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:
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.