SB 500-14_ Filed 04/05/2007, 07:28 Thompson


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 500 be amended to read as follows:

SOURCE: Page 1, line 1; (07)MO050018.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 4-10-20; (07)MO050018.1. -->     "SECTION 1. IC 4-10-20 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
    Chapter 20. State Combined Reserves Distribution
    Sec. 1. As used in this chapter, "fund" refers to the property tax elimination fund established under section 4 of this chapter.
    Sec. 2. As used in this chapter, "state combined reserves" means the sum of the balance in the following:
        (1) The counter-cyclical revenue and economic stabilization fund established under IC 4-10-18.
        (2) The Medicaid contingency and reserve account established under IC 4-12-1-15.5.
        (3) The tuition reserve and the state general fund reserve as determined by the budget agency under IC 4-12-1-12.
    Sec. 3. As used in this chapter, "state fiscal year" means a twelve (12) month period beginning on July 1 and ending on June 30 in the immediately following fiscal year.
    Sec. 4. The property tax elimination fund is established. The fund shall be administered by the treasurer of state. The fund consists of transfers made under section 9 of this chapter. The money in the fund may only be used for the following purposes:
        (1) To replace property taxes if a state constitutional

amendment to eliminate or repeal property taxes is ratified.
        (2) To augment the state combined reserves as provided in section 9 of this chapter.
    Sec. 5. The expenses of administering the fund shall be paid from money in the fund.
    Sec. 6. The treasurer of state shall invest money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.
    Sec. 7. Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 8. On June 30 of each state fiscal year, the budget agency shall determine a fraction (expressed as a percentage) for which:
        (1) the numerator is the balance of the state combined reserves; and
        (2) the denominator is the sum of the total revenue deposited in the state general fund and the property tax replacement fund for the state fiscal year.
The budget agency shall forward this percentage to the auditor.
    Sec. 9. If the percentage determined in section 8 of this chapter:
        (1) is greater than seven percent (7%), the auditor shall transfer an amount equal to the difference between the percentage determined in section 8 of this chapter and seven percent (7%) from the state combined reserves to the property tax elimination fund; and
        (2) is less than two percent (2%), the auditor shall transfer an amount equal to the difference between two percent (2%) and the percentage determined in section 8 of this chapter from the property tax elimination fund to the state combined reserves.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 500 as printed April 3, 2007.)

________________________________________

Representative Thompson


MO050018/DI 114     2007