Introduced Version




Citations Affected: IC 36-1-8-5.1.

Synopsis: Local rainy day funds. Reconciles two different versions of the statute allowing political subdivisions to establish rainy day funds.

Effective: Upon passage.

Gard, Kenley

    January 6, 2004, read first time and referred to Committee on Governmental Affairs and Interstate Cooperation.


Second Regular Session 113th General Assembly (2004)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2003 Regular Session of the General Assembly.


    A BILL FOR AN ACT to amend the Indiana Code concerning local government.

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

    SECTION 1. IC 36-1-8-5.1, AS AMENDED BY P.L.267-2003, SECTION 15, AND P.L.173-2003, SECTION 19, IS AMENDED AND CORRECTED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.1. (a) A political subdivision may establish a rainy day fund to receive transfers of unused and unencumbered funds under: (1) section 5 of this chapter; (2) IC 6-3.5-1.1-21.1; (3) IC 6-3.5-6-17.3; and (4) IC 6-3.5-7-17.3. by the adoption of:
        (1) an ordinance, in the case of a county, city, or town; or
        (2) a resolution, in the case of any other political subdivision.

    (b) An ordinance or a resolution adopted under this section must specify the following:
        (1) The purposes of the rainy day fund.
        (2) The sources of funding for the rainy day fund,
which may include the following:
             (A) Unused and unencumbered funds under:
                (i) section 5 of this chapter;
                (ii) IC 6-3.5-1.1-21.1;

                (iii) IC 6-3.5-6-17.3; or
                (iv) IC 6-3.5-7-17.3.
            (B) Any other funding source:
                (i) specified in the ordinance or resolution adopted under this section; and
                (ii) not otherwise prohibited by law.

    (b) (c) The rainy day fund is subject to the same appropriation process as other funds that receive tax money. Before making an appropriation from the rainy day fund, the fiscal body shall make a finding that the proposed use of the rainy day fund is consistent with the intent of the fund.
    (c) (d) In any fiscal year, a political subdivision may transfer under section 5 of this chapter not more than ten percent (10%) of the political subdivision's total annual budget for that fiscal year, adopted under IC 6-1.1-17, to the rainy day fund.
    (d) (e) A political subdivision may use only the funding sources specified in subsection (b)(2)(A) or in the ordinance or resolution establishing the rainy day fund. unless The political subdivision adopts may adopt a subsequent ordinance or resolution authorizing the use of another funding source.
    (f) The department of local government finance may not reduce the actual or maximum permissible levy of a political subdivision as a result of a balance in the rainy day fund of the political subdivision.
    SECTION 2. An emergency is declared for this act.