January 31, 2006
SENATE BILL No. 345
DIGEST OF SB 345
(Updated January 30, 2006 4:13 pm - DI 44)
Citations Affected: IC 6-1.1; noncode.
Synopsis: Reversal of payment delays. Requires the reversal of part of
the payment delays in the schedule under which: (1) property tax
replacement credit and homestead credit amounts are distributed to
taxing units; and (2) distributions to state educational institutions are
made. Makes an appropriation.
Effective: July 1, 2006; January 1, 2007.
Meeks, Simpson, Hume, Miller
January 10, 2006, read first time and referred to Senate Committee on Appropriations.
January 26, 2006, amended, reported favorably _ Do Pass.
January 30, 2006, read second time, amended, ordered engrossed.
January 31, 2006
Second Regular Session 114th General Assembly (2006)
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between statutes enacted by the 2005 Regular Session of the General Assembly.
SENATE BILL No. 345
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-21-10; (06)SB0345.2.1. -->
SECTION 1. IC 6-1.1-21-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2007]: Sec. 10. (a) There is
established a property tax replacement fund board to consist of the
commissioner of the department, the commissioner of the department
of local government finance, the director of the budget agency, and two
(2) ex officio nonvoting representatives of the general assembly of the
state of Indiana. The speaker of the house of representatives shall
appoint one (1) member of the house as one (1) of the ex officio
nonvoting representatives, and the president pro tempore of the senate
shall appoint one (1) senator as the other ex officio nonvoting
representative, each to serve at the will of the appointing officer. The
commissioner of the department shall be the chairman of the board, and
the director of the budget agency shall be the secretary of the board.
(b) Except as provided in section 10.5 of this chapter, the schedule
to be used in making distributions to county treasurers during the
periods set forth in section 4(b) of this chapter is as follows:
The board may authorize the department to distribute the estimated
distributions to counties earlier than what is required under section 4(b)
of this chapter.
(c) The board is also authorized to transfer funds from the property
tax replacement fund for the purpose of providing financial aid to
school corporations as provided in IC 21-3.
SOURCE: ; (06)SB0345.2.2. -->
SECTION 2. [EFFECTIVE JULY 1, 2006] (a) The purpose of this
SECTION is to reduce accrued payment delay balances that were
created because of the amendment to IC 6-1.1-21-10 made by
P.L.192-2002(ss), SECTION 43, to move the May distribution to
July beginning with the May 2003 distribution and a continuation
of the practice of delayed payments in subsequent years.
(b) There is appropriated to the property tax replacement board
one hundred thirty-six million five hundred thousand dollars
($136,500,000) from the state general fund and the property tax
replacement fund, in the percentage determined by the budget
agency, for its use to distribute the amount of the increase in the
May 2007 distribution required under IC 6-1.1-21-10, as amended
by this act, beginning July 1, 2006, and ending June 30, 2007.
(c) A distribution described in subsection (b) raises the
maximum permissible distribution for property tax replacement
credits and homestead credits that may be made in the state fiscal
year beginning July 1, 2006, and ending June 30, 2007, by the
amount of the distribution.
(d) A distribution described in subsection (b) shall be treated as
a distribution under IC 6-1.1-21 for the calendar year in which the
distribution is made. An early additional distribution described in
subsection (b) reduces the amount of the distribution that would
otherwise have been made in July 2007 under IC 6-1.1-21-10, as
effective before the amendment made by this act, by the amount of
the additional distribution.
SOURCE: ; (06)SB0345.2.3. -->
SECTION 3. [EFFECTIVE JULY 1, 2006] (a) The purpose of this
SECTION is to reduce accrued payment delay balances to state
educational institutions and IHETS that were created because of
the distribution of eleven-twelfths (11/12) of the budgeted amount
in the state fiscal year ending June 30, 2002, and a continuation of
the practice of delayed payments in subsequent state fiscal years
through the state fiscal year ending June 30, 2005.
(b) The following definitions apply throughout this SECTION:
(1) "IHETS" refers to the Indiana Higher Education
(2)"State educational institution" has the meaning set forth in
(c) There is appropriated to the budget agency forty million
dollars ($40,000,000) from the state general fund for its use for
general repair and rehabilitation or repair and rehabilitation of
dormitories or other student housing of state educational
institutions, beginning July 1, 2006, and ending June 30, 2007, as
INDIANA UNIVERSITY - TOTAL SYSTEM
PURDUE UNIVERSITY - TOTAL SYSTEM
INDIANA STATE UNIVERSITY
UNIVERSITY OF SOUTHERN INDIANA
BALL STATE UNIVERSITY
IVY TECH COMMUNITY COLLEGE
(d) Notwithstanding P.L.246-2005, SECTION 32, after review
by the budget committee, the budget agency shall distribute to a
state educational institution after June 30, 2006, and before July 1,
2007, the amount appropriated to the state educational institution
under subsection (c). The distributions under subsection (c):
(1) may be made in one (1) or more installments after June 30,
2006, and before July 1, 2007, on the schedule determined by
the budget agency after review of the schedule by the budget
(2) shall be separately allotted.
(e) An appropriation under subsection (c) is in addition to the
appropriations for general repair and rehabilitation made in
P.L.246-2005, SECTION 32, or any other law. Notwithstanding
any other law, an appropriation under subsection (c) does not
revert to the general fund under IC 4-13-2-19.
(f) The amount appropriated under subsection (c), when
distributed to a state educational institution, shall be treated as
reducing any claim that the total system of the state educational
institution has to one-twelfth (1/12) of the amount budgeted for the
state educational institution in all line items in HEA 1001-2003,
SECTION 9, for the state fiscal year ending June 30, 2005. Subject
to subsection (g), the amount of the claim reduction for each
institution is equal to the amount distributed to the state
educational institution. The amount of the claim reduction for the
entire system and the amount apportioned for each institution
individually shall be computed by the budget agency. The budget
agency makes the final determination.
(g) An amount appropriated under subsection (c), when
distributed to Indiana University, shall be treated as reducing any
claim that IHETS has to one-twelfth (1/12) of the amount budgeted
for the IHETS in all line items in HEA 1001-2003, SECTION 9, for
the state fiscal year ending June 30, 2005. The amount of the claim
reduction is a part of the amount distributed to Indiana
University-Total System apportioned as determined by the budget