Reprinted

February 24, 2007





HOUSE BILL No. 1480

_____


DIGEST OF HB 1480 (Updated February 23, 2007 2:26 pm - DI 107)



Citations Affected: IC 33-37; IC 33-38; noncode.

Synopsis: Judges' pensions. Allows a participant in the 1985 judges' retirement system to elect to make additional contributions after 22 years. Requires the pension management oversight commission to identify a way to harmonize the benefit structures of the 1977 and 1985 judges retirement systems. Allows service credit accrued by a full-time referee, full-time commissioner, or full-time magistrate after leaving an elected term on the bench to be granted to a participating judge in the 1977 judges' retirement system if certain conditions are met. Requires that the portion of the judicial salaries fee retained by cities and towns to be used to fund the operation of city and town courts.

Effective: July 1, 2007.





Kuzman , Buell




    January 23, 2007, read first time and referred to Committee on Ways and Means.
    January 26, 2007, reassigned to Committee on Rules and Legislative Procedures.
    February 15, 2007, reassigned to Committee on Ways and Means.
    February 20, 2007, amended, reported _ Do Pass.
    February 23, 2007, read second time, amended, ordered engrossed.






Reprinted

February 24, 2007

First Regular Session 115th General Assembly (2007)


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 2006 Regular Session of the General Assembly.

HOUSE BILL No. 1480



    A BILL FOR AN ACT to amend the Indiana Code concerning courts and court officers.

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

SOURCE: IC 33-37-7-8; (07)HB1480.2.1. -->     SECTION 1. IC 33-37-7-8, AS AMENDED BY P.L.174-2006, SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 8. (a) The clerk of a city or town court shall distribute semiannually to the auditor of state as the state share for deposit in the state general fund fifty-five percent (55%) of the amount of fees collected under the following:
        (1) IC 33-37-4-1(a) (criminal costs fees).
        (2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-37-4-4(a) (civil costs fees).
        (4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
        (5) IC 33-37-5-17 (deferred prosecution fees).
    (b) The city or town fiscal officer shall distribute monthly to the county auditor as the county share twenty percent (20%) of the amount of fees collected under the following:
        (1) IC 33-37-4-1(a) (criminal costs fees).
        (2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-37-4-4(a) (civil costs fees).
        (4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
        (5) IC 33-37-5-17 (deferred prosecution fees).
    (c) The city or town fiscal officer shall retain twenty-five percent (25%) as the city or town share of the fees collected under the following:
        (1) IC 33-37-4-1(a) (criminal costs fees).
        (2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-37-4-4(a) (civil costs fees).
        (4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
        (5) IC 33-37-5-17 (deferred prosecution fees).
    (d) The clerk of a city or town court shall distribute semiannually to the auditor of state for deposit in the state user fee fund established in IC 33-37-9 the following:
        (1) Twenty-five percent (25%) of the drug abuse, prosecution, interdiction, and corrections correction fees collected under IC 33-37-4-1(b)(5).
        (2) Twenty-five percent (25%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
        (3) One hundred percent (100%) of the highway work zone fees collected under IC 33-37-4-1(b)(9) and IC 33-37-4-2(b)(5).
        (4) One hundred percent (100%) of the safe schools fee collected under IC 33-37-5-18.
        (5) One hundred percent (100%) of the automated record keeping fee (IC 33-37-5-21).
    (e) The clerk of a city or town court shall distribute monthly to the county auditor the following:
        (1) Seventy-five percent (75%) of the drug abuse, prosecution, interdiction, and corrections fees collected under IC 33-37-4-1(b)(5).
        (2) Seventy-five percent (75%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this subsection into the county drug free community fund established under IC 5-2-11.
    (f) The clerk of a city or town court shall distribute monthly to the city or town fiscal officer (as defined in IC 36-1-2-7) one hundred percent (100%) of the following:
        (1) The late payment fees collected under IC 33-37-5-22.
        (2) The small claims service fee collected under IC 33-37-4-6(a)(1)(B) or IC 33-37-4-6(a)(2).
        (3) The small claims garnishee service fee collected under IC 33-37-4-6(a)(1)(C) or IC 33-37-4-6(a)(3).
The city or town fiscal officer (as defined in IC 36-1-2-7) shall deposit fees distributed by a clerk under this subsection in the city or town general fund.
    (g) The clerk of a city or town court shall semiannually distribute to the auditor of state for deposit in the state general fund one hundred percent (100%) of the following:
        (1) The public defense administration fee collected under IC 33-37-5-21.2.
        (2) The DNA sample processing fees collected under IC 33-37-5-26.2.
        (3) The court administration fees collected under IC 33-37-5-27.
    (h) The clerk of a city or town court shall semiannually distribute to the auditor of state for deposit in the judicial branch insurance adjustment account established by IC 33-38-5-8.2 one hundred percent (100%) of the judicial insurance adjustment fee collected under IC 33-37-5-25.
    (i) The clerk of a city or town court shall semiannually distribute to the auditor of state for deposit in the state general fund seventy-five percent (75%) of the judicial salaries fee collected under IC 33-37-5-26. The city or town fiscal officer shall retain twenty-five percent (25%) of the judicial salaries fee collected under IC 33-37-5-26 as the city or town share. to fund the operation of the city or town court.
SOURCE: IC 33-38-7-18; (07)HB1480.2.2. -->     SECTION 2. IC 33-38-7-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 18. (a) This section applies to a person who:
        (1) is a judge participating under this chapter;
        (2) before becoming a judge was appointed by a court to serve as a full-time referee, full-time commissioner, or full-time magistrate either:
            (A) before becoming a judge; or
            (B) after leaving an elected term on the bench;

        (3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
        (4) received credited service under the public employees' retirement fund for the employment described in subdivision (2).
    (b) If a person becomes a participant in the judges' 1977 benefit

system under section 1 of this chapter, credit for prior or subsequent service by the judge as a full-time referee, full-time commissioner, or full-time magistrate shall be granted under this chapter by the board if:
        (1) the prior service was credited under the public employees' retirement fund;
        (2) the state contributes to the judges' 1977 benefit system the amount the board determines necessary to amortize the prior service liability over a period determined by the board, but not more than ten (10) years; and
        (3) the judge pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount the judge would have contributed if the judge had been a member of the judges' 1977 benefit system during the prior service.
    (c) If the requirements of subsection (b)(2) and (b)(3) are not satisfied, a participant is entitled to credit only for years of service after the date of participation in the 1977 benefit system.
    (d) An amortization schedule for contributions paid under subsection (b)(2) or (b)(3) must include interest at a rate determined by the board.
    (e) The following provisions apply to a person described in subsection (a):
        (1) A minimum benefit applies to participants receiving credit in the judges' 1977 benefit system from service covered by the public employees' retirement fund. The minimum benefit is payable at sixty-five (65) years of age and equals the actuarial equivalent of the vested retirement benefit that is:
            (A) payable to the member at normal retirement under IC 5-10.2-4-1 as of the day before the transfer; and
            (B) based solely on:
                (i) creditable service;
                (ii) the average of the annual compensation; and
                (iii) the amount credited under IC 5-10.2 and IC 5-10.3 to the annuity savings account of the transferring member as of the day before the transfer.
        (2) If the requirements of subsection (b)(2) and (b)(3) are satisfied, the board shall transfer from the public employees' retirement fund to the judges' 1977 benefit system the amount credited to the annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age that is attributable to the transferring participant.
        (3) The amount the state and the participant must contribute to the

judges' 1977 benefit system under subsection (b) shall be reduced by the amount transferred to the judges' 1977 benefit system by the board under subdivision (2).
        (4) If the requirements of subsection (b)(2) and (b)(3) are satisfied, credit for prior service in the public employees' retirement fund as a full-time referee, full-time commissioner, or full-time magistrate is waived. Any credit for the prior service under the judges' 1977 benefit system may be granted only under subsection (b).
        (5) Credit for prior service in the public employees' retirement fund for service other than as a full-time referee, full-time commissioner, or full-time magistrate remains under the public employees' retirement fund and may not be credited under the judges' 1977 benefit system.
    (f) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1977 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) An eligible plan that is maintained by a state, political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (g) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1977 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

SOURCE: IC 33-38-8-11; (07)HB1480.2.3. -->     SECTION 3. IC 33-38-8-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 11. (a) A participant shall make contributions to this fund of six percent (6%) of each payment of salary received for services as judge. However, the

employer may elect to pay the contribution for the participant as a pickup under Section 414(h) of the Internal Revenue Code.
    (b) Participants' contributions, other than participants' contributions paid by the employer, shall be deducted from the monthly salary of each participant by the auditor of state and by the county auditor and credited to the fund as provided in IC 33-38-6-21 and IC 33-38-6-22. However, a contribution is not required:
        (1) because of any salary received after the participant has contributed to the fund for twenty-two (22) years; or
        (2) during any period that the participant is not serving as judge.
     (c) A participant may elect to make additional contributions after twenty-two (22) years.

SOURCE: ; (07)HB1480.2.4. -->     SECTION 4. [EFFECTIVE JULY 1, 2007] (a) The pension management oversight commission shall identify a way to harmonize the benefit structures of:
        (1) the judges' 1977 retirement, disability, and death benefit system established under IC 33-38-7; and

         (2) the judges' 1985 retirement, disability, and death benefit system established under IC 33-38-8.
    (b) This SECTION expires November 1, 2008.