HB 1362-1_ Filed 02/23/2006, 10:45

COMMITTEE REPORT

MADAM PRESIDENT:

    The Senate Committee on Governmental Affairs and Interstate Cooperation, to which was referred House Bill No. 1362, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 2, line 42; (06)CR136202.2. -->     Page 2, delete line 42, begin a new paragraph and insert:
    " Sec. 2. This article contains full and complete authority for the following:
        (1) Reorganization of political subdivisions.
        (2) Exercise of governmental functions under a cooperative agreement under this article.
        (3) Transfer of responsibilities between offices and officers under this article.
".
    Page 3, delete line 1.
    Page 3, line 6, delete "to reorganize under this article." and insert " to:
        (1) reorganize;
        (2) exercise governmental functions under a cooperative agreement; or
        (3) transfer responsibilities between offices and officers;
under this article.
".
    Page 3, delete lines 17 through 19, begin a new paragraph and insert:
    " Sec. 7. This article does not prohibit the:
        (1) reorganization of one (1) or more political subdivisions;
        (2) exercise of governmental functions under a cooperative agreement; or
        (3) transfer of responsibilities between offices and officers;
under another law that is not included in this article.
".
    Page 3, between lines 21 and 22, begin a new paragraph and insert:
    " Sec. 9. Political subdivisions and reorganization committees acting under this article are subject to IC 5-14-1.5 (open door law) and IC 5-14-3 (public records law).".
    Page 5, line 9, after "1." insert " (a)".
    Page 5, line 13, delete "." and insert " located entirely within the same county.".
    Page 5, line 36, delete "and the" and insert " and a".
    Page 5, line 36, after "county" insert " having a population of not more than one hundred seventy thousand (170,000)".
    Page 5, between lines 37 and 38, begin a new line block indented and insert:
        " (10) A municipality and a county:
            (A) that has a population of more than one hundred seventy thousand (170,000);
            (B) that does not contain a consolidated city; and
            (C) in which a majority of the population of the municipality resides.
".
    Page 5, line 38, delete "(10)" and insert " (11)".
    Page 5, line 41, delete "(11)" and insert " (12)".
    Page 6, between lines 1 and 2, begin a new paragraph and insert:
    " (b) If a political subdivision reorganizes under this article with one (1) or more other political subdivisions:
        (1) any political subdivisions that did not participate in the public question on the reorganization are not reorganized under this article;
        (2) the reorganization affects only those political subdivisions in which the reorganization is approved as specified in this article; and
        (3) the reorganization does not affect the rights, powers, and duties of any political subdivisions in the county in which the reorganization is not approved as specified in this article.
".
    Page 6, line 35, after "subdivision" insert " or (in the case of a reorganization described in section 1(10) of this chapter) by the voters of the entire county".
    Page 7, line 39, delete "." and insert " , subject to section 40 of this chapter.".
    Page 9, line 2, delete "ten percent (10%)" and insert " five percent (5%)".
    Page 9, delete line 17.
    Page 9, line 18, delete "(2)" and insert " (1)".
    Page 9, line 20, delete "(3)" and insert " (2)".
    Page 9, delete line 30.
    Page 9, line 31, delete "(2)" and insert " (1)".
    Page 9, line 33, delete "(3)" and insert " (2)".
    Page 9, line 37, delete "(4)" and insert " (3)".
    Page 14, line 12, after "subdivisions" delete "." and insert " or (in the case of a reorganization described in section 1(10) of this chapter) for consideration by the voters of the entire county.".
    Page 14, line 29, delete "At" and insert " (a) Except as provided in subsection (b), at".
    Page 15, between lines 6 and 7, begin a new paragraph and insert:
    " (b) In the case of a public question on a reorganization described in section 1(10) of this chapter:
        (1) the vote on the public question shall be tabulated on a countywide basis;
        (2) the circuit court clerk shall issue, in a form prescribed by the state election board, a certificate declaring whether the public question is approved by a majority of the voters of the county voting on the public question;
        (3) the reorganization is approved if a majority of the voters of the county voting on the public question approve the reorganization; and
        (4) it is not required for approval of the reorganization that a majority of the voters of each of the reorganizing political subdivisions approve the reorganization.
".
    Page 15, line 11, after "32." insert " (a) This subsection does not apply to a reorganization described in section 1(10) of this

chapter.".
    Page 15, line 15, delete "township)" and insert " city)".
    Page 15, line 16, delete "county)" and insert " township)".
    Page 15, between lines 20 and 21, begin a new paragraph and insert:
    " (b) This subsection applies only to a reorganization described in section 1(10) of this chapter. The reorganization is approved if a majority of the voters of the county voting on the public question on the reorganization approve the reorganization.".
    Page 15, line 33, after "reorganization" delete "." and insert " or (in the case of a reorganization described in section 1(10) of this chapter) if a majority of the voters of the entire county approve the public question concerning the reorganization.".
    Page 17, delete lines 27 through 42, begin a new paragraph and insert:
    " Sec. 40. The following apply in the case of a reorganization under this article:
        (1) Indebtedness that was incurred by a political subdivision before the reorganization:
            (A) may not be imposed on taxpayers that were not responsible for payment of the indebtedness before the reorganization; and
            (B) must be paid by the taxpayers that were responsible for payment of the indebtedness before the reorganization.
        (2) Pension obligations existing as of the effective date of the reorganization:
            (A) may not be imposed on taxpayers that were not responsible for payment of the pension obligations before the reorganization; and
            (B) must be paid by the taxpayers that were responsible for payment of the pension obligations before the reorganization.
".
    Page 18, delete lines 1 through 34.
    Page 20, between lines 28 and 29, begin a new paragraph and insert:
    " Chapter 5. Cooperative Agreements and Transfers of Responsibilities
    Sec. 1. Notwithstanding any other law, two (2) or more political

subdivisions may enter into a cooperative agreement under this chapter by using the same procedures set forth in this article for the initiation and approval of a reorganization under this article. A cooperative agreement under this chapter may be initiated and approved only in the manner set forth in this article for the initiation and approval of a reorganization under this article.
    Sec. 2. (a) A cooperative agreement under this chapter must provide at least for the following:
        (1) Its duration.
        (2) Its purpose.
        (3) The manner of financing, staffing, and supplying any joint undertaking and of establishing and maintaining a budget for any joint undertaking that is the subject of the cooperative agreement.
        (4) The methods that may be employed in accomplishing the partial or complete termination of the cooperative agreement and for disposing of property upon partial or complete termination of the cooperative agreement.
        (5) The manner in which the cooperative agreement is to be administered.
        (6) The manner of acquiring, holding, and disposing of real and personal property that is the subject of the cooperative agreement.

     (b) A cooperative agreement may include any condition or term that is necessary or appropriate.
    Sec. 3. (a) The cooperative agreement may transfer the functions of an employee or a department of a political subdivision, including an elected office, to another employee or department of any political subdivision that has entered into the cooperative agreement.
    (b) The functions of an elected office may be transferred only to another elected office.
    (c) The cooperative agreement may provide for the abolishment of an elected office that is not required by the Constitution of the State of Indiana.
    Sec. 4. A political subdivision may enter into a cooperative agreement with an entity to share the services of an employee

employed by any party to the agreement.
    Sec. 5. A cooperative agreement may provide that a political subdivision:
        (1) may appropriate and pledge any legally available revenues to the payment of the bonds, leases, or other obligations of another political subdivision that is a party to the cooperative agreement; and
        (2) will appropriate legally available revenues for any other payment under the cooperative agreement;
if the political subdivision's fiscal body finds that it is necessary, desirable, and in the best interests of the residents of that political subdivision.
    Sec. 6. (a) A cooperative agreement may not permit an entity or another instrumentality established to administer the cooperative agreement to take any action that at least one (1) of the parties to the cooperative agreement could not carry out on its own.
    (b) A cooperative agreement may permit the transfer of money from one (1) fund of a political subdivision for a use authorized by the cooperative agreement.

    Sec. 7. (a) A cooperative agreement transferring the functions of an elected office becomes effective only at the end of the term of the incumbent that holds the office.
    (b) Any law, rule, or agreement that requires or permits an action by an employee or elected officer after the functions of the employee or elected officer are transferred shall be treated as referring to the employee or elected officer to which the functions have been transferred by the cooperative agreement.
    Sec. 8. The department of local government finance shall adjust as necessary tax rates, tax levies, and budgets of political subdivisions that enter into a cooperative agreement under this


chapter in the same manner as tax rates, tax levies, and budgets are adjusted under IC 36-1.5-3 for reorganizing political subdivisions.".
    (Reference is to HB 1362 as reprinted January 24, 2006.)

and when so amended that said bill do pass.

Committee Vote: Yeas 6, Nays 5.

____________________________________

    Riegsecker
Chairperson


CR136202/DI 87    2006