatical purposes, the member must submit a written request explaining and justifying the leave to the appointing authority. Sabbatical purposes must be related to the improvement of the member's professional performance and skills, such as education, special training, work related experience, and exchange programs.
    (d) This subsection applies to leaves of absence granted under subsection (b)(1), (b)(2), or (b)(3). A leave of absence may extend for a period of not more than one (1) year, determined by the appointing authority, and may be renewed upon written request of the member.
    (e) This subsection applies to leaves of absence granted for service in the Indiana general assembly. If a police officer or firefighter serves in the general assembly, he shall be granted a leave for the time spent in this service, including the time spent for committee or legislative council meetings.
    (f) This subsection applies to leaves of absence granted under subsection (b)(1), (b)(2), or (b)(3). A member on leave may receive compensation in an amount determined by the appointing authority, up to a maximum amount that equals his salary before the leave began.
    (g) This subsection applies only to members of the 1977 fund. The local board may grant a leave of absence for purposes of disability to full-time, fully paid police officers or firefighters (including the police chief or fire chief). The leave is subject to the following conditions:
        (1) The police chief or fire chief must make a written determination that there is no suitable and available work on the appropriate department for which the fund member is or may be capable of becoming qualified.
        (2) The leave must be approved by the local board after a hearing conducted under IC 36-8-8-12.7.
        (3) The leave may not begin until the police officer or firefighter has exhausted all paid leave for sickness.
        (4) The leave shall continue until disability benefits are paid from the 1977 fund. However, the leave may not continue for more than six (6) months.
        (5) During the leave:
             (A) the police officer or firefighter is entitled to receive compensation in an amount equal to fifty percent (50%) of the salary of a first class patrolman or first class firefighter on the date the leave begins; or
            (B) if the leave begins after December 31, 2004, a member of a police department or a member of a fire department may receive compensation in an amount determined by the appointing authority, up to a maximum amount that equals the salary of the rank of the member before the leave began.

Payments of compensation under this subsection may not be made from the 1925 fund, the 1937 fund, the 1953 fund, or the 1977 fund.
    (h) Determinations under subsection (g) are not reviewable by the board of trustees of the public employees' retirement fund.
SOURCE: IC 36-8-6-4; (03)IN1884.1.7. -->     SECTION 7. IC 36-8-6-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) The 1925 fund is derived from the following sources:
        (1) From money or other property that is given to the local board for the use of the fund. The local board may take by gift, grant, devise, or bequest of any money, chose in action, personal property, or real property, or an interest in it. The local board shall take the property in the name of the local board and may hold, assign, transfer, or sell it.
        (2) From money, fees, and awards that are paid or given to the police department of the municipality or to a member of the department because of service or duty performed by the department or a member. This includes fines imposed by the safety board against a member of the department, as well as the proceeds from the sale of lost, stolen, and confiscated property recovered or taken into possession by members of the police department in the performance of their duties and sold at a public sale in accordance with law.
        (3) From an assessment made during the period of his employment or for thirty-two (32) years, whichever is shorter, on the salary of each member whom the local board has accepted and designated as a beneficiary of the 1925 fund:
            (A) before January 1, 2005,
an amount equal to six percent (6%) of the salary of a first class patrolman; and
            (B) after December 31, 2004, an amount equal to six percent (6%) of the salary of the rank of the member.

        However, the employer may pay all or a part of the assessment for

the member.
    (b) The secretary of the local board shall prepare a roll of each of the assessments and place opposite the name of every member of the police department the amount of the assessment against him. The treasurer of the local board shall retain out of the salary paid to the member each month the amount of the assessment, other than any amount paid on behalf of the member, and credit it to the 1925 fund. Except to the extent the assessment is paid on behalf of the member, every person becoming a member of the police department is liable for the payment of the assessments and is conclusively considered to agree to pay it and have it deducted from his salary as required in this section.

SOURCE: IC 36-8-6-8; (03)IN1884.1.8. -->     SECTION 8. IC 36-8-6-8 , AS AMENDED BY P.L.185-2002, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) For a member who became disabled before July 1, 2000, the 1925 fund shall be used to pay a pension in a sum determined by the local board, but not exceeding:
        (1) for a disability or disease occurring before July 1, 1982, fifty percent (50%); and
        (2) for a disability or disease occurring after June 30, 1982, and before January 1, 2005, fifty-five percent (55%) of the salary of a first class patrolman; and
        (3) for a disability or disease occurring after December 31, 2004, fifty-five percent (55%) of the salary of the rank of the member;

to a member of the police department who has suffered or contracted a mental or physical disease or disability that renders the patrolman unable to perform the essential functions of any duty in the police department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act. If a member who becomes eligible for a disability pension has more than twenty (20) years of service, the member is entitled to receive a disability pension equal to the pension the member would have received if the member had retired on the date of the disability.
    (b) Except as otherwise provided in this subsection, for a member who becomes disabled after June 30, 2000, and before January 1, 2005, the 1925 fund shall be used to pay a pension in a sum determined by the local board, but not exceeding fifty-five percent (55%) of the salary of a first class patrolman, to a member of the police department who has suffered or contracted a mental or physical disease or disability:
        (1) that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is off duty and is responding to an offense or a reported offense, in the case of a police officer; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);
            (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:
                (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) that renders the member unable to perform the essential functions of any duty in the police department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
If a member who becomes eligible for a disability pension has more than twenty (20) years of service, the member is entitled to receive a disability pension equal to the pension the member would have received if the member had retired on the date of the disability.
    (c) Except as otherwise provided in this subsection, for a member who becomes disabled after June 30, 2000, and before January 1, 2005, the 1925 fund shall be used to pay a pension in a sum determined by the local board, but not exceeding fifty-five percent (55%) of the salary of a first class patrolman, to a member of the police department who has suffered or contracted a mental or physical disease or disability:
        (1) that is not described in subsection (b)(1); and
        (2) that renders the member unable to perform the essential functions of any duty in the police department, considering reasonable accommodation to the extent required by the

Americans with Disabilities Act.
If a member who becomes eligible for a disability pension has more than twenty (20) years of service, the member is entitled to receive a disability pension equal to the pension the member would have received if the member had retired on the date of the disability.
    (d) Except as otherwise provided in this subsection, for a member who becomes disabled after December 31, 2004, the 1925 fund shall be used to pay a pension in a sum determined by the local board, but not exceeding fifty-five percent (55%) of the salary of the rank of the member, to a member of the police department who has suffered or contracted a mental or physical disease or disability:
         (1) that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is off duty and is responding to an offense or a reported offense, in the case of a police officer; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);
            (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:

                 (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) that renders the member unable to perform the essential functions of any duty in the police department, considering reasonable accommodation to the extent required by the

Americans with Disabilities Act.
If a member who becomes eligible for a disability pension has more than twenty (20) years of service, the member is entitled to receive a disability pension equal to the pension the member would have received if the member had retired on the date of the disability.

     (e) Except as otherwise provided in this subsection, for a member who becomes disabled after December 31, 2004, the 1925 fund shall be used to pay a pension in a sum determined by the local board, but not exceeding fifty-five percent (55%) of the salary of the rank of the member, to a member of the police department who has suffered or contracted a mental or physical disease or disability:
        (1) that is not described in subsection (d)(1); and
        (2) that renders the member unable to perform the essential functions of any duty in the police department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
If a member who becomes eligible for a disability pension has more than twenty (20) years of service, the member is entitled to receive a disability pension equal to the pension the member would have received if the member had retired on the date of the disability.

     (f) The member must have retired from active service after a physical examination by the police surgeon or another surgeon appointed by the local board. The disability must be determined solely by the local board after the examination and a hearing conducted under IC 36-8-8-12.7. A member shall be retained on active duty with full pay until the member is retired by the local board because of the disability.
    (e) (g) After a member has been retired upon pension, the local board may, at any time, require the retired member to again be examined by the police surgeon or another surgeon appointed by the local board. After the examination the local board shall conduct a hearing under IC 36-8-8-12.7 to determine whether the disability still exists and whether the retired member should remain on the pension roll. The retired member shall be retained on the pension roll until reinstated in the service of the police department, except in case of resignation. If after the examination and hearing the retired member is found to have recovered from the member's disability and to be again fit for active duty, then the member shall be put on active duty with full pay and from that time is no longer entitled to payments from the 1925 fund. If the member fails or refuses to return to active duty, the member waives all rights to further benefits from the 1925 fund.
    (f) (h) If the salary of a first class patrolman is increased or

decreased, the pension payable under subsection (a), (b), or (c) shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below:
        (1) the amount of the first full monthly pension received by that person; or
        (2) fifty-five percent (55%) of the salary of a first class patrolman;
whichever is greater.
    (g) (i) Time spent receiving disability benefits is considered active service for the purpose of determining retirement benefits until the member has a total of twenty (20) years of service.
    (h) (j) A fund member who is receiving disability benefits under this chapter shall be transferred from disability to regular retirement status when the member becomes fifty-five (55) years of age.

SOURCE: IC 36-8-6-9; (03)IN1884.1.9. -->     SECTION 9. IC 36-8-6-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) Benefits paid under this section are subject to section 1.5 of this chapter.
    (b) The 1925 fund shall be used to provide a member of the police department who retires from active duty after twenty (20) or more years of active duty an annual pension equal to fifty percent (50%) of the salary of a first class patrolman in the police department, plus:
        (1) for a member who retires before January 1, 1986, two percent (2%) of the first class patrolman's salary for each year of service; or
        (2) for a member who retires after December 31, 1985, and before January 1, 2005, one percent (1%) of the first class patrolman's salary for each six (6) months of service;
of the retired member over twenty (20) years. However, the pension may not exceed in any year an amount greater than seventy-four percent (74%) of the salary of a first class patrolman. The pensions shall be computed on an annual basis but shall be paid in not less than twelve (12) equal monthly installments. If the salary of a first class patrolman is increased or decreased, the pension payable shall be proportionately increased or decreased.
    (c) The 1925 fund shall be used to provide a member of the police department who retires after December 31, 2004, from active duty after at least twenty (20) years of service an annual pension equal to fifty percent (50%) of the salary of the rank of the member at the date of retirement. The pension shall be computed on an annual basis but shall be paid in not less than twelve (12) equal monthly installments. If the salary of the rank of the member is increased or decreased after the date of the member's retirement, the pension payable shall be proportionately increased

or decreased.
     (d) If a member voluntarily retires after twenty (20) or more years of service, the member is entitled to retirement and the pension, without reference to his physical condition at the time of application. However, he then relinquishes all rights to other benefits or pensions for temporary disability. After retirement the member is not required to render further services on the police department, is no longer subject to the rules of the department, and may not be deprived of other benefits under this chapter that may accrue to him or his dependents.
    (d) (e) To be retired based upon length of service, only the time served by the member on the regularly constituted police department may be computed. Time served by a member as a special police officer, a merchant police officer, or a private police officer may not be considered in computing length of service.

SOURCE: IC 36-8-6-9.6; (03)IN1884.1.10. -->     SECTION 10. IC 36-8-6-9.6 , AS ADDED BY P.L.118-2000, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9.6. (a) This section applies to an active or retired member who dies other than in the line of duty (as defined in section 10.1 of this chapter).
    (b) A payment shall be made to the surviving spouse of a deceased member in an amount fixed by ordinance, but at least an amount equal to the following:
        (1) To the surviving spouse of a member who died before January 1, 1989, an amount equal to thirty percent (30%) of the monthly pay of a first class patrolman per month during the surviving spouse's life if the spouse did not remarry before September 1, 1983. If the spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse.
        (2) Except as otherwise provided in this subdivision, to the surviving spouse of a member who dies after December 31, 1988, and before January 1, 2005, an amount per month, during the spouse's life, equal to the greater of:
            (A) thirty percent (30%) of the monthly pay of a first class patrolman; or
            (B) fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death.
        However, if the deceased member was not entitled to a benefit because the member had not completed twenty (20) years of service, for purposes of computing the amount under clause (B),

the member's benefit shall be considered to be fifty percent (50%) of the monthly salary of a first class patrolman. The amount provided in this subdivision is subject to adjustment as provided in subsection (e).
         (3) To the surviving spouse of a member who dies after December 31, 2004, an amount per month, during the spouse's life, equal to fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death. However, if the deceased member was not entitled to a benefit because the member had not completed twenty (20) years of service, for purposes of computing the amount, the member's benefit shall be considered to be fifty percent (50%) of the monthly salary of the member at the time of death. The amount provided in this subsection is subject to adjustment as provided in subsection (f).
    (c) Except as otherwise provided in this subsection, a payment shall also be made to each child of a deceased member less than eighteen (18) years of age, in an amount fixed by ordinance, but at least an amount equal to twenty percent (20%) of the monthly pay of a first class patrolman if the member dies before January 1, 2005, and twenty percent (20%) of the salary of the rank that the deceased member held at the time of death if the member dies after December 31, 2004, per month:
        (1) until the child becomes eighteen (18) years of age;
        (2) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university; or
        (3) during the entire period of the child's physical or mental disability;
whichever period is longer. However, the total of benefits under this subsection added to the benefits under subsection (b) may not exceed the maximum benefits computed under section 9 of this chapter for pension payments to a member who retires from active service after twenty (20) years or more of active service. This maximum benefit is equal to fifty percent (50%) of the salary of a first class patrolman in the police department plus, for a member who retired before January 1, 1986, two percent (2%) of the first class patrolman's salary for each year of service of the retired member over twenty (20) years or, for a member who retires after December 31, 1985, plus one percent (1%) of the first class patrolman's salary for each six (6) months of service of the retired member over twenty (20) years. However, the maximum

benefit may not exceed in any year an amount greater than seventy-four percent (74%) of the salary of a first class patrolman.
    (d) Except as otherwise provided in this subsection, if a deceased member leaves no surviving spouse and no child who qualifies for benefits under subsection (c) but does leave a dependent parent or parents, an amount equal to twenty percent (20%) of the monthly pay of a first class patrolman per month from the time of the member's death shall be paid to the dependent parent or parents during their dependency. When both parents survive, the total amount is still twenty percent (20%), to be paid to them jointly. In all cases of payment to a dependent relative of a deceased member, the board is the final judge of the question of necessity and dependency and of the amount to be paid. The board may also reduce or terminate temporarily or permanently a payment to a dependent relative of a deceased member when it determines that the condition of the fund or other circumstances make this action necessary.
    (e) If the salary of a first class patrolman as provided under subsection (b)(1) or (b)(2) is increased or decreased, the pension payable under this section shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
     (f) If the salary of a current member of the police department holding the rank that the deceased member held at the time of death as provided under subsection (b)(3) is increased or decreased, the pension payable under this section shall be proportionately increased or decreased.

SOURCE: IC 36-8-6-10.1; (03)IN1884.1.11. -->     SECTION 11. IC 36-8-6-10.1 , AS AMENDED BY P.L.185-2002, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10.1. (a) This section applies to a member who dies in the line of duty after August 31, 1982.
    (b) (a) If a member dies in the line of duty after August 31, 1982, and before January 1, 2005, the surviving spouse is entitled to a monthly benefit, during the spouse's lifetime, equal to the benefit to which the member would have been entitled on the date of the member's death, but no less than fifty percent (50%) of the monthly wage received by a first class patrolman. If the surviving spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse.
     (b) If a member dies in the line of duty after December 31, 2004, the surviving spouse is entitled to a monthly benefit, during the

spouse's lifetime, equal to the benefit to which the member would have been entitled on the date of the member's death, but not less than fifty percent (50%) of the monthly wage received by a member holding the rank that the deceased member held at the time of death.
    (c) If a member dies in the line of duty after August 31, 1982, and before January 1, 2005, a payment shall also be made to each child of a deceased member less than eighteen (18) years of age, in an amount fixed by ordinance, but at least an amount equal to twenty percent (20%) of the monthly pay of a first class patrolman per month to each child:
        (1) until the child becomes eighteen (18) years of age;
        (2) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university; or
        (3) during the entire period of the child's physical or mental disability;
whichever period is longer.
    (d) The surviving children of the deceased member who are eligible to receive a benefit under subsection (c) may receive an additional benefit in an amount fixed by ordinance, but the total additional benefit under this subsection to all the member's children may not exceed a total of thirty percent (30%) of the monthly wage received by a first class patrolman. However, this limitation does not apply to the children of a member who are physically or mentally disabled.
    (e) If a member dies in the line of duty after December 31, 2004, a payment shall also be made to each child of a deceased member less than eighteen (18) years of age, in an amount fixed by ordinance, but at least an amount equal to twenty percent (20%) of the salary of the rank that the deceased member held at the time of death per month to each child:
        (1) until the child becomes eighteen (18) years of age;
        (2) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university; or
        (3) during the entire period of the child's physical or mental disability;
whichever period is longest.
    (f) The surviving children of the deceased member who are eligible to receive a benefit under subsection (e) may receive an additional benefit in an amount fixed by ordinance, but the total

additional benefit under this subsection to all the member's children may not exceed a total of thirty percent (30%) of the salary of the rank that the deceased member held at the time of death. However, this limitation does not apply to the children of a member who are physically or mentally disabled.
     (g) If a deceased member leaves no surviving spouse and no child who qualifies for benefits under subsection (c) or (e) but does leave a dependent parent or parents, an amount equal to twenty percent (20%) of the monthly pay of a first class patrolman per month from the time of the member's death shall be paid to the dependent parent or parents during their dependency. When both parents survive, the total amount is still twenty percent (20%), to be paid to them jointly. In all cases of payment to a dependent relative of a deceased member, the board is the final judge of the question of necessity and dependency and of the amount to be paid. The board may also reduce or terminate temporarily or permanently a payment to a dependent relative of a deceased member when it determines that the condition of the fund or other circumstances make this action necessary.
    (f) (h) If the salary of a first class patrolman as provided under subsection (a) or (c) is increased or decreased, the pension payable under this section shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
     (i) If the salary of a current member of the police department holding the rank that the deceased member held at the time of death as provided under subsection (b) or (e) is increased or decreased, the pension payable under this section shall be proportionately increased of decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (g) (j) For purposes of this section, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness caused by incident, accident, or violence that results from any action that the member in the member's capacity as a police officer:
        (1) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or
        (2) performs in the course of controlling or reducing crime or enforcing the criminal law.
The term includes a death presumed incurred in the line of duty under IC 5-10-13.


SOURCE: IC 36-8-6-11; (03)IN1884.1.12. -->     SECTION 12. IC 36-8-6-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11. (a) The 1925 fund shall be used to pay an amount, equal to the pensions provided by this chapter in the case of voluntary retirement before January 1, 2005, after twenty (20) years service, to a member of the police department who is dismissed for any reason after having been in actual service for twenty (20) years, including two percent (2%) additional for each full year of service in excess of twenty (20) years' service. However, a pension under this section may not exceed in any year an amount greater than seventy-four percent (74%) of the salary of a first class patrolman.
     (b) The 1925 fund shall be used to pay an amount, equal to the pensions provided by this chapter in the case of voluntary retirement after December 31, 2004, after twenty (20) years service, to a member of the police department who is dismissed for any reason after having been in actual service at least twenty (20) years.
SOURCE: IC 36-8-7-8; (03)IN1884.1.13. -->     SECTION 13. IC 36-8-7-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. The 1937 fund is derived from the following sources:
        (1) From all money and other property that is given to the local board or 1937 fund for the uses and purposes for which the fund is created. The local board may take by gift, grant, devise, or bequest any money, personal property, real estate, or an interest in it. The gift, grant, devise, or bequest may be absolute or in fee simple or upon the condition that only the rents, income, or profits arising from it may be applied to the purposes for which the fund is established.
        (2) All money, fees, rewards, or emoluments that are paid, given, devised, or bequeathed to the fire department or one (1) of the fire companies.
        (3) All money accruing as interest on the securities or investments that are owned by and held in the name of the local board.
        (4) All money received by the local board from the sale or by the maturity of securities or investments owned by the local board.
        (5) An assessment made during the period of his a member's employment or for thirty-two (32) years, whichever is shorter, on the salary of each member equal to:
             (A) before January 1, 2005, six percent (6%) of the salary of a fully paid first class firefighter; and
            (B) after December 31, 2004, six percent (6%) of the salary of the rank of the member.     

        However, the employer may pay all or a part of the assessment for the member. The secretary of the fire department, or the person whose duty it is to make out the payrolls, shall place on the payroll opposite the name of every member the amount of assessment on his the member's salary. The unit's fiscal officer shall deduct monthly from the salary of every member the sum listed opposite his the member's name, other than any amount paid on behalf of the member, and shall credit that amount to the 1937 fund. Except to the extent the assessment is paid on behalf of the member, every person who becomes a member of the fire department is liable for the assessment and is conclusively considered to agree to pay it by having it deducted from his the member's salary as required in this section.
        (6) Appropriations that are made for the fund by the unit's fiscal body.
SOURCE: IC 36-8-7-11; (03)IN1884.1.14. -->     SECTION 14. IC 36-8-7-11 , AS AMENDED BY P.L.185-2002, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11. (a) Benefits paid under this section are subject to section 2.5 of this chapter.
    (b) If a member of the fire department becomes seventy (70) years of age or is found upon examination by a medical officer to be physically or mentally disabled and unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, so as to make necessary the person's retirement from all service with the department, the local board shall retire the person.
    (c) The local board may retire a person for disability only after a hearing conducted under IC 36-8-8-12.7.
    (d) If after the hearing the local board determines that a person who became disabled before July 1, 2000, is disabled and unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, the local board shall then authorize the monthly payment to the person from the 1937 fund of an amount equal to fifty-five percent (55%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension. All physical and mental examinations of members of the fire department shall be made on order of the local board by a medical officer designated by the local board.
    (e) If after the hearing under this section and a recommendation under section 12.5 of this chapter, the 1977 fund advisory committee determines that a person who becomes disabled after June 30, 2000,

and before January 1, 2005:
        (1) has a disability that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is responding to an emergency or reported emergency for which the fund member is trained; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);
            (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:
                (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act;
the local board shall then authorize the monthly payment to the person from the 1937 fund of an amount equal to fifty-five percent (55%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension. All physical and mental examinations of members of the fire department shall be made on order of the local board by a medical officer designated by the local board.
    (f) If after the hearing under this section and a recommendation under section 12.5 of this chapter, the 1977 fund advisory committee determines that a person who becomes disabled after June 30, 2000, and before January 1, 2005:
        (1) has a disability that is not a disability described in subsection (e)(1); and
        (2) is unable to perform the essential functions of the job,

considering reasonable accommodation to the extent required by the Americans with Disabilities Act;
the local board shall then authorize the monthly payment to the person from the 1937 fund of an amount equal to fifty-five percent (55%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension. All physical and mental examinations of members of the fire department shall be made on order of the local board by a medical officer designated by the local board.
     (g) If after the hearing under this section and a recommendation under section 12.5 of this chapter, the 1977 fund advisory committee determines that a person who becomes disabled after December 31, 2004:
        (1) has a disability that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is responding to an emergency or reported emergency for which the fund member is trained; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);
            (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:
                (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act;


the local board shall then authorize the monthly payment to the person from the 1937 fund of an amount equal to fifty-five percent (55%) of the salary of the rank of the member before the date of the disability. All physical and mental examinations of members of the fire department shall be made on order of the local board by a medical officer designated by the local board.
    (h) If after the hearing under this section and a recommendation under section 12.5 of this chapter, the 1977 fund advisory committee determines that a person who becomes disabled after December 31, 2004:
        (1) has a disability that is not a disability described in subsection (e)(1); and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act;
the local board shall then authorize the monthly payment to the person from the 1937 fund of an amount equal to fifty-five percent (55%) of the salary of the rank of the member before the date of the disability. All physical and mental examinations of members of the fire department shall be made on order of the local board by a medical officer designated by the local board.

SOURCE: IC 36-8-7-12.1; (03)IN1884.1.15. -->     SECTION 15. IC 36-8-7-12.1 , AS AMENDED BY P.L.118-2000, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12.1. (a) Benefits paid under this section are subject to section 2.5 of this chapter.
    (b) A member who has been in service twenty (20) years, upon making a written application to the fire chief, may be retired from all service with the department before January 1, 2005, without a medical examination or disability. Except as provided in subsection (f) (g), the local board shall authorize the payment to the retired member of fifty percent (50%) of the salary of a fully paid first class firefighter of the unit at the time of the payment of the pension, plus:
        (1) for a member who retires before January 1, 1986, two percent (2%) of that salary for each year of service; or
        (2) for a member who retires after December 31, 1985, one percent (1%) of that salary for each six (6) months of service;
over twenty (20) years. However, the pension in one (1) year may not exceed an amount greater than seventy-four percent (74%) of the salary of a fully paid first class firefighter.
    (c) A member who has been in service at least twenty (20) years, upon making a written application to the fire chief, may be retired from all service with the department after December 31, 2004,

without a medical examination or disability. Except as provided in subsection (h), the local board shall authorize the payment to the retired member of fifty percent (50%) of the salary of the rank of the member on the date of the member's retirement.
     (d) A member who is discharged from the fire department after having served at least twenty (20) years is entitled to receive the amount under subsection (b) or (c) equal to the amount that the member would have received if the member retired voluntarily.
    (d) (e) All pensions in a class are on an equal basis. The local board may not depart from this chapter in authorizing the payment of pensions.
    (e) (f) The monthly pension payable to a member may not be reduced below the amount of the first full monthly pension received by that person.
    (f) (g) The monthly pension payable to a member who is transferred from disability to regular retirement status and received benefits under section 11(e) or 11(f) of this chapter may not be reduced below fifty-five percent (55%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension.
     (h) The monthly pension payable to a member who is transferred from disability to regular retirement status and received benefits under section 11(g) or 11(h) of this chapter may not be reduced below fifty-five percent (55%) of the current salary of the rank of the member before the date of the member's disability.
    (g) (i) A benefit payable under this section shall be paid in not less than twelve (12) monthly installments.
    (h) (j) A fund member who is receiving disability benefits under this chapter shall be transferred from disability to regular retirement status when the member becomes fifty-five (55) years of age.

SOURCE: IC 36-8-7-12.2; (03)IN1884.1.16. -->     SECTION 16. IC 36-8-7-12.2 , AS ADDED BY P.L.118-2000, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12.2. (a) This section applies to an active or retired member who dies other than in the line of duty (as defined in section 12.4 of this chapter).
    (b) If a member of the fire department or a retired member of the 1937 fund dies and leaves:
        (1) a surviving spouse;
        (2) a child or children less than eighteen (18) years of age;
        (3) a child or children at least eighteen (18) years of age who are mentally or physically incapacitated; or
        (4) a child or children less than twenty-three (23) years of age

who are:
            (A) enrolled in and regularly attending a secondary school; or
            (B) full-time students at an accredited college or university;
the local board shall authorize the payment to the surviving spouse and to the child or children the amount from the fund as prescribed by this section. If the surviving spouse of a deceased member remarried before September 1, 1983, and pension benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse. If the pension of the surviving spouse of a deceased member has ceased by virtue of the spouse's remarriage, and if the person to whom the spouse has remarried was a retired member of the fire department who was also entitled to a pension, then upon the death of the member to whom the spouse had remarried, the spouse is entitled to receive a pension as the surviving spouse of a deceased member as though the spouse had not been remarried.
    (c) If a deceased member of the fire department leaves no surviving spouse or children but leaves a dependent parent, and upon satisfactory proof that the parent was wholly dependent upon the deceased member, the local board shall authorize the monthly payment to the parent from the 1937 fund that is prescribed by this section.
    (d) If a member dies while in active service or after retirement:
        (1) the surviving spouse is entitled to receive an amount fixed by ordinance but not less than:
            (A) for the surviving spouse of a member who dies before January 1, 1989, thirty percent (30%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension; and
            (B) for the surviving spouse of a member who dies after December 31, 1988, but before January 1, 2005, except as otherwise provided in this clause, an amount per month, during the spouse's life, equal to the greater of thirty percent (30%) of the monthly pay of a first class firefighter or fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death (these amounts shall be proportionately increased or decreased if the salary of a first class firefighter is increased or decreased); however, if the deceased member was not entitled to a benefit because the member had not completed twenty (20) years of service, for purposes of computing the second amount under this item, the member's benefit is considered to be fifty percent (50%) of the monthly

salary of a first class firefighter in the unit at the time of payment of the pension; and
            (C) for the surviving spouse of a member who dies after December 31, 2004, an amount per month, during the spouse's life, equal to the greater of thirty percent (30%) of the monthly salary of the rank held by the member at the time of death or fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death (these amounts shall be proportionately increased or decreased if the salary of the rank of a member holding the same rank as the deceased member is increased or decreased). However, if the deceased member was not entitled to a benefit because the member had not completed twenty (20) years of service, for purposes of computing the second amount under this clause, the member's benefit is considered to be fifty percent (50%) of the monthly salary of the rank of the member at the time of death;

        (2) the member's children who are:
            (A) less than eighteen (18) years of age; or
            (B) less than twenty-three (23) years of age if the children are enrolled in and regularly attending a secondary school or are full-time students at an accredited college or university;
        are each entitled to receive an amount fixed by ordinance but not less than twenty percent (20%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension if the member's death occurred before January 1, 2005, and not less than twenty percent (20%) of the current salary of the rank held by the member at the time of death if the member's death occurred after December 31, 2004; and
        (3) each parent of a deceased member who was eligible for a pension is entitled to receive jointly an amount equal to thirty percent (30%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension if the member's death occurred before January 1, 2005, and not less than thirty percent (30%) of the current salary of the rank held by the member at the time of death if the member's death occurred after December 31, 2004.
If the local board finds upon the submission of satisfactory proof that a child eighteen (18) years of age or older is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under subdivision (2)(B), the child is entitled to receive the same

amount as is paid to the surviving spouse of a deceased firefighter, as long as the mental or physical incapacity continues. A sum paid for the benefit of a child or children shall be paid to the remaining parent, if alive, as long as the child or children reside with and are supported by the parent. If the parent dies, the sum shall be paid to the lawful guardian of the child or children.
    (e) The monthly pension payable to a survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (f) A benefit payable under this section shall be paid in not less than twelve (12) monthly installments.

SOURCE: IC 36-8-7-12.4; (03)IN1884.1.17. -->     SECTION 17. IC 36-8-7-12.4 , AS AMENDED BY P.L.185-2002, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12.4. (a) This section applies to an active member who dies in the line of duty after August 31, 1982.
    (b) If a member dies in the line of duty after August 31, 1982, and before January 1, 2005, the surviving spouse is entitled to a monthly benefit, during the spouse's lifetime, equal to the benefit to which the member would have been entitled on the date of the member's death, but not less than fifty percent (50%) of the monthly wage received by a fully paid first class firefighter. If the spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse. If the pension of the surviving spouse of a deceased member has ceased by virtue of the spouse's remarriage, and if the person to whom the spouse has remarried was a retired member of the fire department who was also entitled to a pension, then upon the death of the member to whom the spouse had remarried, the spouse is entitled to receive a pension as the surviving spouse of a deceased member as though the spouse had not been remarried.
    (c) If a member dies in the line of duty after December 31, 2004, the surviving spouse is entitled to a monthly benefit, during the spouse's lifetime, equal to the benefit to which the member would have been entitled on the date of the member's death, but not less than fifty percent (50%) of the monthly wage received by a member holding the rank that the deceased member held at the time of death.
     (d) If a member dies in the line of duty while in active service after August 31, 1982, and before January 1, 2005, the member's children who are:
        (1) less than eighteen (18) years of age; or
        (2) less than twenty-three (23) years of age if the children are enrolled in and regularly attending a secondary school or are full-time students at an accredited college or university;
are each entitled to receive an amount fixed by ordinance but not less than twenty percent (20%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension.
     (e) If a member dies in the line of duty while in active service after December 31, 2004, the member's children who are:
        (1) less than eighteen (18) years of age; or
        (2) less than twenty-three (23) years of age if the children are enrolled in and regularly attending a secondary school or are full-time students at an accredited college or university;
are each entitled to receive an amount fixed by ordinance but not less than twenty percent (20%) of the current salary of the rank that the deceased member held at the time of death.

    (d) (f) The surviving children of the deceased member who are eligible to receive a benefit under subsection (c) (d) may receive an additional benefit in an amount fixed by ordinance, but the total additional benefit under this subsection to all the member's children may not exceed a total of thirty percent (30%) of the monthly wage received by a first class firefighter. However, this limitation does not apply to the children of a member who are physically or mentally disabled.
     (g) The surviving children of the deceased member who are eligible to receive a benefit under subsection (e) may receive an additional benefit in an amount fixed by ordinance, but the total additional benefit under this subsection to all the member's children may not exceed a total of thirty percent (30%) of the current salary of the rank that the deceased member held at the time of death. However, this limitation does not apply to the children of a member who are physically or mentally disabled.
    (e) (h) If a deceased member of the fire department leaves no surviving spouse or children but leaves a dependent parent, and upon satisfactory proof that the parent was wholly dependent upon the deceased member, the local board shall authorize the monthly payment to the parent from the 1937 fund. Each parent of a deceased member who was eligible for a pension under this subsection is entitled to receive jointly an amount equal to thirty percent (30%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension.
    (f) (i) For purposes of this section, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness caused

by incident, accident, or violence that results from any action that the member, in the member's capacity as a firefighter:
        (1) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or
        (2) performs while on the scene of an emergency run (including false alarms) or on the way to or from the scene.
The term includes a death presumed incurred in the line of duty under IC 5-10-13.
    (g) (j) If the local board finds upon the submission of satisfactory proof that a child eighteen (18) years of age or older is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under subsection (c)(2) (d)(2) or (e)(2), the child is entitled to receive the same amount as is paid to the surviving spouse of a deceased firefighter, as long as the mental or physical incapacity continues. A sum paid for the benefit of a child or children shall be paid to the remaining parent, if alive, as long as the child or children reside with and are supported by the parent. If the parent dies, the sum shall be paid to the lawful guardian of the child or children.
    (h) (k) The monthly pension payable to a survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (i) (l) A benefit payable under this section shall be paid in not less than twelve (12) monthly installments.

SOURCE: IC 36-8-7.5-8; (03)IN1884.1.18. -->     SECTION 18. IC 36-8-7.5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. The 1953 fund is derived from the following sources:
        (1) From money or other property that is given to the local board for the use of the fund. The local board may take by gift, grant, devise, or bequest any money, chose in action, personal property, real property, or use the same for the purposes of the 1953 fund or for such purposes specified by the grantor.
        (2) From money, fees, and awards of every nature that are given to the police department of the municipality or to a member of the department because of service or duty performed by the department or a member. This includes fines imposed by the safety board against a member of the department, all money from gambling cases and from gambling devices as well as the proceeds from the sale of lost, stolen, and confiscated property recovered or taken into possession by members of the police department in the performance of their duties and confiscated by court order, and sold at a public sale in accordance with law.
        (3) From an assessment made during the period of his

employment or for thirty-two (32) years, whichever is shorter, on the salary of each member whom the local board has accepted and designated as a beneficiary of the 1953 fund, an amount equal to:
             (A) before January 1, 2005, six percent (6%) of the salary of a first class patrolman; and
            (B) after December 31, 2004, an amount equal to six percent (6%) of the salary of the rank of the member.

        However, the employer may pay all or a part of the assessment for the member.
        (4) From the income from investments of the 1953 fund.
        (5) From the proceeds of a tax levied by the police special service district upon taxable property in the district, which the treasurer of state shall collect and credit to the 1953 fund, to be used exclusively by the 1953 fund.

SOURCE: IC 36-8-7.5-12; (03)IN1884.1.19. -->     SECTION 19. IC 36-8-7.5-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12. (a) Benefits paid under this section are subject to section 1.5 of this chapter.
    (b) The 1953 fund shall be used to provide a member of the police department who retires from active duty after twenty (20) or more years of active duty an annual pension equal to fifty percent (50%) of the salary of a first class patrolman in the police department, plus:
        (1) for a member who retires before January 1, 1986, two percent (2%) of the first class patrolman's salary for each year of service; or
        (2) for a member who retires after December 31, 1985, and before January 1, 2005, one percent (1%) of the first class patrolman's salary for each six (6) months of service;
of the retired member over twenty (20) years. The pension may not exceed in any year an amount greater than seventy-four percent (74%) of the salary of a first class patrolman. The pensions shall be computed on an annual basis but shall be paid in twelve (12) equal monthly installments. If the salary of a first class patrolman is increased or decreased, the pension payable shall be proportionately increased or decreased.
    (c) The 1953 fund shall be used to provide a member of the police department who retires after December 31, 2004, from active duty after at least twenty (20) years of service an annual pension equal to fifty percent (50%) of the salary of the rank of the member at the date of retirement. The pension shall be computed on an annual basis but shall be paid in not less than twelve (12) equal monthly installments. If the salary of the rank of the member is increased or decreased after the date of the member's

retirement, the pension payable shall be proportionately increased or decreased.
     (d) If a member retires upon his voluntary application after twenty (20) years or more of active service, he then relinquishes all rights to other benefits or pensions for disability during the time of his retirement.
    (d) (e) After retirement the member is not required to render further services on the police department and is no longer subject to the rules of the police department, unless a national emergency has been declared by the local board, on application by the executive, the safety board, and the police chief of the city. Upon declaration of such an emergency, the retired member, if physically able, shall return to active duty under the rank he attained at the time of his retirement, and if he refuses to return to active duty upon being declared physically fit, he forfeits his right to receive his pension until the time he returns to active duty and again is retired or discharged from service.
    (e) (f) No pension, annuity, or benefit provided by this chapter is payable by the local board except upon written application by the member of the police department, or the surviving spouse or other dependent, upon the forms and with the information required by the local board

SOURCE: IC 36-8-7.5-13; (03)IN1884.1.20. -->     SECTION 20. IC 36-8-7.5-13 , AS AMENDED BY P.L.185-2002, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13. (a) For a member who becomes disabled before July 1, 2000, the 1953 fund shall be used to pay a pension in an annual sum equal to:
        (1) fifty percent (50%) for a disease or disability occurring before July 1, 1991; and
        (2) fifty-five percent (55%) for a disease or disability occurring after June 30, 1991;
of the salary of a first class patrolman in the police department, computed and payable as prescribed by section 12(b) of this chapter, to an active member of the police department who has been in active service for more than one (1) year and who has suffered or contracted a mental or physical disease or disability that render the member permanently unfit for active duty in the police department, or to an active member of the police department who has been in active service for less than one (1) year who has suffered or received personal injury from violent external causes while in the actual discharge of the member's duties as a police officer. The pensions provided for in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department.
    (b) For a member who becomes disabled after June 30, 2000, and before January 1, 2005, the 1953 fund shall be used to pay a pension in an annual sum equal to fifty-five percent (55%) of the salary of a first class patrolman in the police department, computed on an annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department who:
        (1) has suffered or incurred a disability that renders the member permanently unfit for active duty in the police department and that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is off duty and is responding to an offense or a reported offense; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);
            (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:
                (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pensions provided for in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department. If the salary of a first class patrolman is increased or decreased, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first

full monthly pension received by that person.
    (c) For a member who becomes disabled after June 30, 2000, and before January 1, 2005, the 1953 fund shall be used to pay a pension in an annual sum equal to fifty-five percent (55%) of the salary of a first class patrolman in the police department, computed on an annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department who has been in active service for at least one (1) year and:
        (1) has suffered or incurred a disability that:
            (A) renders the member permanently unfit for active duty in the police department; and
            (B) is not described in subsection (b)(1); and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pension provided in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department. If the salary of a first class patrolman is increased or decreased, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (d) For a member who becomes disabled after December 31, 2004, the 1953 fund shall be used to pay a pension in an annual sum equal to fifty-five percent (55%) of the salary of the rank of the member before the disability, computed on an annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department who:
        (1) has suffered or incurred a disability that renders the member permanently unfit for active duty in the police department and that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is off duty and is responding to an offense or a reported offense; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);

             (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the

fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:
                 (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pensions provided for in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department. If the salary of the rank the disabled member holds is increased or decreased after the date of the member's disability, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member may not be reduced below the amount of the first full monthly pension received by that person.

     (e) For a member who becomes disabled after December 31, 2004, the 1953 fund shall be used to pay a pension in an annual sum equal to fifty-five percent (55%) of the salary of the rank of the member in the police department, computed on an annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department who has been in active service for at least one (1) year and:
        (1) has suffered or incurred a disability that:
            (A) renders the member permanently unfit for active duty in the police department; and
            (B) is not described in subsection (b)(1); and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pension provided in this subsection shall be paid only so long as the member of the police department remains unfit for active

duty in the police department. If the salary of the rank the disabled member holds is increased or decreased after the date of the member's disability, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member may not be reduced below the amount of the first full monthly pension received by that person.
     (f) For a member who became disabled before July 1, 2000, the 1953 fund shall be used to pay temporary benefits in an annual sum equal to thirty percent (30%) of the salary of a first class patrolman in the police department, computed and payable as prescribed by section 12(a) of this chapter, to an active member of the police department who has been in active service for more than one (1) year and who has suffered any physical or mental disability that renders the member temporarily or permanently unable to perform his duties as a member of the police department, or to an active member of the police department who has been in active service for less than one (1) year and who has suffered or received personal injury from violent external causes while in the actual discharge of the member's duties as a police officer, until the time the member is physically and mentally able to return to active service on the police department.
    (e) (g) For a member who becomes disabled after June 30, 2000, and before January 1, 2005, the 1953 fund shall be used to pay a pension in an annual sum equal to thirty percent (30%) of the salary of a first class patrolman in the police department, computed on an annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department who:
        (1) suffers or incurs a disability that renders the member temporarily unfit for active duty in the police department and that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is off duty and is responding to an offense or a reported offense, in the case of a police officer; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);
            (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational

mind, upon consideration of all of the circumstances, that:
                (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pension provided in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department. If the salary of a first class patrolman is increased or decreased, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (f) (h) For a member who becomes disabled after June 30, 2000, and before January 1, 2005, the 1953 fund shall be used to pay temporary benefits in an annual sum equal to thirty percent (30%) of the salary of a first class patrolman in the police department, computed on an annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department:
        (1) who has been in active service for at least one (1) year;
        (2) suffers or incurs a disability that:
            (A) renders the member temporarily unfit for active duty in the police department; and
            (B) is not described in subsection (e)(1); (g)(1), and
        (3) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pension provided for in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department. If the salary of a first class patrolman is increased or decreased, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.


     (i) For a member who becomes disabled after December 31, 2004, the 1953 fund shall be used to pay a pension in an annual sum equal to thirty percent (30%) of the salary of the rank of the member before the member's disability, computed on an annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department who:
        (1) suffers or incurs a disability that renders the member temporarily unfit for active duty in the police department and that is:
            (A) the direct result of:
                (i) a personal injury that occurs while the fund member is on duty;
                (ii) a personal injury that occurs while the fund member is off duty and is responding to an offense or a reported offense, in the case of a police officer; or
                (iii) an occupational disease (as defined in IC 22-3-7-10 ), including a duty related disease that is also included within clause (B);
            (B) a duty related disease (for purposes of this section, a "duty related disease" means a disease arising out of the fund member's employment; a disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:

                 (i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
                (ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
                (iii) the disease can be traced to the fund member's employment as the proximate cause); or
            (C) a disability presumed incurred in the line of duty under IC 5-10-13 ; and
        (2) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pension provided in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department. If the salary of the rank the disabled member holds is increased or decreased after the date of the

member's disability, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (j) For a member who becomes disabled after December 31, 2004, the 1953 fund shall be used to pay temporary benefits in an annual sum equal to thirty percent (30%) of the salary of the rank of the member before the member's disability, computed on an
annual basis and payable in twelve (12) equal monthly installments, to an active member of the police department who:
        (1) has been in active service for at least one (1) year;
        (2) suffers or incurs a disability that:
            (A) renders the member temporarily unfit for active duty in the police department; and
            (B) is not described in subsection (e)(1); and
        (3) is unable to perform the essential functions of the job, considering reasonable accommodation to the extent required by the Americans with Disabilities Act.
The pension provided for in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department. If the salary of the rank the disabled member holds is increased or decreased after the date of the member's disability, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.

    (g) (k) If an application is made by an active member of the police department because of physical or mental disability for temporary benefits as provided in subsection (d), (e), or (f), (g), (h), (i), or (j), the benefit is not payable until the local board determines after a hearing conducted under IC 36-8-8-12.7 that the member is unfit for active duty on the police department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act. Before the hearing, a physician to be appointed by the local board shall examine the member and certify in writing whether in the physician's opinion the member is unfit, physically or mentally, for active duty in the police department. After the pension or benefit has been granted by the local board, the payment commences with the original date of the injury or illness causing the disability.
    (h) (l) A member who has been granted a disability benefit under this section and who fails or refuses to submit to a physical

examination at any time by the local board physician has no right in the future to receive the disability benefit, and any benefit that has been granted shall be immediately canceled by the local board.
    (i) (m) The local board may, from time to time, require a member of the police department who is receiving at any time disability benefits or pensions as provided in this section to be examined by the physician appointed by the local board. After the examination, the local board shall conduct a hearing under IC 36-8-8-12.7 to determine whether the disability still exists and whether the member should continue to receive the pension or benefit. If after the examination and hearing the member is found to have recovered from the member's disability and is fit for active duty on the police department, then upon written notice to the member by the local board, the member shall be reinstated in active service, the safety board shall be informed of the action of the local board, and from that time the member is no longer entitled to payments from the 1953 fund. If the member fails or refuses to return to active duty after ordered by the local board, the member ceases to be a member of the 1953 fund and waives all rights to any further pensions or benefits provided by the 1953 fund.
    (j) (n) Notwithstanding any other provision of this chapter, no disability benefit may be paid for any disability based upon or caused by any mental or physical condition that a member had at the time the member entered or reentered the member's active service in the police department.
    (k) (o) If a member who is receiving disability benefits under subsection (a), (b), or (c) for a disease or disability occurring after June 30, 1991, and before January 1, 2005, is transferred from disability to regular retirement status, the member's monthly pension may not be reduced below fifty-five percent (55%) of the salary of a first class patrolman at the time of payment of the pension.
     (p) If a member who is receiving disability benefits under subsection (d) or (e) for a disease or disability occurring after December 31, 2004, is transferred from disability to regular retirement status, the member's monthly pension may not be reduced below fifty-five percent (55%) of the current salary of the rank of the member before the member's disability.
    (l) (q) To the extent required by the Americans with Disabilities Act, the transcripts, reports, records, and other material compiled to determine the existence of a disability shall be:
        (1) kept in separate medical files for each member; and
        (2) treated as confidential medical records.
    (m) (r) A fund member who is receiving disability benefits under

this chapter shall be transferred from disability to regular retirement status when the member becomes fifty-five (55) years of age.

SOURCE: IC 36-8-7.5-13.6; (03)IN1884.1.21. -->     SECTION 21. IC 36-8-7.5-13.6 , AS AMENDED BY P.L.1-2001, SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13.6. (a) This section applies to an active or retired member who dies other than in the line of duty (as defined in section 14.1 of this chapter).
    (b) The 1953 fund shall be used to pay an annuity, computed under subsection (g) and payable in monthly installments, to the surviving spouse of a member of the fund who dies from any cause after having served for one (1) year or more. The annuity continues during the life of the surviving spouse unless the spouse remarried before September 1, 1983. If the spouse remarried before September 1, 1983, benefits ceased on the date of remarriage. If a member of the fund died, but not in the line of duty, and the member's surviving spouse remarried before September 1, 1983, the benefits of the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse.
    (c) The 1953 fund shall also be used to pay:
         (1) an annuity equal to twenty percent (20%) of the salary of a first class patrolman on the police department, computed as provided in section 12(b) of this chapter and payable in monthly installments, to each dependent child of a member of the fund who dies before January 1, 2005; or
        (2) an annuity equal to twenty percent (20%) of the salary of the rank of the member, computed as provided in section 12(c) of this chapter and payable in monthly installments, to each dependent child of a member of the fund who dies after December 31, 2004;

from any cause after having served for one (1) year or more as an active member of the police department. The pension to each child continues
        (1) until the child becomes eighteen (18) years of age,
        (2) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university, or
        (3) during the entire period of the child's physical or mental disability,
whichever period is longest. However, the pension to the child ceases if the child marries or is legally adopted by any person.
    (d) If a deceased member leaves no surviving spouse and no child who qualifies for a benefit under subsection (c) but does leave a dependent parent or parents, the 1953 fund is used to pay an annuity

not greater than a sum equal to twenty percent (20%) of the salary of a first class patrolman on the police department, computed and payable as provided in section 12(b) of this chapter, payable monthly to the dependent parent or parents of a member of the police department who dies from any cause after having served for one (1) year or more as an active member of the police department. The annuity continues for the remainder of the life or lives of the parent or parents as long as either or both fail to have sufficient other income for their proper care, maintenance, and support.
    (e) In all cases of payment to a dependent relative of a deceased member, the local board is the final judge of the question of necessity and dependency and of the amount within the stated limits to be paid. The local board may also reduce or terminate temporarily or permanently a payment to a dependent relative of a deceased member when it determines that the condition of the 1953 fund or other circumstances make this action necessary.
    (f) If the salary of a:
         (1) first class patrolman as provided under subsection (g)(1) or (g)(2); or
        (2) member holding the rank that the deceased member held at the time of death as provided in subsection (g)(3);

is increased or decreased, the pension payable under this section shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (g) Except as otherwise provided in this subsection, the annuity payable under subsection (b) equals one (1) of the following:
        (1) For the surviving spouse of a member who dies before January 1, 1989, thirty percent (30%) of the salary of a first class patrolman.
        (2) For the surviving spouse of a member who dies after December 31, 1988, and before January 1, 2005, an amount per month during the spouse's life equal to the greater of:
            (A) thirty percent (30%) of the monthly pay of a first class patrolman; or
            (B) fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death.
        However, if the deceased member was not entitled to a benefit because the member had not completed twenty (20) years of service, for the purposes of computing the amount under subdivision (2)(B) the member's benefit is considered to be fifty

percent (50%) of the monthly salary of a first class patrolman. The amount provided in this subdivision is subject to adjustment as provided in subsection (f).
         (3) For the surviving spouse of a member who dies after December 31, 2004, an amount per month during the spouse's life equal to the greater of:
            (A) thirty percent (30%) of the monthly salary of the rank held by the member at the time of death; or
            (B) fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death.
        However, if the deceased member was not entitled to a benefit because the member had not completed twenty (20) years of service, for the purposes of computing the amount under clause (B) the member's benefit is considered to be fifty percent (50%) of the monthly salary of the member at the time of death. The amount provided in this subdivision is subject to adjustment as provided in subsection (f).

SOURCE: IC 36-8-7.5-14.1; (03)IN1884.1.22. -->     SECTION 22. IC 36-8-7.5-14.1 , AS AMENDED BY P.L.185-2002, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14.1. (a) This section applies to an active member who dies in the line of duty after August 31, 1982.
    (b) If a member dies in the line of duty after August 31, 1982, and before January 1, 2005, the surviving spouse is entitled to a monthly benefit, during the spouse's lifetime, equal to the benefit to which the member would have been entitled on the date of the member's death, but not less than fifty percent (50%) of the monthly wage received by a first class patrolman. If the spouse remarried before September 1, 1983, benefits ceased on the date of remarriage. However, if a member of the police department dies in the line of duty after August 31, 1982, and the member's surviving spouse remarried before September 1, 1983, the benefits for the surviving spouse shall be reinstated on July 1, 1995, and continue during the life of the surviving spouse.
    (c) If a member dies in the line of duty after December 31, 2004, the surviving spouse is entitled to a monthly benefit, during the spouse's lifetime, equal to the benefit to which the member would have been entitled on the date of the member's death, but not less than fifty percent (50%) of the monthly wage received by a member holding the rank that the deceased member held at the time of death.
     (d) If a member dies in the line of duty after August 31, 1982, and before January 1, 2005, the 1953 fund shall also be used to pay

an annuity equal to twenty percent (20%) of the salary of a first class patrolman on the police department, computed as provided in section 12(b) of this chapter and payable in monthly installments, to each dependent child of a member of the fund who dies from any cause while in the actual discharge of duties as a police officer. The pension to each child continues:
        (1) until the child becomes eighteen (18) years of age;
        (2) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university; or
        (3) during the entire period of the child's physical or mental disability;
whichever period is longest. However, the pension to the child ceases if the child marries or is legally adopted by any person.
    (d) (e) The surviving children of the deceased member who are eligible to receive a benefit under subsection (c) (d) may receive an additional benefit in an amount fixed by ordinance, but the total benefit to all the member's children under this subsection may not exceed a total of thirty percent (30%) of the monthly wage received by a first class patrolman. However, this limitation does not apply to the children of a member who are physically or mentally disabled.
     (f) If a member dies in the line of duty after December 31, 2004, the 1953 fund shall also be used to pay an annuity equal to twenty percent (20%) of the salary of the rank that the member held at the time of the member's death, computed as provided in section 12(b) of this chapter and payable in monthly installments, to each dependent child of a member of the fund who dies from any cause while in the actual discharge of duties as a police officer. The pension to each child continues:
        (1) until the child becomes eighteen (18) years of age;
        (2) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university; or
        (3) during the entire period of the child's physical or mental disability;
whichever period is longest. However, the pension to the child ceases if the child marries or is legally adopted by any person.
    (g) The surviving children of the deceased member who are eligible to receive a benefit under subsection (f) may receive an additional benefit in an amount fixed by ordinance, but the total benefit to all the member's children under this subsection may not

exceed a total of thirty percent (30%) of the monthly salary of the rank that the deceased member held at the time of the member's death. However, this limitation does not apply to the children of a member who are physically or mentally disabled.
    (e) (h) If a deceased member leaves no surviving spouse and no child who qualifies for a benefit under subsection (c) (d) or (f) but does leave a dependent parent or parents, the 1953 fund shall be used to pay an annuity not greater than a sum equal to twenty percent (20%) of the salary of a first class patrolman on the police department, computed and payable as provided in section 12(b) of this chapter, payable monthly to the dependent parent or parents of a member of the police department who dies from any cause while in the actual discharge of duties as a police officer. The annuity continues for the remainder of the life or lives of the parent or parents as long as either or both fail to have sufficient other income for their proper care, maintenance, and support.
    (f) (i) In all cases of payment to a dependent relative of a deceased member, the local board is the final judge of the question of necessity and dependency and of the amount within the stated limits to be paid. The local board may also reduce or terminate temporarily or permanently a payment to a dependent relative of a deceased member when it determines that the condition of the 1953 fund or other circumstances make this action necessary.
    (g) (j) If the salary of a first class patrolman as provided under subsection (b) or (d) is increased or decreased, the pension payable under this section shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
     (k) If the salary of a current member of the police department holding the rank that the deceased member held at the time of the member's death as provided under subsection (c) or (f) is increased or decreased, the pension payable under this section shall be proportionately increased or decreased. However, the monthly pension payable to a survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (h) (l) For purposes of this section, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness caused by incident, accident, or violence that results from any action that the member, in the member's capacity as a police officer:
        (1) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or


        (2) performs in the course of controlling or reducing crime or enforcing the criminal law.
The term includes a death presumed incurred in the line of duty under IC 5-10-13.
SOURCE: IC 36-8-8-8; (03)IN1884.1.23. -->     SECTION 23. IC 36-8-8-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 8. (a) Each fund member shall contribute during the period of his employment or for thirty-two (32) years, whichever is shorter:
         (1) before January 1, 2005, an amount equal to six percent (6%) of the salary of a first class patrolman or firefighter; and
        (2) after December 31, 2004, an amount equal to six percent (6%) of the salary of the rank of the member.

However, the employer may pay all or a part of the contribution for the member. The amount of the contribution, other than contributions paid on behalf of a member, shall be deducted each pay period from each fund member's salary by the disbursing officer of the employer. The employer shall send to the PERF board each year on March 31, June 30, September 30, and December 31, for the calendar quarters ending on those dates, a certified list of fund members and a warrant issued by the employer for the total amount deducted for fund members' contributions.
    (b) If a fund member ends his employment other than by death or disability before he completes twenty (20) years of active service, the PERF board shall return to him in a lump sum his contributions plus interest as determined by the PERF board. If the fund member returns to service, he is entitled to credit for the years of service for which his contributions were refunded if he repays the amount refunded to him in either a lump sum or a series of payments determined by the PERF board.
SOURCE: IC 36-8-8-9; (03)IN1884.1.24. -->     SECTION 24. IC 36-8-8-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) This section applies to all police officers and firefighters who converted their benefits under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both of which were repealed September 1, 1981).
    (b) A police officer or firefighter who converted his benefits from a 1925, 1937, or 1953 fund to the benefits and conditions of this chapter is not entitled to receive any benefits from the original fund. However, he is entitled to credit for all years of service for which he would have received credit before his conversion in that original fund.
    (c) A police officer or firefighter who:
        (1) converted his benefits from a 1925, 1937, or 1953 fund;
        (2) retired or became disabled on or before June 30, 1998; and
        (3) is entitled to receive benefits provided under this chapter based on the eligibility requirements of this chapter;
shall be treated as a member of this fund for purposes of paying his benefits from the 1977 fund effective for benefits paid on or after October 1, 1998. Prior to October 1, 1998, he remains a member of the original fund entitled to receive only the benefits provided under this chapter based on the eligibility requirements of this chapter.
    (d) A police officer or firefighter who:
        (1) converted his benefits from a 1925, 1937, or 1953 fund;
        (2) who did not retire or become disabled on or before June 30, 1998; and
        (3) who is entitled to receive benefits provided under this chapter based on the eligibility requirements of this chapter;
remains a member of that original fund but is entitled to receive only the benefits provided under this chapter and based on the eligibility requirements of this chapter.
    (e) A police officer or firefighter who converted shall contribute:
         (1) six percent (6%) of the salary of a first class patrolman or firefighter before January 1, 2005; and
         (2) an amount equal to six percent (6%) of the salary of the rank of the member after December 31, 2004;
to the 1925, 1937, or 1953 fund. This amount shall be deducted from his salary each pay period by the disbursing officer of the employer. Contributions under this subsection may not be refunded.
SOURCE: IC 36-8-8-11; (03)IN1884.1.25. -->     SECTION 25. IC 36-8-8-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 11. (a) Benefits paid under this section are subject to section 2.5 of this chapter.
    (b) Each fund member who qualifies for a retirement benefit payment under section 10(b) of this chapter and who retires before January 1, 2005, is entitled to receive a monthly benefit equal to fifty percent (50%) of the monthly salary of a first class patrolman or firefighter in the year the member ended his active service plus:
        (1) for a member who retires before January 1, 1986, two percent (2%) of that salary for each full year of active service; or
        (2) for a member who retires after December 31, 1985, and before January 1, 2005, one percent (1%) of that salary for each six (6) months of active service;
over twenty (20) years, to a maximum of twelve (12) years.
    (c) Each fund member who qualifies for a retirement benefit under section 10(b) of this chapter and who retires after December 31, 2004, is entitled to receive a monthly benefit equal to fifty percent (50%) of the monthly salary of the rank held by the

member at the time the member ended active service.
     (d) Each fund member who qualifies for a retirement benefit payment under section 10(c) of this chapter and who retires before January 1, 2005, is entitled to receive a monthly benefit equal to fifty percent (50%) of the monthly salary of a first class patrolman or firefighter in the year the member ended his active service plus one percent (1%) of that salary for each six (6) months of active service over twenty (20) years, to a maximum of twelve (12) years, all actuarially reduced for each month (if any) of benefit payments prior to fifty-two (52) years of age, by a factor established by the fund's actuary from time to time.
     (e) Each fund member who qualifies for a retirement benefit payment under section 10(c) of this chapter and who retires after December 31, 2004, is entitled to receive a monthly benefit equal to fifty percent (50%) of the monthly salary of the rank held by the member at the time the member ended active service all actuarially reduced for each month (if any) of benefit payments before fifty-two (52) years of age, by a factor established periodically by the fund's actuary.

SOURCE: IC 36-8-8-13.5; (03)IN1884.1.26. -->     SECTION 26. IC 36-8-8-13.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13.5. (a) This section applies only to a fund member who:
        (1) is hired for the first time after December 31, 1989;
        (2) chooses coverage by this section and section 12.5 of this chapter under section 12.4 of this chapter; or
        (3) is described in section 12.3(c)(2) of this chapter.
    (b) A fund member who is determined to have a Class 1 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit:
         (1) equal to forty-five percent (45%) of the monthly salary of a first class patrolman or firefighter for a Class 1 impairment occurring before January 1, 2005; and
        (2) equal to forty-five percent (45%) of the monthly salary of the rank of the member at the time of the occurrence of the Class 1 impairment
for a Class 1 impairment occurring after December 31, 2004;
in the year of the local board's determination of impairment.
    (c) A fund member who is determined to have a Class 2 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable

accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit:
         (1) equal to twenty-two percent (22%) of the monthly salary of a first class patrolman or firefighter for a Class 2 impairment occurring before January 1, 2005, in the year of the local board's determination of impairment plus one-half percent (0.5%) of that salary for each year of service, up to a maximum of thirty (30) years of service; and
        (2) equal to twenty-two percent (22%) of the monthly salary of the rank of the member at the time of the occurrence of the Class 2 impairment for a Class 2 impairment occurring after December 31, 2004.
    (d) For applicants hired before March 2, 1992, a fund member who is determined to have a Class 3 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit:
         (1) equal to the product of the member's years of service (not to exceed thirty (30) years of service) multiplied by one percent (1%) of the monthly salary of a first class patrolman or firefighter for a Class 3 impairment occurring before January 1, 2005; and
        (2) equal to the product of the member's years of service (not to exceed thirty (30) years of service) multiplied by one percent (1%) of the
monthly salary of the rank of the member at the time of the occurrence of the Class 3 impairment for a Class 3 impairment occurring after December 31, 2004;
in the year of the local board's determination of impairment.
    (e) For applicants hired after March 1, 1992, or described in section 12.3(c)(2) of this chapter, a fund member who is determined to have a Class 3 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to the following benefits instead of benefits provided under subsection (d):
        (1) If the fund member did not have a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund, and the Class 3 impairment occurred:
             (A) before January 1, 2005, the fund member is entitled to a monthly base benefit equal to the product of the member's

years of service, not to exceed thirty (30) years of service, multiplied by one percent (1%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment; or
             (B) after December 31, 2004, the fund member is entitled to a monthly base benefit equal to the product of the member's years of service, not to exceed thirty (30) years of service, multiplied by one percent (1%) of the monthly salary of the rank of the member at the time of the occurrence of the Class 3 impairment in the year of the local board's determination of impairment.
        (2) Except as provided in subdivision (5), a fund member is entitled to receive the benefits set forth in subdivision (1) if:
            (A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund;
            (B) the fund member has a Class 3 impairment that is not related in any manner to the Class 3 excludable condition described in clause (A); and
            (C) the Class 3 impairment described in clause (B) occurs after the fund member has completed four (4) years of service with the employer after the date the fund member entered or reentered the fund.
        (3) Except as provided in subdivision (5), a fund member is not entitled to a monthly base benefit for a Class 3 impairment if:
            (A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund; and
            (B) the Class 3 impairment occurs before the fund member has completed four (4) years of service with the employer after the date the fund member entered or reentered the fund.
        (4) A fund member is not entitled to a monthly base benefit for a Class 3 impairment if:
            (A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund; and
            (B) the Class 3 impairment is related in any manner to the Class 3 excludable condition.
        (5) If during the first four (4) years of service with the employer:
            (A) a fund member with a Class 3 excludable condition is determined to have a Class 3 impairment; and
            (B) the Class 3 impairment is attributable to an accidental

injury that is not related in any manner to the fund member's Class 3 excludable condition;
        the member is entitled to receive the benefits provided in subdivision (1) with respect to the accidental injury. For purposes of this subdivision, the local board shall make the initial determination of whether an impairment is attributable to an accidental injury. The local board shall forward the initial determination to the director of the PERF board for a final determination by the PERF board or the PERF board's designee.
    (f) If a fund member is entitled to a monthly base benefit under:
        (1)
subsection (b), (c), (d), or (e) (b)(1), (c)(1), (d)(1), or (e)(1)(A), the fund member is also entitled to a monthly amount that is no not less than ten percent (10%) and no greater not more than forty-five percent (45%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment; or
         (2) subsection (b)(2), (c)(2), (d)(2), or (e)(1)(B), the fund member is also entitled to a monthly amount that is not less than ten percent (10%) and not more than forty-five percent (45%) of the monthly salary of the rank of the member in the year of the local board's determination of impairment.
The additional monthly amount under either subdivision (1) or (2) shall be determined by the PERF medical authority based on the degree of impairment.
    (g) Benefits for a Class 1 impairment are payable until the fund member becomes fifty-two (52) years of age. Benefits for a Class 2 and a Class 3 impairment are payable:
        (1) for an impairment occurring:
             (A) before January 1, 2005, for a period equal to the years of service of the member, if the member's total disability benefit is less than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment and the member has fewer than four (4) years of service; or
             (B) after December 31, 2004, for a period equal to the years of service of the member, if the member's total disability benefit is less than thirty percent (30%) of the monthly salary of the rank of the member in the year of the local board's determination of impairment and the member has less than four (4) years of service; or
        (2) for an impairment occurring:
             (A) before January 1, 2005, until the member becomes

fifty-two (52) years of age if the member's benefit is:
                (A) (i) equal to or greater than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment; or
                (B) (ii) less than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment if the member has at least four (4) years of service; or
            (B) after December 31, 2004, until the member becomes fifty-two (52) years of age if the member's benefit is:
                (i) equal to or more than thirty percent (30%) of the monthly salary of the rank of the member in the year of the local board's determination of impairment; or
                (ii) less than thirty percent (30%) of the monthly salary of the rank of the member in the year of the local board's determination of impairment if the member has at least four (4) years of service.

    (h) Upon becoming fifty-two (52) years of age, a fund member with a Class 1 or Class 2 impairment is entitled to receive the retirement benefit payable to a fund member with:
        (1) twenty (20) years of service; or
        (2) the total years of service and salary, as of the year the member becomes fifty-two (52) years of age, that the fund member would have earned if the fund member had remained in active service until becoming fifty-two (52) years of age;
whichever is greater.
    (i) Upon becoming fifty-two (52) years of age a fund member:
         (1) with a Class 3 impairment that occurred before January 1, 2005, who is receiving or has received a Class 3 impairment benefit that is:
            (1) (A) equal to or greater than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment; or
            (2) (B) less than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment if the member has at least four (4) years of service; or
         (2) with a Class 3 impairment that occurred after December 31, 2004, who is         receiving or has received a Class 3 impairment benefit that is:
            (A) equal to or more than thirty percent (30%) of the monthly salary of the rank of the member in the year of

the local board's determination of impairment; or
            (B) less than thirty percent (30%) of the monthly salary of the rank of the member in the year of the local board's determination of impairment if the member has at least four (4) years of service;

is entitled to receive the retirement benefit payable to a fund member with twenty (20) years of service.
    (j) Notwithstanding section 12.3 of this chapter and any other provision of this section, a member who:
        (1) has had a covered impairment;
        (2) recovers and returns to active service with the department; and
        (3) within two (2) years after returning to active service has an impairment that, except for section 12.3(b)(3) of this chapter, would be a covered impairment;
is entitled to the benefit under this subsection if the impairment described in subdivision (3) results from the same condition or conditions (without an intervening circumstance) that caused the covered impairment described in subdivision (1). The member is entitled to receive the monthly disability benefit amount paid to the member at the time of the member's return to active service plus any adjustments under section 15 of this chapter that would have been applicable during the member's period of reemployment.

SOURCE: IC 36-8-8-13.8; (03)IN1884.1.27. -->     SECTION 27. IC 36-8-8-13.8 , AS ADDED BY P.L.118-2000, SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13.8. (a) This section applies to an active or retired member who dies other than in the line of duty (as defined in section 14.1 of this chapter) after August 31, 1982.
    (b) If a fund member dies before January 1, 2005, while receiving retirement or disability benefits, the following apply:
        (1) Except as otherwise provided in this subsection, each of the member's surviving children is entitled to a monthly benefit equal to twenty percent (20%) of the fund member's monthly benefit:
            (A) until the child becomes eighteen (18) years of age; or
            (B) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university;
        whichever period is longer. However, if the board finds upon the submission of satisfactory proof that a child who is at least eighteen (18) years of age is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under clause (B), the child is entitled to receive an amount each month

that is equal to the greater of thirty percent (30%) of the monthly pay of a first class patrolman or first class firefighter or fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death as long as the mental or physical incapacity of the child continues. Benefits paid for a child shall be paid to the surviving parent as long as the child resides with and is supported by the surviving parent. If the surviving parent dies, the benefits shall be paid to the legal guardian of the child.
        (2) The member's surviving spouse is entitled to a monthly benefit equal to sixty percent (60%) of the fund member's monthly benefit during the spouse's lifetime. If the spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse.
If a fund member dies while receiving retirement or disability benefits, there is no surviving eligible child or spouse, and there is proof satisfactory to the local board, subject to review in the manner specified in section 13.1(b) of this chapter, that the parent was wholly dependent on the fund member, the member's surviving parent is entitled, or both surviving parents if qualified are entitled jointly, to receive fifty percent (50%) of the fund member's monthly benefit during the parent's or parents' lifetime.
    (c) If a fund member dies after December 31, 2004, while receiving retirement or disability benefits, the following apply:
        (1) Except as otherwise provided in this subsection, each of the member's surviving children is entitled to a monthly benefit equal to twenty percent (20%) of the fund member's monthly benefit:
            (A) until the child becomes eighteen (18) years of age; or
            (B) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university;
        whichever period is longer. However, if the board finds upon the submission of satisfactory proof that a child who is at least eighteen (18) years of age is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under clause (B), the child is entitled to receive an amount each month that is equal to the greater of thirty percent (30%) of the monthly salary of the rank of the member or fifty-five percent (55%) of the monthly benefit the

deceased member was receiving or was entitled to receive on the date of the member's death as long as the mental or physical incapacity of the child continues. Benefits paid for a child shall be paid to the surviving parent as long as the child resides with and is supported by the surviving parent. If the surviving parent dies, the benefits shall be paid to the legal guardian of the child.
         (2) The member's surviving spouse is entitled to a monthly benefit equal to sixty percent (60%) of the fund member's monthly benefit during the spouse's lifetime.
If a fund member dies while receiving retirement or disability benefits, there is no surviving eligible child or spouse, and there is proof satisfactory to the local board, subject to review in the manner specified in section 13.1(b) of this chapter, that the parent was wholly dependent on the fund member, the member's surviving parent is entitled, or both surviving parents if qualified are entitled jointly, to receive fifty percent (50%) of the fund member's monthly benefit during the parent's or parents' lifetime.

     (d) Except as otherwise provided in this subsection, if a fund member dies while on active duty or while retired and not receiving benefits, the member's children and the member's spouse, or the member's parent or parents are entitled to receive a monthly benefit determined under subsection subsections (b) and (c). If the fund member did not have at least twenty (20) years of service or was not at least fifty-two (52) years of age, the benefit is computed as if the member:
        (1) did have twenty (20) years of service; and
        (2) was fifty-two (52) years of age.

SOURCE: IC 36-8-8-14.1; (03)IN1884.1.28. -->     SECTION 28. IC 36-8-8-14.1 , AS AMENDED BY P.L.185-2002, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14.1. (a) Benefits paid under this section are subject to section 2.5 of this chapter.
    (b) This section applies to an active member who dies in the line of duty after August 31, 1982.
    (c) If a fund member dies in the line of duty after August 31, 1982, the member's surviving spouse is entitled to a monthly benefit during the spouse's lifetime, equal to the benefit to which the member would have been entitled on the date of the member's death, but not less than the benefit payable to a member with twenty (20) years service at fifty-two (52) years of age. If the spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue

during the life of the surviving spouse.
    (d) If a fund member dies in the line of duty after August 31, 1982, and before January 1, 2005, each of the member's surviving children is entitled to a monthly benefit equal to twenty percent (20%) of the fund member's monthly benefit:
        (1) until the child reaches eighteen (18) years of age; or
        (2) until the child reaches twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university;
whichever period is longer. However, if the board finds upon the submission of satisfactory proof that a child who is at least eighteen (18) years of age is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under subdivision (2), the child is entitled to receive an amount each month that is equal to the greater of thirty percent (30%) of the monthly pay of a first class patrolman or first class firefighter or fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death as long as the mental or physical incapacity of the child continues. Benefits paid for a child shall be paid to the surviving parent as long as the child resides with and is supported by the surviving parent. If the surviving parent dies, the benefits shall be paid to the legal guardian of the child.
    (e) If a fund member dies in the line of duty after December 31, 2004, each of the member's surviving children is entitled to a monthly benefit equal to twenty percent (20%) of the fund member's monthly benefit:
        (1) until the child becomes eighteen (18) years of age; or
        (2) until the child becomes twenty-three (23) years of age if the child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university;
whichever period is longer. However, if the board finds upon the submission of satisfactory proof that a child who is at least eighteen (18) years of age is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under subdivision (2), the child is entitled to receive an amount each month that is equal to the greater of thirty percent (30%) of the monthly salary of the rank that the deceased member held at the time of death or fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death as long as the mental or physical incapacity of the child continues. Benefits paid for a child shall be paid to the

surviving parent as long as the child resides with and is supported by the surviving parent. If the surviving parent dies, the benefits shall be paid to the legal guardian of the child.
     (f) If there is no surviving eligible child or spouse, and there is proof satisfactory to the local board, subject to review in the manner specified in section 13.1(b) of this chapter, that the parent was wholly dependent on the fund member, the member's surviving parent is entitled, or both surviving parents if qualified are entitled jointly, to receive fifty percent (50%) of the fund member's monthly benefit during the parent's or parents' lifetime.
    (f) (g) If the fund member did not have at least twenty (20) years of service or was not at least fifty-two (52) years old, the benefit is computed as if the member:
        (1) did have twenty (20) years of service; and
        (2) was fifty-two (52) years of age.
    (g) (h) For purposes of this section, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness caused by incident, accident, or violence that results from:
        (1) any action that the member, in the member's capacity as a police officer:
            (A) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or
            (B) performs in the course of controlling or reducing crime or enforcing the criminal law; or
        (2) any action that the member, in the member's capacity as a firefighter:
            (A) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or
            (B) performs while on the scene of an emergency run (including false alarms) or on the way to or from the scene.
The term includes a death presumed incurred in the line of duty under IC 5-10-13.

SOURCE: IC 36-8-8-18; (03)IN1884.1.29. -->     SECTION 29. IC 36-8-8-18 , AS AMENDED BY P.L.61-2002, SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 18. (a) Except as provided in subsection (b), if a unit becomes a participant in the 1977 fund, credit for prior service by police officers (including prior service as a full-time, fully paid town marshal or full-time, fully paid deputy town marshal by a police officer employed by a metropolitan board of police commissioners) or by firefighters before the date of participation may be given by the PERF board only if:
        (1) the unit contributes to the 1977 fund the amount necessary to

amortize prior service liability over a period of not more than forty (40) years, the amount and period to be determined by the PERF board; and
        (2) the police officers or firefighters pay, either in a lump sum or in a series of payments determined by the PERF board, the amount that they would have contributed if they had been members of the 1977 fund during their prior service.
If the requirements of subdivisions (1) and (2) are not met, a fund member is entitled to credit only for years of service after the date of participation.
    (b) If a unit becomes a participant in the 1977 fund under section 3(c) of this chapter, or if a firefighter becomes a member of the 1977 fund under section 7(g) of this chapter before January 1, 2005, credit for prior service before the date of participation or membership shall be given by the PERF board as follows:
        (1) For a member who will accrue twenty (20) years of service credit in the 1977 fund by the time the member reaches the earliest retirement age under the fund at the time of the member's date of participation in the 1977 fund, the member will be given credit in the 1977 fund for one-third (1/3) of the member's years of participation in PERF as a police officer, a firefighter, or an emergency medical technician.
        (2) For a member who will not accrue twenty (20) years of service credit in the 1977 fund by the time the member reaches the earliest retirement age under the fund at the time of the member's date of participation in the 1977 fund, such prior service shall be given only if:
            (A) The unit contributes to the 1977 fund the amount necessary to fund prior service liability amortized over a period of not more than ten (10) years. The amount of contributions must be based on the actual salary earned by a first class firefighter at the time the unit becomes a participant in the 1977 fund, or the firefighter becomes a member of the 1977 fund, or if no such salary designation exists, the actual salary earned by the firefighter. However, credit for prior service is limited to the amount necessary to allow the firefighter to accrue twenty (20) years of service credit in the 1977 fund by the time the firefighter reaches the earliest retirement age under the 1977 fund at the time of the member's date of participation in the 1977 fund. The limit on credit for prior service does not apply if the firefighter was a member of the 1937 fund or 1977 fund whose participation was

terminated due to the creation of a new fire protection district under IC 36-8-11-5 and who subsequently became a member of the 1977 fund. A firefighter who was a member of or reentered the 1937 fund or 1977 fund whose participation was terminated due to the creation of a new fire protection district under IC 36-8-11-5 is entitled to full credit for prior service in an amount equal to the firefighter's years of service before becoming a member of or reentering the 1977 fund. Service may only be credited for time as a full-time, fully paid firefighter or as an emergency medical technician under section 7(g) of this chapter.
            (B) The amount the firefighter would have contributed if the firefighter had been a member of the 1977 fund during the firefighter's prior service must be fully paid and must be based on the firefighter's actual salary earned during that period before service can be credited under this section.
            (C) Any amortization schedule for contributions paid under clause (A) and contributions to be paid under clause (B) must include interest at a rate determined by the PERF board.
        (3) If, at the time a unit entered the 1977 fund, the unit contributed the amount required by subdivision (2) so that a fund member received the maximum prior service credit allowed by subdivision (2) and, at a later date, the earliest retirement age was lowered, the unit may contribute to the 1977 fund on the fund member's behalf an additional amount that is determined in the same manner as under subdivision (2) with respect to the additional prior service, if any, available as a result of the lower retirement age. If the unit pays the additional amount described in this subdivision in accordance with the requirements of subdivision (2), the fund member shall receive the additional service credit necessary for the fund member to retire at the lower earliest retirement age.
    (c) If a unit becomes a participant in the 1977 fund under section 3(c) of this chapter, or if a firefighter becomes a member of the 1977 fund under section 7(g) of this chapter after December 31, 2004, credit for prior service before the date of participation or membership shall be given by the PERF board as follows:
        (1) For a member who will accrue twenty (20) years of service credit in the 1977 fund by the time the member reaches the earliest retirement age under the fund at the time of the member's date of participation in the 1977 fund, the member will be given credit in the 1977 fund for one-third (1/3) of the

member's years of participation in PERF as a police officer, a firefighter, or an emergency medical technician.
        (2) For a member who will not accrue twenty (20) years of service credit in the 1977 fund by the time the member reaches the earliest retirement age under the fund at the time of the member's date of participation in the 1977 fund, credit for such prior service shall be given only if:

             (A) The unit contributes to the 1977 fund the amount necessary to fund prior service liability amortized over a period of not more than ten (10) years. The amount of contributions must be based on the actual salary of the rank of the member at the time the unit becomes a participant in the 1977 fund, or the firefighter becomes a member of the 1977 fund. However, credit for prior service is limited to the amount necessary to allow the firefighter to accrue twenty (20) years of service credit in the 1977 fund by the time the firefighter reaches the earliest retirement age under the 1977 fund at the time of the member's date of participation in the 1977 fund. The limit on credit for prior service does not apply if the firefighter was a member of the 1937 fund or 1977 fund whose participation was terminated due to the creation of a new fire protection district under IC 36-8-11-5 and who subsequently became a member of the 1977 fund. A firefighter who was a member of or reentered the 1937 fund or 1977 fund whose participation was terminated due to the creation of a new fire protection district under IC 36-8-11-5 is entitled to full credit for prior service in an amount equal to the firefighter's years of service before becoming a member of or reentering the 1977 fund. Service may only be credited for time as a full-time, fully paid firefighter or as an emergency medical technician under section 7(g) of this chapter.
            (B) The amount the firefighter would have contributed if the firefighter had been a member of the 1977 fund during the firefighter's prior service must be fully paid and must be based on the firefighter's actual salary earned during that period before service can be credited under this section.
            (C) Any amortization schedule for contributions paid under clause (A) and contributions to be paid under clause (B) must include interest at a rate determined by the PERF

board.
        (3) If, at the time a unit entered the 1977 fund, the unit contributed the amount required by subdivision (2) so that a fund member received the maximum prior service credit allowed by subdivision (2) and, at a later date, the earliest retirement age was lowered, the unit may contribute to the 1977 fund on the fund member's behalf an additional amount that is determined in the same manner as under subdivision (2) with respect to the additional prior service, if any, available as a result of the lower retirement age. If the unit pays the additional amount described in this subdivision in accordance with the requirements of subdivision (2), the fund member shall receive the additional service credit necessary for the fund member to retire at the lower earliest retirement age.

     (d) This subsection applies to a unit that:
        (1) becomes a participant in the 1977 fund under section 3(c) of this chapter; and
        (2) is a fire protection district created under IC 36-8-11 that includes a township or a municipality that had a 1937 fund.
A firefighter who continues uninterrupted service with a unit covered by this subsection and who participated in the township or municipality 1937 fund is entitled to receive service credit for such service in the 1977 fund. However, credit for such service is limited to the amount accrued by the firefighter in the 1937 fund or the amount necessary to allow the firefighter to accrue twenty (20) years of service credit in the 1977 fund by the time the firefighter becomes fifty-five (55) years of age, whichever is less.
    (d) (e) The unit shall contribute into the 1977 fund the amount necessary to fund the amount of past service determined in accordance with subsection (c), (d), amortized over a period not to exceed ten (10) years with interest at a rate determined by the PERF board.
    (e) (f) If the township or municipality has accumulated money in its 1937 fund, any amount accumulated that exceeds the present value of all projected future benefits from the 1937 plan shall be paid by the township or municipality to the unit for the sole purpose of making the contributions determined in subsection (d). (e).
    (f) (g) To the extent permitted by the Internal Revenue Code and the applicable regulations, the 1977 fund may accept, on behalf of a fund member who is purchasing permissive service credit under this chapter, a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a)

of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) An eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (g) (h) To the extent permitted by the Internal Revenue Code and the applicable regulations, the 1977 fund may accept, on behalf of a fund member who is purchasing permissive service credit under this chapter, a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

SOURCE: IC 36-8-8.5-7; (03)IN1884.1.30. -->     SECTION 30. IC 36-8-8.5-7 , AS ADDED BY P.L.62-2002, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. As used in this chapter, "DROP frozen benefit" means a member's monthly retirement benefit calculated under the provisions of the applicable fund and based on:
        (1) the salary of:
             (A) a first class officer or firefighter that is in effect on the member's DROP entry date, if the member's DROP entry date is before January 1, 2005; or
            (B) the rank of the member on the member's DROP entry date, if the member's DROP entry date is after December 31, 2004;
and
        
(2) the member's years of service accrued on the member's DROP entry date.
SOURCE: IC 36-8-8.5-13; (03)IN1884.1.31. -->     SECTION 31. IC 36-8-8.5-13 , AS ADDED BY P.L.62-2002, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13. (a) A cost of living adjustment to the monthly benefit of a member of the 1925 fund, 1937 fund, or 1953 fund who retires before January 1, 2005, is determined in STEP FOUR of the following formula:
        STEP ONE: Calculate a percentage by dividing:
            (A) the amount of any increase in the salary of a first class officer or firefighter, whichever is applicable; by
            (B) the prior year's salary of a first class officer or firefighter, whichever is applicable.
        STEP TWO: Add:
            (A) the member's DROP frozen benefit; and
            (B) the amount of any prior cost of living adjustments calculated under this section.
        STEP THREE: Multiply the percentage determined under STEP ONE by the sum determined under STEP TWO.
        STEP FOUR: Add the product determined under STEP THREE to the sum determined under STEP TWO.
    (b) A cost of living adjustment to the monthly benefit of a member of the 1925 fund, 1937 fund, or 1953 fund who retires after December 31, 2004, is determined in STEP FOUR of the following formula:
        STEP ONE: Calculate a percentage by dividing:
            (A) the amount of any increase in the salary of the rank of the member; by
            (B) the prior year's salary of the rank of the member.
        STEP TWO: Add:
            (A) the member's DROP frozen benefit; and
            (B) the amount of any prior cost of living adjustments calculated under this section.
        STEP THREE: Multiply the percentage determined under STEP ONE by the sum determined under STEP TWO.
        STEP FOUR: Add the product determined under STEP THREE to the sum determined under STEP TWO.

     (c) A cost of living adjustment to the monthly benefit of a member of the 1977 fund is determined under the provisions of IC 36-8-8 , as applied after the member's DROP retirement date.
SOURCE: ; (03)IN1884.1.32. -->     SECTION 32. [EFFECTIVE JULY 1, 2003] IC 33-19-7-7 , as amended by this act, applies to county budget years beginning after December 31, 2003.