February 11, 2005





SENATE BILL No. 259

_____


DIGEST OF SB 259 (Updated February 9, 2005 6:09 pm - DI 87)



Citations Affected: IC 4-1.5; IC 4-4; IC 4-13.5; IC 4-22; IC 4-23; IC 5-1; IC 5-1.5; IC 5-10.3; IC 5-13; IC 8-9.5; IC 10-15; IC 14-12; IC 14-13; IC 14-14; IC 15-1.5; IC 20-12; IC 21-6.1; IC 23-6; IC 27-1; noncode.

Synopsis: Rulemaking by instrumentalities of the state. Specifies that an instrumentality of state government (including a body corporate and politic or other corporation exercising essential government functions) is an agency for purposes of the rulemaking procedures set forth in IC 4-22-2. Prohibits certain instrumentalities from adopting rules without complying with IC 4-22-2. Authorizes instrumentalities to adopt rules necessary or appropriate to perform their duties and exercise their powers. Requires instrumentalities of state government to submit rules: (1) in effect before July 1, 2005; and (2) adopted at or after a public meeting of the instrumentality, but not in compliance with IC 4-22-2; to the publisher of the Indiana Register and the Indiana Administrative Code for assignment of a document control number. Requires an instrumentality to submit the rule to the secretary of state for filing after the assignment of the document control number. Requires the secretary of state to submit copies of a rule accepted for filing to the attorney general. Allows, rather than requires, the attorney general to review the rule for legality and to disapprove a rule for specified reasons. Provides that if the attorney general does not issue a notice of disapproval before October 2, 2006, the rule: (1) is considered approved; and (2) must be published in the Indiana Register and the Indiana Administrative Code. (The introduced version of this bill was prepared by the code revision commission.)

Effective: Upon passage; July 1, 2005.





Landske




    January 6, 2005, read first time and referred to Committee on Governmental Affairs and Interstate Cooperation.
    February 10, 2005, amended, reported favorably _ Do Pass.






February 11, 2005

First Regular Session 114th General Assembly (2005)


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 2004 Regular Session of the General Assembly.

SENATE BILL No. 259



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

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

SOURCE: IC 4-1.5-5-6; (05)SB0259.1.1. -->     SECTION 1. IC 4-1.5-5-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. The corporation may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 4-4-11-15; (05)SB0259.1.2. -->     SECTION 2. IC 4-4-11-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15. (a) The authority is granted all powers necessary or appropriate to carry out and effectuate its public and corporate purposes under this chapter, IC 4-4-21, and IC 15-7-5, including but not limited to the following:
        (1) Have perpetual succession as a body politic and corporate and an independent instrumentality exercising essential public functions.
        (2) Without complying with IC 4-22-2, Adopt, amend, and repeal bylaws rules, and regulations that are not inconsistent with this chapter, IC 4-4-21, and IC 15-7-5, and that are necessary or convenient to regulate its affairs, and to carry into effect the

powers, duties, and purposes of the authority, and to conduct its business.
        (3) Sue and be sued in its own name.
        (4) Have an official seal and alter it at will.
        (5) Maintain an office or offices at a place or places within the state as it may designate.
        (6) Make and execute contracts and all other instruments necessary or convenient for the performance of its duties and the exercise of its powers and functions under this chapter, IC 4-4-21, and IC 15-7-5.
        (7) Employ architects, engineers, attorneys, inspectors, accountants, agriculture experts, silviculture experts, aquaculture experts, and financial experts, and such other advisors, consultants, and agents as may be necessary in its judgment and to fix their compensation.
        (8) Procure insurance against any loss in connection with its property and other assets, including loans and loan notes in amounts and from insurers as it may consider advisable.
        (9) Borrow money, make guaranties, issue bonds, and otherwise incur indebtedness for any of the authority's purposes, and issue debentures, notes, or other evidences of indebtedness, whether secured or unsecured, to any person, as provided by this chapter, IC 4-4-21, and IC 15-7-5.
        (10) Procure insurance or guaranties from any public or private entities, including any department, agency, or instrumentality of the United States, for payment of any bonds issued by the authority or for reinsurance on amounts paid from the industrial development project guaranty fund, including the power to pay premiums on any insurance or reinsurance.
        (11) Purchase, receive, take by grant, gift, devise, bequest, or otherwise, and accept, from any source, aid or contributions of money, property, labor, or other things of value to be held, used, and applied to carry out the purposes of this chapter, IC 4-4-21, and IC 15-7-5, subject to the conditions upon which the grants or contributions are made, including but not limited to gifts or grants from any department, agency, or instrumentality of the United States, and lease or otherwise acquire, own, hold, improve, employ, use, and otherwise deal in and with real or personal property or any interest in real or personal property, wherever situated, for any purpose consistent with this chapter, IC 4-4-21, or IC 15-7-5.
        (12) Enter into agreements with any department, agency, or

instrumentality of the United States or this state and with lenders and enter into loan agreements, sales contracts, and leases with contracting parties, including borrowers, lenders, developers, or users, for the purpose of planning, regulating, and providing for the financing and refinancing of any agricultural enterprise (as defined in IC 15-7-4.9-2), rural development project (as defined in IC 15-7-4.9-19.5), industrial development project, or international exports, and distribute data and information concerning the encouragement and improvement of agricultural enterprises and agricultural employment, rural development projects, industrial development projects, international exports, and other types of employment in the state undertaken with the assistance of the authority under this chapter.
        (13) Enter into contracts or agreements with lenders and lessors for the servicing and processing of loans and leases pursuant to this chapter, IC 4-4-21, and IC 15-7-5.
        (14) Provide technical assistance to local public bodies and to profit and nonprofit entities in the development or operation of agricultural enterprises, rural development projects, and industrial development projects.
        (15) To the extent permitted under its contract with the holders of the bonds of the authority, consent to any modification with respect to the rate of interest, time, and payment of any installment of principal or interest, or any other term of any contract, loan, loan note, loan note commitment, contract, lease, or agreement of any kind to which the authority is a party.
        (16) To the extent permitted under its contract with the holders of bonds of the authority, enter into contracts with any lender containing provisions enabling it to reduce the rental or carrying charges to persons unable to pay the regular schedule of charges when, by reason of other income or payment by any department, agency, or instrumentality of the United States of America or of this state, the reduction can be made without jeopardizing the economic stability of the agricultural enterprise, rural development project, or industrial development project being financed.
        (17) Invest any funds not needed for immediate disbursement, including any funds held in reserve, in direct and general obligations of or obligations fully and unconditionally guaranteed by the United States, obligations issued by agencies of the United States, obligations of this state, or any obligations or securities which may from time to time be legally purchased by

governmental subdivisions of this state pursuant to IC 5-13, or any obligations or securities which are permitted investments for bond proceeds or any construction, debt service, or reserve funds secured under the trust indenture or resolution pursuant to which bonds are issued.
        (18) Collect fees and charges, as the authority determines to be reasonable, in connection with its loans, guarantees, advances, insurance, commitments, and servicing.
        (19) Cooperate and exchange services, personnel, and information with any federal, state, or local government agency, or instrumentality of the United States or this state.
        (20) Sell, at public or private sale, with or without public bidding, any loan or other obligation held by the authority.
        (21) Enter into agreements concerning, and acquire, hold, and dispose by any lawful means, land or interests in land, building improvements, structures, personal property, franchises, patents, accounts receivable, loans, assignments, guarantees, and insurance needed for the purposes of this chapter, IC 4-4-21, or IC 15-7-5.
        (22) Take assignments of accounts receivable, loans, guarantees, insurance, notes, mortgages, security agreements securing notes, and other forms of security, attach, seize, or take title by foreclosure or conveyance to any industrial development project when a guaranteed loan thereon is clearly in default and when in the opinion of the authority such acquisition is necessary to safeguard the industrial development project guaranty fund, and sell, or on a temporary basis, lease, or rent such industrial development project for any use.
        (23) Expend money, as the authority considers appropriate, from the industrial development project guaranty fund created by section 16 of this chapter.
        (24) Purchase, lease as lessee, construct, remodel, rebuild, enlarge, or substantially improve industrial development projects, including land, machinery, equipment, or any combination thereof.
        (25) Lease industrial development projects to users or developers, with or without an option to purchase.
        (26) Sell industrial development projects to users or developers, for consideration to be paid in installments or otherwise.
        (27) Make direct loans from the proceeds of the bonds to users or developers for:
            (A) the cost of acquisition, construction, or installation of

industrial development projects, including land, machinery, equipment, or any combination thereof; or
            (B) eligible expenditures for an educational facility project described in IC 4-4-10.9-6.2(a)(2);
        with the loans to be secured by the pledge of one (1) or more bonds, notes, warrants, or other secured or unsecured debt obligations of the users or developers.
        (28) Lend or deposit the proceeds of bonds to or with a lender for the purpose of furnishing funds to such lender to be used for making a loan to a developer or user for the financing of industrial development projects under this chapter.
        (29) Enter into agreements with users or developers to allow the users or developers, directly or as agents for the authority, to wholly or partially construct industrial development projects to be leased from or to be acquired by the authority.
        (30) Establish reserves from the proceeds of the sale of bonds, other funds, or both, in the amount determined to be necessary by the authority to secure the payment of the principal and interest on the bonds.
        (31) Adopt rules governing its activities authorized under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers under this chapter, IC 4-4-21, and IC 15-7-5.
        (32) Use the proceeds of bonds to make guaranteed participating loans.
        (33) Purchase, discount, sell, and negotiate, with or without guaranty, notes and other evidences of indebtedness.
        (34) Sell and guarantee securities.
        (35) Make guaranteed participating loans under IC 4-4-21-26.
        (36) Procure insurance to guarantee, insure, coinsure, and reinsure against political and commercial risk of loss, and any other insurance the authority considers necessary, including insurance to secure the payment of principal and interest on notes or other obligations of the authority.
        (37) Provide performance bond guarantees to support eligible export loan transactions, subject to the terms of this chapter or IC 4-4-21.
        (38) Provide financial counseling services to Indiana exporters.
        (39) Accept gifts, grants, or loans from, and enter into contracts or other transactions with, any federal or state agency, municipality, private organization, or other source.
        (40) Sell, convey, lease, exchange, transfer, or otherwise dispose of property or any interest in property, wherever the property is

located.
        (41) Cooperate with other public and private organizations to promote export trade activities in Indiana.
        (42) Make guarantees and administer the agricultural loan and rural development project guarantee fund established by IC 15-7-5.
        (43) Take assignments of notes and mortgages and security agreements securing notes and other forms of security, and attach, seize, or take title by foreclosure or conveyance to any agricultural enterprise or rural development project when a guaranteed loan to the enterprise or rural development project is clearly in default and when in the opinion of the authority the acquisition is necessary to safeguard the agricultural loan and rural development project guarantee fund, and sell, or on a temporary basis, lease or rent the agricultural enterprise or rural development project for any use.
        (44) Expend money, as the authority considers appropriate, from the agricultural loan and rural development project guarantee fund created by IC 15-7-5-19.5.
        (45) Reimburse from bond proceeds expenditures for industrial development projects under this chapter.
        (46) Do any act necessary or convenient to the exercise of the powers granted by this chapter, IC 4-4-21, or IC 15-7-5, or reasonably implied from those statutes, including but not limited to compliance with requirements of federal law imposed from time to time for the issuance of bonds.
    (b) The authority's powers under this chapter shall be interpreted broadly to effectuate the purposes of this chapter and may not be construed as a limitation of powers.
    (c) This chapter does not authorize the financing of industrial development projects for a developer unless any written agreement that may exist between the developer and the user at the time of the bond resolution is fully disclosed to and approved by the authority.

SOURCE: IC 4-4-11-39; (05)SB0259.1.3. -->     SECTION 3. IC 4-4-11-39 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 39. The issuance of bonds and the promulgation of rules under this chapter, IC 4-4-21, or IC 15-7-5 need not comply with the requirements of any other state laws, applicable thereto. No proceedings, notice, or approval shall be required for the issuance of any bonds or any instrument, or the security therefor, except as provided in this chapter. All agricultural enterprises, rural development projects, and industrial development projects for which funds are advanced, loaned, or otherwise provided

by the authority under this chapter or IC 15-7-5 must be in compliance with any land use, zoning, subdivision, and other laws of this state applicable to the land upon which the agricultural enterprise, rural development project, or industrial development project is located or is to be constructed, but a failure to comply with these laws does not invalidate any bonds issued to finance an agricultural enterprise, rural development project, or industrial development project.

SOURCE: IC 4-13.5-1-3.2; (05)SB0259.1.4. -->     SECTION 4. IC 4-13.5-1-3.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.2. The commission may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 4-22-2-3; (05)SB0259.1.5. -->     SECTION 5. IC 4-22-2-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) "Agency" means any:
         (1) officer, board, commission, department, division, bureau, committee, or other governmental entity exercising any of the executive (including the administrative) powers of state government; or
        (2) instrumentality of state government.

The term does not include the judicial or legislative departments of state government or a political subdivision as defined in IC 36-1-2-13.
    (b) "Rule" means the whole or any part of an agency statement of general applicability that:
        (1) has or is designed to have the effect of law; and
        (2) implements, interprets, or prescribes:
            (A) law or policy; or
            (B) the organization, procedure, or practice requirements of an agency.
    (c) "Rulemaking action" means the process of formulating or adopting a rule. The term does not include an agency action.
    (d) "Agency action" has the meaning set forth in IC 4-21.5-1-4.
    (e) "Person" means an individual, corporation, limited liability company, partnership, unincorporated association, or governmental entity.
    (f) "Publisher" refers to the publisher of the Indiana Register and Indiana Administrative Code, which is the legislative council, or the legislative services agency operating under the direction of the council.
     (g) "Instrumentality" includes a body corporate and politic or another corporation authorized by law or another agency to carry out an essential public function.
    (g) (h) The definitions in this section apply throughout this article.
SOURCE: IC 4-22-2-13; (05)SB0259.1.6. -->     SECTION 6. IC 4-22-2-13 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) Subject to subsections (b), (c), and (d), this chapter applies to:
         (1) an agency with rulemaking authority that is:
            (A) expressly granted by statute;
            (B) implied through general statutory authority to implement a particular statutory program or provision; or
            (C) derived or implied from a ruling of a court having jurisdiction over the instrumentality; and
        (2)
the addition, amendment, or repeal of a rule in every rulemaking action.
    (b) This chapter does not apply to the following agencies:
        (1) Any military officer or board.
        (2) Any state educational institution (as defined in IC 20-12-0.5-1).
    (c) This chapter does not apply to a rulemaking action that results in any of the following rules:
        (1) A resolution or directive of any agency that relates solely to internal policy, internal agency organization, or internal procedure and does not have the effect of law.
        (2) A restriction or traffic control determination of a purely local nature that:
            (A) is ordered by the commissioner of the Indiana department of transportation;
            (B) is adopted under IC 9-20-1-3(d), IC 9-21-4-7, or IC 9-20-7; and
            (C) applies only to one (1) or more particularly described intersections, highway portions, bridge causeways, or viaduct areas.
        (3) A rule adopted by the secretary of state under IC 26-1-9.1-526.
        (4) An executive order or proclamation issued by the governor.
    (d) Except as specifically set forth in IC 13-14-9, sections 24, 26, 27, and 29 of this chapter do not apply to rulemaking actions under IC 13-14-9.

SOURCE: IC 4-22-2-37.1; (05)SB0259.1.7. -->     SECTION 7. IC 4-22-2-37.1, AS AMENDED BY P.L.1-2004, SECTION 1, AND AS AMENDED BY P.L.23-2004, SECTION 1, IS CORRECTED AND AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 37.1. (a) This section applies to a rulemaking action resulting in any of the following rules:
        (1) An order adopted by the commissioner of the Indiana department of transportation under IC 9-20-1-3(d) or IC 9-21-4-7(a) and designated by the commissioner as an emergency rule.
        (2) An action taken by the director of the department of natural resources under IC 14-22-2-6(d) or IC 14-22-6-13.
        (3) An emergency temporary standard adopted by the occupational safety standards commission under IC 22-8-1.1-16.1.
        (4) An emergency rule adopted by the solid waste management board under IC 13-22-2-3 and classifying a waste as hazardous.
        (5) A rule, other than a rule described in subdivision (6), adopted by the department of financial institutions under IC 24-4.5-6-107 and declared necessary to meet an emergency.
        (6) A rule required under IC 24-4.5-1-106 that is adopted by the department of financial institutions and declared necessary to meet an emergency under IC 24-4.5-6-107.
        (7) A rule adopted by the Indiana utility regulatory commission to address an emergency under IC 8-1-2-113.
        (8) An emergency rule jointly adopted by the water pollution control board and the budget agency under IC 13-18-13-18.
        (9) An emergency rule adopted by the state lottery commission under IC 4-30-3-9.
        (10) A rule adopted under IC 16-19-3-5 that the executive board of the state department of health declares is necessary to meet an emergency.
        (11) An emergency rule adopted by the Indiana transportation finance authority under IC 8-21-12.
        (12) An emergency rule adopted by the insurance commissioner under IC 27-1-23-7.
        (13) An emergency rule adopted by the Indiana horse racing commission under IC 4-31-3-9.
        (14) An emergency rule adopted by the air pollution control board, the solid waste management board, or the water pollution control board under IC 13-15-4-10(4) or to comply with a deadline required by federal law, provided:
            (A) the variance procedures are included in the rules; and
            (B) permits or licenses granted during the period the emergency rule is in effect are reviewed after the emergency rule expires.
        (15) An emergency rule adopted by the Indiana election commission under IC 3-6-4.1-14.
        (16) An emergency rule adopted by the department of natural resources under IC 14-10-2-5.
        (17) An emergency rule adopted by the Indiana gaming commission under IC 4-33-4-2, IC 4-33-4-3, or IC 4-33-4-14.
        (18) An emergency rule adopted by the alcohol and tobacco commission under IC 7.1-3-17.5, IC 7.1-3-17.7, or IC 7.1-3-20-24.4.
        (19) An emergency rule adopted by the department of financial institutions under IC 28-15-11.
        (20) An emergency rule adopted by the office of the secretary of family and social services under IC 12-8-1-12.
        (21) An emergency rule adopted by the office of the children's health insurance program under IC 12-17.6-2-11.
        (22) An emergency rule adopted by the office of Medicaid policy and planning under IC 12-15-41-15.
        (23) An emergency rule adopted by the Indiana state board of animal health under IC 15-2.1-18-21.
        (24) An emergency rule adopted by the board of directors of the Indiana education savings authority under IC 21-9-4-7.
        (25) An emergency rule adopted by the Indiana board of tax review under IC 6-1.1-4-34.
        (26) An emergency rule adopted by the department of local government finance under IC 6-1.1-4-33.
        (27) An emergency rule adopted by the boiler and pressure vessel rules board under IC 22-13-2-8(c).
        (28) An emergency rule adopted by the Indiana board of tax review under IC 6-1.1-4-37(l) or an emergency rule adopted by the department of local government finance under IC 6-1.1-4-36(j) or IC 6-1.1-22.5-20.
         (29) An emergency rule that:
            (A) is adopted by an instrumentality of state government; and
            (B) is not described in subdivision (9), (11), (13), (17), or (24).

    (b) The following do not apply to rules described in subsection (a):
        (1) Sections 24 through 36 of this chapter.
        (2) IC 13-14-9.
    (c) After a rule described in subsection (a) has been adopted by the agency, the agency shall submit the rule to the publisher for the assignment of a document control number. The agency shall submit the rule in the form required by section 20 of this chapter and with the documents required by section 21 of this chapter. The publisher shall determine the number of copies of the rule and other documents to be submitted under this subsection.
    (d) After the document control number has been assigned, the agency shall submit the rule to the secretary of state for filing. The

agency shall submit the rule in the form required by section 20 of this chapter and with the documents required by section 21 of this chapter. The secretary of state shall determine the number of copies of the rule and other documents to be submitted under this subsection.
    (e) Subject to section 39 of this chapter, the secretary of state shall:
        (1) accept the rule for filing; and
        (2) file stamp and indicate the date and time that the rule is accepted on every duplicate original copy submitted.
    (f) A rule described in subsection (a) takes effect on the latest of the following dates:
        (1) The effective date of the statute delegating authority to the agency to adopt the rule.
        (2) The date and time that the rule is accepted for filing under subsection (e).
        (3) The effective date stated by the adopting agency in the rule.
        (4) The date of compliance with every requirement established by law as a prerequisite to the adoption or effectiveness of the rule.
    (g) Subject to subsection (h), IC 14-10-2-5, IC 14-22-2-6, IC 22-8-1.1-16.1, and IC 22-13-2-8(c), and except as provided in subsection (j), a rule adopted under this section expires not later than ninety (90) days after the rule is accepted for filing under subsection (e). Except for a rule adopted under subsection (a)(14), (a)(25), (a)(26), or (a)(28), the rule may be extended by adopting another rule under this section, but only for one (1) extension period. A rule adopted under subsection (a)(14) may be extended for two (2) extension periods. Subject to subsection (j), a rule adopted under subsection (a)(25), (a)(26), or (a)(28) may be extended for an unlimited number of extension periods. Except for a rule adopted under subsection (a)(14), for a rule adopted under this section to be effective after one (1) extension period, the rule must be adopted under:
        (1) sections 24 through 36 of this chapter; or
        (2) IC 13-14-9;
as applicable.
    (h) A rule described in subsection (a)(6), (a)(9), or (a)(13) expires on the earlier of the following dates:
        (1) The expiration date stated by the adopting agency in the rule.
        (2) The date that the rule is amended or repealed by a later rule adopted under sections 24 through 36 of this chapter or this section.
    (i) This section may not be used to readopt a rule under IC 4-22-2.5.
    (j) A rule described in subsection (a)(25) or (a)(26) expires not later than January 1, 2006.


SOURCE: IC 4-22-2.5-2; (05)SB0259.1.8. -->     SECTION 8. IC 4-22-2.5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Except as provided in subsection (b) or (c), or in section 1.1 of this chapter, an administrative rule adopted under IC 4-22-2 expires January 1 of the seventh year after the year in which the rule takes effect, unless the rule contains an earlier expiration date. The expiration date of a rule under this section is extended each time that a rule amending an unexpired rule takes effect. The rule, as amended, expires on January 1 of the seventh year after the year in which the amendment takes effect.
    (b) An administrative rule that:
        (1) was adopted under IC 4-22-2;
        (2) is in force on December 31, 1995; and
        (3) is not amended by a rule that takes effect after December 31, 1995, and before January 1, 2002;
expires not later than January 1, 2002.
     (c) A rule that:
        (1) was adopted by an instrumentality of state government before July 1, 2005, without complying with IC 4-22-2;
        (2) is in force on June 30, 2005;
        (3) is not amended by a rule that takes effect after June 30, 2005, and before July 1, 2012; and
        (4) is published in the Indiana Register and the Indiana Administrative Code before July 1, 2007, under the authority of SEA 259-2005 or otherwise;
expires not later than July 1, 2012.

SOURCE: IC 4-23-5.5-9; (05)SB0259.1.9. -->     SECTION 9. IC 4-23-5.5-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. The board may:
        (1) on behalf of the state, receive and accept grants, gifts, and contributions from public agencies, including the federal government, and from private agencies and private sources, including the Indiana business modernization and technology corporation, for the purpose of researching and developing energy resources within the state, and may administer such, including contracting with other public and private organizations, to carry out the purposes for which such grants, gifts, and contributions were made;
        (2) establish application forms and procedures for programs consistent with this chapter;
        (3) accept applications from private and public sources for funding of programs consistent with this chapter;
        (4) provide funding for studies, research projects, and other activities required to assess the nature and extent of recycling

markets in Indiana and the nature and extent of energy resources to meet the needs of the state, including but not limited to coal and other fossil fuels, alcohol fuels produced from agricultural and forest products and resources, renewable, and other energy resources;
        (5) deposit funds not currently needed to meet the obligations of the board with the treasurer of state to the credit of the fund, or invest in obligations as provided by IC 5-13-10.5; and
        (6) participate in or sponsor programs, conferences, or seminars aimed at assisting the state in promoting recycling market development and the effective use of all sources of energy in Indiana; and
        (7) adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.

SOURCE: IC 5-1-16-13; (05)SB0259.1.10. -->     SECTION 10. IC 5-1-16-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 13. (a) The authority has all powers necessary to carry out and effectuate its public and corporate purposes, including but not limited to the following:
        (1) To have perpetual succession as a public body politic and corporate and an independent public instrumentality exercising essential public functions.
        (2) To adopt, amend, and repeal bylaws and rules consistent with this chapter to regulate its affairs, to carry into effect the powers and purposes of the authority, and to conduct its business. which rules and bylaws may be adopted by the authority without complying with IC 4-22-2.
        (3) To sue and be sued in its own name.
        (4) To have an official seal.
        (5) To maintain an office in Indiana.
        (6) To make and execute contracts and all other instruments necessary or convenient for the performance of its duties and the exercise of its powers and functions under this chapter.
        (7) To employ architects, engineers, independent legal counsel, inspectors, accountants, and health care and financial experts, and such other advisors, consultants, and agents as may be necessary in its judgment without the approval of or consent by any other state official, and to fix their compensation.
        (8) To procure insurance against any loss in connection with its property and other assets, in such amounts and from such insurers as it considers advisable, including the power to pay premiums on any such insurance.
        (9) To procure insurance or guarantees from any public or private

entities, including any department, agency, or instrumentality of the United States of America, to secure payment:
            (A) on a loan, lease, or purchase payment owed by a participating provider to the authority; and
            (B) of any bonds issued by the authority, including the power to pay premiums on any such insurance or guarantee.
        (10) To procure letters of credit or other credit facilities or agreements from any national or state banking association or other entity authorized to issue a letter of credit or other credit facilities or agreements to secure the payment of any bonds issued by the authority or to secure the payment of any loan, lease, or purchase payment owed by a participating provider to the authority, including the power to pay the cost of obtaining such letter of credit or other credit facilities or agreements.
        (11) To receive and accept from any source any money, property, or thing of value to be held, used, and applied to carry out the purposes of this chapter subject to the conditions upon which the grants or contributions are made, including gifts or grants from any department, agency, or instrumentality of the United States of America for any purpose consistent with this chapter.
        (12) To provide, or cause to be provided by a participating provider, by acquisition, lease, construction, fabrication, repair, restoration, reconditioning, refinancing, or installation, health facility property to be located within a health facility.
        (13) To lease as lessor any item of health facility property for such rentals and upon such terms and conditions as the authority considers advisable and are not in conflict with this chapter.
        (14) To sell by installment or otherwise to sell by option or contract for sale, and to convey all or any part of any item of health facility property for such price and upon such terms and conditions as the authority considers advisable and as are not in conflict with this chapter.
        (15) To make contracts and incur liabilities, borrow money at such rates of interest as the authority determines, issue its bonds in accordance with this chapter, and secure any of its bonds or obligations by a mortgage or pledge of all or any of its property, franchises, and income or as otherwise provided in this chapter.
        (16) To make secured or unsecured loans for the purpose of providing temporary or permanent financing or refinancing for the cost of any item of health facility property, including the retiring of any outstanding obligations issued by a participating provider, and the reimbursement to a participating provider of advances, for

the cost of any health facility property purchased in anticipation of procuring such financing or refinancing from the authority or other sources, and to charge and collect interest on such loans for such loan payments and upon such terms and conditions as the authority considers advisable and as are not in conflict with this chapter.
        (17) To invest and reinvest its funds and to take and hold property as security for the investment of such funds as provided in this chapter.
        (18) To purchase, receive, lease (as lessee or lessor), or otherwise acquire, own, hold, improve, use, or otherwise deal in and with, health facility property, or any interest therein, wherever situated.
        (19) To sell, convey, mortgage, pledge, assign, lease, exchange, transfer, and otherwise dispose of all or any part of its property and assets.
        (20) To the extent permitted under its contract with the holders of bonds of the authority, consent to any modification with respect to the rate of interest, time, and payment of any installment of principal or interest, or any other term of any contract, loan, loan note, loan note commitment, contract, lease, or agreement of any kind to which the authority is a party.
        (21) To charge to and apportion among participating providers its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.
        (22) Except as otherwise provided in a trust agreement or bond resolution securing bonds of the authority, to invest any funds not needed for immediate disbursement, including any funds held in reserve, in such indebtedness or obligations designated by the authority for investments of its funds held under this chapter.
        (23) To collect fees and charges, as the authority determines to be reasonable, in connection with its loans, leases, sales, advances, insurance, commitments, and servicing.
        (24) To cooperate with and exchange services, personnel, and information with any federal, state, or local governmental agency.
        (25) To sell, at public or private sale, with or without public bidding, any loan or other obligation held by the authority.
        (26) To assist, coordinate, and participate with other issuers of tax exempt bonds and public officials in other states in connection with financings or refinancings on behalf of multiple state health facilities. Assistance, coordination, and participation provided under this subdivision may include conducting any hearings required by state or federal law in order for bonds to be issued by

public officials in other states if part of the proceeds of the bonds will be used by participating providers in Indiana. Neither the state of Indiana nor the authority, nor any officers, agents, or employees of the state or the authority, are subject to any liability resulting from assistance to or coordination or participation with other issuers of tax exempt bonds under this subsection. Any assistance, coordination, or participation provided under this subsection is given with the understanding that the issuers of tax exempt bonds or borrowers will agree to indemnify and hold harmless the state of Indiana and the authority and their officers, agents, and employees from all claims and liability arising from any action against the state of Indiana or the authority relating to the bonds.
         (27) To adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
    (b) No part of the revenues or assets of the authority may inure to the benefit of or be distributable to its members or officers or other private persons. Any net earnings of the authority beyond that necessary for retirement of authority indebtedness or to implement the public purposes of this chapter inure to the benefit of the state. Upon termination or dissolution, all rights and properties of the authority pass to and are vested in the state, subject to the rights of lienholders and other creditors.

SOURCE: IC 5-1-16-36; (05)SB0259.1.11. -->     SECTION 11. IC 5-1-16-36 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 36. Nothing in this chapter may be construed as a restriction or limitation upon any powers which the authority might otherwise have under any other law of this state, and this chapter is cumulative to such powers. This chapter shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized, and shall be construed as supplemental to powers conferred by any other laws. The adoption by the authority of bylaws and rules, and the issuance of bonds by the authority under this chapter need not comply with the requirements of any other state laws applicable to the adoption of bylaws and rules and the issuance of bonds, notes, and other obligations. No proceedings, notice, or approval is required for the issuance of any bonds or any instrument, or the security therefor, or for the proper conduct of the authority's business, affairs, or operations, except as provided in this chapter.
SOURCE: IC 5-1.5-3-1; (05)SB0259.1.12. -->     SECTION 12. IC 5-1.5-3-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1. The bank is granted all powers necessary, convenient, or appropriate to carry out and

effectuate its public and corporate purposes, including, but not limited to, the following:
        (1) Have a perpetual existence as a body politic and corporate, and an independent instrumentality, but not a state agency, exercising essential public functions.
        (2) Sue and be sued.
        (3) Adopt and alter an official seal.
        (4) Make and enforce bylaws and rules for the conduct of its business and for the use of its services and facilities. which bylaws and rules may be adopted by the bank without complying with IC 4-22-2.
        (5) Acquire, hold, use, and dispose of its income, revenues, funds, and money.
        (6) Acquire, rent, lease, hold, use, and dispose of property for its purposes.
        (7) Make contracts and incur liabilities, borrow money, issue its negotiable bonds or notes, subject to provisions for registration of negotiable bonds and notes, and provide for and secure their payment and provide for the rights of their holders, and purchase and hold and dispose of any of its bonds or notes.
        (8) Fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities.
        (9) Accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States, any governmental unit, or any person, carry out the terms or provisions or make agreements with respect to the gifts or grants, and do all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of the gifts or grants.
        (10) Do anything authorized by this article, through its officers, agents, or employees or by contracts with a person.
        (11) Procure insurance against any losses in connection with its property, operations, or assets in amounts and from insurers as it considers desirable.
        (12) Cooperate with and exchange services, personnel, and information with any federal, state, or local government agency.
         (13) Adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.

SOURCE: IC 5-10.3-3-8; (05)SB0259.1.13. -->     SECTION 13. IC 5-10.3-3-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 8. (a) The board may do any of the following:
        (1) Establish and amend Adopt rules: and regulations:
            (A) for the administration and regulation of the fund and the board's affairs; and
            (B) to effectuate the powers and purposes of the board.
        without adopting a rule under IC 4-22-2.
        (2) Make contracts and sue and be sued as the board of trustees of the public employees' retirement fund of Indiana.
        (3) Delegate duties to its employees.
        (4) Enter into agreements with one (1) or more insurance companies to provide life, hospitalization, surgical, medical, dental, vision, long term care, or supplemental Medicare insurance, utilizing individual or group insurance policies for retired members of the fund, and, upon authorization of the respective member, deduct premium payments for such policies from the members' retirement benefits and remit the payments to the insurance companies.
        (5) Enter into agreements with one (1) or more insurance companies to provide annuities for retired members of the fund, and, upon a member's authorization, transfer the amount credited to the member in the annuity savings account to the insurance companies.
        (6) For the 1977 police officers' and firefighters' pension and disability fund, deduct from benefits paid and remit to the appropriate entities amounts authorized by IC 36-8-8-17.2.
        (7) Whenever the fund's membership is sufficiently large for actuarial valuation, establish an employer's contribution rate for all employers, including employers with special benefit provisions for certain employees.
        (8) Amortize prior service liability over a period of forty (40) years or less.
        (9) Recover payments made under false or fraudulent representation.
        (10) Exercise all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes and to conduct its business.
    (b) An agreement under subsection (a)(4) may be for a duration of three (3) years.
    (c) This subsection does not apply to investments of the board. A contract under subsection (a)(2) may be for a term of not more than five (5) years, with an ability to renew thereafter.
    (d) The board's powers and the fund's powers specified in this chapter shall be interpreted broadly to effectuate the purposes of this chapter and may not be construed as a limitation of powers.
SOURCE: IC 5-13-12-3; (05)SB0259.1.14. -->     SECTION 14. IC 5-13-12-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. (a) The board for depositories exercises essential public functions, and has a perpetual existence. The board has all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes, including but not limited to the powers to do the following:
        (1) Adopt, amend, and repeal bylaws and rules consistent with this chapter to regulate its affairs and to effect the powers and purposes of the board. all without the necessity of adopting a rule under IC 4-22-2.
        (2) Adopt its budget on a calendar year or fiscal year as it shall determine.
        (3) Sue and be sued in its own name.
        (4) Have an official seal and alter it at will.
        (5) Maintain an office or offices at a place or places within Indiana as it may designate.
        (6) Make and execute contracts and all other instruments with either public or private entities.
        (7) Communicate with the employees of the Indiana development finance authority to the extent reasonably desirable in working on a guarantee of an industrial development obligation or credit enhancement obligation.
        (8) Deposit all uninvested funds of the public deposit insurance fund in a separate account or accounts in financial institutions that are designated as depositories to receive state funds under IC 5-13-9.5. The money in these accounts shall be paid out on checks signed by the chairman or other officers or employees of the board as it shall authorize.
        (9) Take any other act necessary or convenient for the performance of its duties and the exercise of its powers and functions under this chapter.
         (10) Adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
    (b) In enforcing any obligation of the borrower or any other person under the documents evidencing a guarantee, the board may renegotiate the guarantee, modify the rate of interest, term of the industrial development obligation or credit enhancement obligation, payment of any installment of principal or interest, or any other term of any documents, settle any obligation on the security or receipt of property or the other terms as in its discretion it deems advantageous to the public deposit insurance fund, and take any other action necessary or convenient to such enforcement.
    (c) The records of the board for depositories relating to negotiations between it and prospects for industrial development obligation or credit enhancement obligation guarantees are excepted from the provisions of IC 5-14-3-3.
SOURCE: IC 8-9.5-8-2.5; (05)SB0259.1.15. -->     SECTION 15. IC 8-9.5-8-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.5. The authority may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 10-15-2-10.5; (05)SB0259.1.16. -->     SECTION 16. IC 10-15-2-10.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.5. The foundation may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 14-12-1-10.2; (05)SB0259.1.17. -->     SECTION 17. IC 14-12-1-10.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.2. The foundation may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 14-13-1-28.5; (05)SB0259.1.18. -->     SECTION 18. IC 14-13-1-28.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 28.5. The commission may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 14-13-2-18.5; (05)SB0259.1.19. -->     SECTION 19. IC 14-13-2-18.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18.5. The commission may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 14-14-1-18.5; (05)SB0259.1.20. -->     SECTION 20. IC 14-14-1-18.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18.5. The commission may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 15-1.5-10.5-3; (05)SB0259.1.21. -->     SECTION 21. IC 15-1.5-10.5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. (a) The center for agricultural science and heritage (the barn) is established.
    (b) The barn:
        (1) is a body corporate and politic separate from the state; and
        (2) is not a state agency; and
        (3) (2) performs essential governmental functions.
    (c) The following are the purposes for which the barn is established:
        (1) To educate the public concerning the past, present, and future of American agriculture and rural life.
        (2) To educate youth and the general public about American agriculture and food systems.
        (3) To provide educational programming for youth that complements school curricula, both onsite and in the classroom.
        (4) To create a synergy between Indiana's institutions of education and agriculture related industries.
        (5) To generate economic vitality, convention activity, and tourism activity for Indiana.
        (6) To become a center for agricultural business and thinking, a clearinghouse of agricultural information, a resource center for educators and the public, and a repository for agricultural artifacts and history.
        (7) To create a central, prominent partner with whom agricultural organizations can launch, collaborate on, and coordinate programs.
        (8) To position Indiana as the recognized agricultural center of the nation.
SOURCE: IC 20-12-0.5-8; (05)SB0259.1.22. -->     SECTION 22. IC 20-12-0.5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 8. The commission shall have the following powers and duties:
        (1) To develop, continually keep current, and implement a long range plan for postsecondary education. In developing this plan, the commission shall take into account the plans and interests of the state private institutions, anticipated enrollments in state postsecondary institutions, financial needs of students, and other factors pertinent to the quality of educational opportunity available to the citizens of Indiana. The plan shall define the educational missions and the projected enrollments of the various state educational institutions.
        (2) To consult with and make recommendations to the commission on vocational and technical education within the department of workforce development on all postsecondary vocational education programs. The commission shall biennially prepare a plan for implementing postsecondary vocational education programming after considering the long range state plan developed under IC 20-1-18.3-10. The commission shall submit this plan to the commission on vocational and technical education within the department of workforce development for its review and recommendations, and shall specifically report on how the plan addresses preparation for employment.
        (3) To make recommendations to the general assembly and the governor concerning the long range plan, and prepare to submit drafts and proposed legislation needed to implement the plan. The commission may also make recommendations to the general assembly concerning the plan for postsecondary vocational education under subdivision (2).
        (4) To review the legislative request budgets of all state educational institutions preceding each session of the general assembly and to make recommendations concerning appropriations and bonding authorizations to state educational institutions including public funds for financial aid to students by any state agency. The commission may review all programs of any state educational institution, regardless of the source of funding, and may make recommendations to the governing board of the institution, the governor, and the general assembly concerning the funding and the disposition of the programs. In making this review, the commission may request and shall receive, in such form as may reasonably be required, from all state educational institutions, complete information concerning all receipts and all expenditures.
        (5) To submit to the commission on vocational and technical education within the department of workforce development for its review under IC 20-1-18.3-15 the legislative budget requests prepared by state educational institutions for state and federal funds for vocational education. These budget requests shall be prepared upon request of the budget director, shall cover the period determined by the budget director, and shall be made available to the commission within the department of workforce development before review by the budget committee.
        (6) To make, or cause to be made, studies of the needs for various types of postsecondary education and to make recommendations to the general assembly and the governor concerning the organization of these programs. The commission shall make or cause to be made studies of the needs for various types of postsecondary vocational education and shall submit to the commission on vocational and technical education within the department of workforce development the commission's findings in this regard.
        (7) To approve or disapprove the establishment of any new branches, regional or other campuses, or extension centers or of any new college or school, or the offering on any campus of any additional associate, baccalaureate, or graduate degree, or of any

additional program of two (2) semesters, or their equivalent in duration, leading to a certificate or other indication of accomplishment. After March 29, 1971, no state educational institution shall establish any new branch, regional campus, or extension center or any new or additional academic college, or school, or offer any new degree or certificate as defined in this subdivision without the approval of the commission or without specific authorization by the general assembly. Any state educational institution may enter into contractual agreements with governmental units or with business and industry for specific programs to be wholly supported by the governmental unit or business and industry without the approval of the commission.
        (8) If so designated by the governor or the general assembly, to serve as the agency for the purposes of receiving or administering funds available for postsecondary education programs, projects, and facilities for any of the acts of the United States Congress where the acts of Congress require the state to designate such an agency or commission. However, this subdivision does not provide for the designation of the commission by the governor as the recipient of funds which may be provided by acts of the United States Congress, received by an agency, a board, or a commission designated by the general assembly.
        (9) To designate and employ an executive officer and necessary employees, to designate the titles of the executive officer and necessary employees, and to fix the compensation in terms of the employment.
        (10) To appoint appropriate advisory committees composed of representatives of state educational institutions, representatives of private colleges and universities, students, faculty, and other qualified persons.
        (11) To employ all powers properly incident to or connected with any of the foregoing purposes, powers, or duties, including the power to adopt rules under IC 4-22-2.
        (12) To develop a definition for and report biennially to the:
            (A) general assembly;
            (B) governor; and
            (C) commission on vocational and technical education within the department of workforce development;
        on attrition and persistence rates by students enrolled in state vocational education. A report under this subdivision to the general assembly must be in an electronic format under IC 5-14-6.
        (13) To submit a report to the legislative council not later than

August 30 of each year on the status of the transfer of courses and programs between state educational institutions. The report must include any changes made during the immediately preceding academic year.
        (14) To direct the activities of the committee, including the activities set forth in subdivisions (15) and (16).
        (15) To develop through the committee statewide transfer of credit agreements for courses that are most frequently taken by undergraduates.
        (16) To develop through the committee statewide agreements under which associate of arts and associate of science programs articulate fully with related baccalaureate degree programs.
        (17) To publicize by all appropriate means, including an Internet web site, a master list of course transfer of credit agreements and program articulation agreements.

SOURCE: IC 20-12-63-11; (05)SB0259.1.23. -->     SECTION 23. IC 20-12-63-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 11. The authority shall have the following functions and powers: set forth in this section.
        (1) The authority may adopt rules and bylaws for the regulation of the authority's business.
        (2) The authority may adopt an official seal and alter the official seal.
        (3) The authority may maintain an office or offices at a place or places designated by the authority.
        (4) The authority may sue, and be sued, plead, and be impleaded in the authority's own name.
        (5) The authority may determine the location and character of any project to be financed under this chapter. The authority may construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease as lessee or lessor, regulate any project, or enter into contracts for any purpose stated in this subdivision. The authority may designate a private institution of higher education as the authority's agent to carry out the authority of this subsection.
        (6) The authority may issue bonds or fund and refund bonds as provided in this chapter.
        (7) The authority may require that the rates, rents, fees, or charges established by a private institution of higher education are sufficient to discharge the institution's obligations to the authority but shall have no other jurisdiction over such rates, rents, fees, or charges.
        (8) The authority may establish adopt rules under IC 4-22-2 for

the use of a project or any portion thereof and or designate a private institution of higher education as the authority's agent to establish adopt rules for the use of a project undertaken for that institution.
        (9) The authority may employ consulting engineers, architects, attorneys, accountants, trustees, construction and financial experts, superintendents, managers, and such other employees and agents as may be necessary in the authority's judgment, and fix their compensation.
        (10) The authority may receive and accept from any source loans, contributions, or grants for or in aid of the construction or funding of a project or any portion thereof in either money, property, labor, or other things of value and, when required, use such funds, property, or labor only for the purposes for which the money, property, or labor was loaned, contributed, or granted.
        (11) The authority may make loans to any private institution of higher education for the cost of a project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group for the purpose of providing insurance coverage against liability claims or other losses in accordance with an agreement between the authority and the private institution of higher education. No such loan may exceed the total cost of the project as determined by such institution and approved by the authority.
        (12) The authority may make loans to a private institution of higher education to refund outstanding obligations or advances issued, made, or given by such institution for the cost of a project, including the establishment of liability or other loss insurance reserves or the contribution of those reserves to a risk retention group for the purpose of providing insurance coverage against liability claims or other losses. In addition, the authority may issue bonds and make loans to a private institution of higher education to refinance indebtedness incurred or to reimburse advances made for projects undertaken prior to the date of the bond issue whenever the authority finds that such financing is in the public interest and either:
            (A) alleviates a financial hardship upon the private institution of higher education;
            (B) results in a lesser cost of education; or
            (C) enables the private institution of higher education to offer greater security for a loan or loans to finance a new project or projects or to effect savings in interest costs or more favorable

amortization terms.
        (13) The authority may charge to and apportion among private institutions of higher education the authority's administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.
        (14) The authority may, for financing purposes, combine a project or projects and some or all future projects of any private institution or institutions of higher education provided that:
            (A) the authority obtains the consent of all of the private institutions of higher education which are involved, or when financing loans for the funding of liability or other loss insurance reserves or for the providing of those reserves or other capital to be contributed to a risk retention group, the authority obtains the consent of all of the eligible members that are involved; and
            (B) the money set aside in any fund or funds pledged for any series of bonds or issue of bonds are held for the sole benefit of such series or issue separate and apart from the money pledged for any other series or issue of bonds of the authority.
        To facilitate the combining of projects, bonds may be issued in series under one (1) or more resolutions or trust agreements and be fully open end, thus providing for unlimited issuance of additional series, or partially open end, limited as to additional series, all in the discretion of the authority. Notwithstanding any provision of this chapter to the contrary, the authority may permit a private institution of higher education to substitute one (1) or more educational facilities of similar value (as determined by an independent appraiser satisfactory to the authority) as security for any educational facility financed under this chapter on such terms and conditions as the authority may prescribe.
        (15) The authority may mortgage all or any portion of any project and any other educational facilities conveyed to the authority for such purpose and the site or sites thereof, whether presently owned or subsequently acquired, for the benefit of the holders of the bonds of the authority issued to finance such project or any portion thereof or issued to refund or refinance outstanding indebtedness of a private institution of higher education as permitted by this chapter.
        (16) The authority may join in a risk retention group with corporations (as defined in IC 20-12-6-1) or any private institution of higher education.
        (17) The authority may do all things necessary to carry out the

purposes of this chapter.
         (18) The authority may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.

SOURCE: IC 20-12-63-28; (05)SB0259.1.24. -->     SECTION 24. IC 20-12-63-28 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 28. Supplemental Effect. The provisions of this chapter provide a complete, additional, and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws. provided that the adoption of rules and However, the issuance of bonds under this chapter need not comply with the requirements of any other law applicable thereto. Except as otherwise expressly provided in this chapter, none of the powers granted to the authority under this chapter shall be subject to the supervision or regulation or require the approval or consent of any municipality or political subdivision or any department, division, commission, board, body, bureau, official, or agency thereof or of the state.
SOURCE: IC 21-6.1-3-7; (05)SB0259.1.25. -->     SECTION 25. IC 21-6.1-3-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. (a) The board may do any of the following:
        (1) Adopt and enforce rules and regulations regarding the fund's administration and the control and investment of the fund. under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
        (2) Bond employees for the fund's protection.
        (3) Receive from the federal government the state's share of the cost of the pension contribution for a member on leave of absence to work in a federally supported educational project.
        (4) Sue and be sued as the board of trustees of the Indiana state teachers' retirement fund.
        (5) Summon and examine witnesses when adjusting claims.
        (6) Require, when adjusting disability claims, medical examinations by doctors approved or appointed by the board. However, not more than two (2) examinations may be conducted in one (1) year.
        (7) Conduct investigations to help determine the merit of a claim.
        (8) Meet any emergency which may arise in the administration of its trust.
        (9) Determine other matters regarding its trust which are not specified.
        (10) Enter into agreements with one (1) or more insurance companies to provide life, hospitalization, surgical, medical,

dental, vision, long term care, or supplemental Medicare insurance, utilizing individual or group insurance policies for retired teachers, and, upon authorization of the respective retired teacher, deduct premium payments for such policies from the teachers' retirement benefits and remit the payments to the insurance companies.
        (11) Enter into agreements with one (1) or more insurance companies to provide annuities for retired teachers and upon a member's authorization transfer the amount credited to the member in the annuity savings account to the insurance companies.
        (12) Exercise all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes and to conduct its business.
        (13) Establish and amend rules and regulations:
            (A) for the administration and regulation of the fund and the board's affairs; and
            (B) to effectuate the powers and purposes of the board;
        without adopting a rule under IC 4-22-2.
    (b) An agreement under subsection (a)(10) may be for a duration of three (3) years.
    (c) This subsection does not apply to:
        (1) an agreement under subsection (a)(10); or
        (2) investments of the board.
A contract that the board enters into under section 9(b) of this chapter or any other provision may be for a term of not more than five (5) years, with an ability to renew thereafter.
    (d) The board's powers and the fund's powers specified in this chapter shall be interpreted broadly to effectuate the purposes of this chapter and may not be construed as a limitation of powers.

SOURCE: IC 23-6-3-6; (05)SB0259.1.26. -->     SECTION 26. IC 23-6-3-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. The society may adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
SOURCE: IC 27-1-29-7; (05)SB0259.1.27. -->     SECTION 27. IC 27-1-29-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. (a) The commission is granted all powers necessary, convenient, or appropriate to carry out and effectuate its public and corporate purposes under this chapter and IC 27-1-29.1 including, but not limited to, and except as otherwise restricted in this chapter or IC 27-1-29.1:
        (1) The power to have perpetual existence as a body corporate and

politic, and an independent instrumentality, but not a state agency, exercising essential public functions.
        (2) The power to sue and be sued.
        (3) The power to adopt and alter an official seal.
        (4) The power to make and enforce bylaws and rules for the conduct of its business. which bylaws and rules may be adopted by the commission without complying with IC 4-22-2.
        (5) The power to make contracts and incur liabilities, borrow money, issue its negotiable bonds or notes in accordance with this chapter, subject to provisions for registration of negotiable bonds and notes, and provide for and secure their payment and provide for the rights of their holders, and purchase and hold and dispose of any of its bonds or notes.
        (6) The power to acquire, hold, use, and dispose of its income, revenues, funds, and money.
        (7) The power to acquire, rent, lease, hold, use, and dispose of property for its purposes.
        (8) The power to fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities.
        (9) The power to accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States, any governmental unit, or any person, carry out the terms or provisions or make agreements with respect to the gifts or grants, and do all things necessary, useful, desirable, or convenient in connection with procuring, accepting, or disposing of the gifts or grants.
        (10) The power to do anything authorized by this article, through its officers, agents, or employees or by contracts with a person.
        (11) The power to procure insurance against any losses in connection with its property, operations, or assets in amounts and from insurers as it considers desirable.
        (12) The power to cooperate with and exchange services, personnel, and information with any federal, state, or local government agency.
    (b) The commission may:
        (1) implement a statewide program of loss control and risk management to minimize the liabilities of members of the fund;
        (2) contract with any persons or entities to obtain or provide the services of risk managers, actuaries, loss control specialists, attorneys, and other professionals in carrying out its powers and duties under this chapter and to pay for those services from the fund;


        (3) exercise control over the defense of members of the fund against tort claims, including the selection and retention of legal counsel, the direction of counsel in the conduct of cases, and the negotiation and acceptance or rejection of any settlement;
        (4) establish procedures by which political subdivisions can gain or regain membership and relinquish membership in the fund;
        (5) establish procedures and criteria for the imposition of assessments to be paid by members of the fund, and the payment of members' liabilities;
        (6) establish programs for the payment of money from the fund to compensate members for damage to or loss of real or personal property;
        (7) establish programs for the payment of:
            (A) liabilities covered under IC 34-13-3 (or IC 34-4-16.5 before its repeal); and
            (B) liabilities that are not covered under IC 34-13-3 (or IC 34-4-16.5 before its repeal), including, but not limited to, liability due to alleged violations of the Constitution of the United States or federal civil rights statutes by law enforcement officers;
        (8) establish programs by which members can protect their elected officers and employees against liability arising from their alleged errors or omissions;
        (9) establish procedures by which a member of the fund can settle small claims that are within the deductible provision of coverage under the fund;
        (10) capitalize the fund by levying against each member of the fund an annual surcharge over and above the assessment imposed against the member under section 12 of this chapter; and
        (11) establish any other programs or procedures the commission considers necessary for the implementation of this chapter; and
        (12)
adopt rules under IC 4-22-2 necessary or appropriate to perform its duties and exercise its powers.
The amount of the surcharge levied against a member of the fund for a particular year under subdivision (10) may not exceed twenty-five percent (25%) of the member's assessment for the same year.
    (c) The commission shall file a report in an electronic format under IC 5-14-6 with the general assembly each year concerning the operations of the commission and the condition of the fund.
SOURCE: ; (05)SB0259.1.28. -->     SECTION 28. [EFFECTIVE UPON PASSAGE] (a) This SECTION applies to the following instrumentalities of state government:
        (1) Indiana economic development corporation (IC 4-1.5-3).
        (2) Indiana development finance authority (IC 4-4-11).
        (3) State office building commission (IC 4-13.5).
        (4) Indiana recycling and energy development board (IC 4-23-5.5).
        (5) State lottery commission (IC 4-30-3).
        (6) Indiana health facility financing authority (IC 5-1-16).
        (7) Indiana bond bank (IC 5-1.5).
        (8) Law enforcement academy building commission (IC 5-2-2).
        (9) Board of trustees of the public employees' retirement fund (IC 5-10.3-3).
        (10) Board for depositories (IC 5-13-12).
        (11) Indiana housing finance authority (IC 5-20-1).
        (12) Intelenet commission (IC 5-21).
        (13) Indiana transportation finance authority (IC 8-9.5-8).
        (14) Indiana port commission (IC 8-10-1).
        (15) Bureau of motor vehicles commission (IC 9-15).
        (16) Indiana emergency management, fire and building services, and public safety training foundation (IC 10-15).
        (17) Indiana natural resources foundation (IC 14-12-1).
        (18) Indiana White River state park development commission (IC 14-13-1).
        (19) Little Calumet River basin development commission (IC 14-13-2).
        (20) Recreational development commission (IC 14-14-1).
        (21) State fair commission (IC 15-1.5-2).
        (22) Center for agricultural science and heritage (IC 15-1.5-10.5).
        (23) Commission for higher education (IC 20-12-0.5).
        (24) State student assistance commission (IC 20-12-21).
        (25) Indiana educational facilities authority (IC 20-12-63).
        (26) Board of trustees of the Indiana state teachers' retirement fund (IC 21-6.1-3).
        (27) Indiana education savings authority (IC 21-9-3).
        (28) Indiana grain indemnity corporation (IC 26-4-3).
        (29) Indiana political subdivision risk management commission (IC 27-1-29).
        (30) Wireless enhanced 911 advisory board (IC 36-8-16.5).
    (b) Except as otherwise provided in this SECTION, the definitions in IC 4-22-2-3, as amended by this act, apply throughout this SECTION.
    (c) Not later than October 1, 2005, an instrumentality of state government shall submit a written copy of a rule that:
        (1) was adopted by the instrumentality of state government before July 1, 2005, without complying with IC 4-22-2;
        (2) was adopted by the instrumentality of state government at or after a public meeting or hearing at which the rule was presented by the instrumentality of state government and open for discussion by:
            (A) members, directors, trustees, officers, or other representatives of the instrumentality; and
            (B) members of the public in attendance at the meeting, if applicable;
        (3) is in force on June 30, 2005; and
        (4) has not been published:
            (A) as a final rule in the Indiana Register; or
            (B) in the Indiana Administrative Code or a supplement to the Indiana Administrative Code;
        before July 1, 2005;
to the publisher for the assignment of a document control number. A rule submitted under this subsection is exempt from the requirements established by the publisher under IC 4-22-2-42. The publisher shall determine the number of copies of the rule to be submitted to the publisher under this subsection. If a rule submitted under this subsection incorporates matters described in IC 4-22-2-21(a), the instrumentality may incorporate the matters into the rule by reference, as allowed under IC 4-22-2-21.
    (d)
After a document control number has been assigned to the rule under subsection (c), the instrumentality of state government shall submit the rule to the secretary of state for filing. A rule submitted under this subsection is exempt from the requirements established by the publisher under IC 4-22-2-42. The secretary of state shall determine the number of copies of the rule to be submitted to the secretary of state under this subsection. If a rule submitted under this subsection incorporates matters described in IC 4-22-2-21(a), the instrumentality may incorporate the matters into the rule by reference, as allowed under IC 4-22-2-21. The secretary of state shall accept a rule for filing under subsection (e) if the instrumentality of state government submits the number of copies required by the secretary of state under this subsection and each copy of the rule includes:
        (1) a reference to the document control number assigned to the rule by the publisher under subsection (c); and
        (2) a statement that the instrumentality of state government submits the rule under the authority of SEA 259-2005.
    (e) Notwithstanding IC 4-22-2-39(a)(3), the secretary of state shall:
        (1) accept a rule submitted under subsection (d) for filing if the rule complies with subsection (d)(1) through (d)(2); and
        (2) file stamp and indicate the date and time the rule is accepted on every duplicate copy submitted.
The secretary of state shall comply with IC 4-22-7-5 upon accepting a rule for filing under this subsection. However, notwithstanding IC 4-22-2-7(d)(2), the secretary of state
shall distribute two (2) duplicate copies of the rule to the attorney general not later than one (1) business day after the date the secretary of state accepts a rule for filing under this subsection.
    (f) Upon receipt of a rule from the secretary of state under subsection (e), the attorney general may review the rule for legality. Not later than April 1, 2006, the attorney general may disapprove a rule reviewed under this subsection and shall send notice, by certified mail, of the attorney general's determination to the secretary of state, the publisher, and the instrumentality of state government. Subject to subsection (g), the attorney general may disapprove a rule under this subsection only if the attorney general determines that:
        (1) the rule was not adopted by the instrumentality of state government at or after a public meeting or hearing described in subsection (c)(2);
        (2) the instrumentality of state government did not have rulemaking authority under IC 4-22-2-13(a), as amended by this act;
        (3) the rule violates another law; or
        (4) the rule may constitute the taking of property without just compensation to an owner.
    (g) If, in the course of a review conducted under subsection (f), the attorney general determines that a rule may constitute a taking of property under subsection (f)(4), the attorney general shall advise the instrumentality of state government of the attorney general's determination. Advice given to the instrumentality under this subsection shall be regarded as confidential attorney-client communication.
    (h) A rule disapproved by the attorney general under subsection (f) is invalid and does not have the effect of law until:
        (1) the rule is adopted in conformity with IC 4-22-2; and
        (2) any defect described in subsection (f)(1) through (f)(4) is remedied.
    (i) If the attorney general does not issue a notice of disapproval under subsection (f) before April 2, 2006, a rule submitted by an instrumentality of state government under subsection (c) is considered approved, and the publisher may proceed to publish the rule under subsection (j).

    (j) After April 1, 2006, and in any case not later than June 30, 2007, the publisher shall publish in the Indiana Register a rule:
        (1) that is distributed to the publisher by the secretary of state under IC 4-22-7-5(b);
        (2) that contains a statement described in subsection (d)(2); and
        (3) for which the publisher has not received a notice of disapproval from the attorney general under subsection (f);

subject to the publisher's then existing deadline for the submission of a rule for publication.
    (k) In publishing a rule under subsection (j), the publisher may:
        (1) reformat, renumber, or revise the rule to conform to:
            (A) the typographical style and layout standards established under IC 4-22-8-10; and
            (B) the format, numbering system, standards, and techniques established under IC 4-22-2-42; or
        (2) subject to subsection (l), publish the rule in the form submitted by the instrumentality of state government, along with a publisher's notice that the rule was exempt from IC 4-22-2-42 at the time of the rule's adoption.
    (l) If the publisher elects under subsection (k)(2) to publish a rule in the form submitted by the instrumentality of state government, the publisher shall ensure that the publisher's notice under subsection (k)(2), or the manner in which the rule is indexed in the Indiana Register, does the following:
        (1) Identifies the rule by:
            (A) Indiana Register document control number and volume and page number;
            (B) year of adoption, as indicated by the instrumentality of state government in its submission under subsection (c); and
            (C) general subject matter.
        (2) Enables the secretary of state, an agency, or the commission on public records to comply with a request under IC 5-14-3 to inspect or copy the rule.
    (m) After publishing a rule in the Indiana Register under subsection (j), the publisher shall codify the rule in the next publication of the Indiana Administrative Code, or in the next supplement to the Indiana Administrative Code, under the procedures set forth in IC 4-22-8.
    (n) Notwithstanding IC 4-22-2-3, as amended by this act, and IC 4-22-2-44, a rule described in subsection (c) remains in effect on July 1, 2005. However, the rule is voided:
        (1) on October 2, 2005, if the rule is not submitted to the publisher before October 2, 2005, as required under subsection (c); or
        (2) on the date specified in the notice issued by the attorney general under subsection (f), if the rule is submitted to the publisher before October 2, 2005, as required under subsection (c), but is disapproved by the attorney general under subsection (f).
    (o) After June 30, 2005, IC 4-22-7-7 applies to all statements described in IC 4-22-7-7(a) that:
        (1) are adopted by an instrumentality of state government after June 30, 2005; or
        (2) were adopted by an instrumentality of state government before July 1, 2005, and specify policies on which the instrumentality still relies on July 1, 2005.
    (p) This SECTION expires July 1, 2007.

SOURCE: ; (05)SB0259.1.29. -->     SECTION 29. An emergency is declared for this act.