SB 480-1_ Filed 04/27/2007, 13:26
Adopted 4/27/2007
CONFERENCE COMMITTEE REPORT
DIGEST FOR ESB 480
Citations Affected: IC 6-3-2-4; IC 10-17; IC 20-20-7-3; IC 20-28-2-6; IC 21-13-5; IC 21-14-9;
IC 25-1-11-21.
Synopsis: Military and veterans' affairs. Exempts active duty military pay earned by members
of the national guard and reserve components of the United States armed forces from the
individual income tax. Increases the military pay income tax deduction from $2,000 to $5,000.
Provides that a taxpayer may not claim both the new exemption and the existing deduction for
military income. Establishes employment criteria for employees of the Indiana department of
veterans' affairs (department) and local service officers. Provides for reimbursement of certain
expenses of medal of honor recipients. Provides that a power of attorney for prosecution of
veterans' benefits runs to an agency or individual authorized by the department. Establishes the
veterans' affairs trust fund and the military and veterans' benefits board (board). Provides that the
board (rather than the veterans' affairs commission) administers the military family relief fund.
Expands the high school diploma program for eligible veterans to include veterans of the Korean
and Vietnam conflicts. Establishes the National Guard scholarship extension fund (fund) to
certain former National Guard members. Requires the state student assistance commission to
transfer on June 30, 2007, the National Guard scholarship program reserves to the fund. Specifies
that active duty military personnel stationed in Indiana and their dependents are eligible for
resident tuition rates at state educational institutions. Authorizes the: (1) advisory board of the
division of professional standards of the department of education; and (2) various professional
licensing boards; to adopt rules to expedite the licensure of individuals whose spouses are
stationed on active duty in Indiana. (This conference committee report: (1) removes the
provision granting service credit in the teachers' retirement fund for certain military
service; (2) amends the definition of "qualified military income"; (3) removes the eight year
phase-in of the deduction of all military income; (4) increases the military pay income tax
deduction from $2,000 to $5,000; (5) provides for reimbursement of certain expenses of
medal of honor recipients; (6) establishes the veterans' affairs trust fund and the military
and veterans' benefits board and provides that the board administers the fund; (7) provides
that the board (rather than the veterans' affairs commission) administers the military
family relief fund; (8) removes certain provisions concerning tuition assistance at state
educational institutions for certain active duty military personnel and their dependents and
certain veterans; (9) removes provisions concerning the eligibility of veterans and children
of veterans for freedom of choice grants; (10) establishes the National Guard scholarship
extension fund to provide tuition assistance to certain former National Guard members;
and (11) removes various appropriations.)
Effective: Upon passage; July 1, 2007; January 1, 2008.
Text Box
Adopted Rejected
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CONFERENCE COMMITTEE REPORT
MR. SPEAKER:
Your Conference Committee appointed to confer with a like committee from the Senate
upon Engrossed House Amendments to Engrossed Senate Bill No. 480 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the Senate recede from its dissent from all House amendments and that
the Senate now concur in all House amendments to the bill and that the bill
be further amended as follows:
Delete everything after the enacting clause and insert the following:
SOURCE: IC 6-3-1-2.5; (07)CC048005.1. -->
SECTION 1. IC 6-3-1-2.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 2.5. "Armed forces of the United States"
has the meaning set forth in IC 5-9-4-3.
SOURCE: IC 6-3-1-2.7; (07)CC048005.2. -->
SECTION 2. IC 6-3-1-2.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 2.7. "National Guard" has the meaning
set forth in IC 5-9-4-4.
SOURCE: IC 6-3-1-3.5; (07)CC048005.3. -->
SECTION 3. IC 6-3-1-3.5, AS AMENDED BY P.L.184-2006,
SECTION 3, AND AS AMENDED BY P.L.162-2006, SECTION 24,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2008]: Sec. 3.5. When used in this article,
the term "adjusted gross income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 62 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each spouse
one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the
Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) for taxable years beginning after December 31, 2004, one
thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the Internal
Revenue Code for taxable years beginning after December 31,
1996 (as effective January 1, 2004); and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue Code
if the adjusted gross income of the taxpayer, or the taxpayer
and the taxpayer's spouse in the case of a joint return, is less
than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on or
measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible under
subdivision (1).
(10) Add an amount equal to the deduction allowed under Section
221 of the Internal Revenue Code for married couples filing joint
returns if the taxable year began before January 1, 1987.
(11) Add an amount equal to the interest excluded from federal
gross income by the individual for the taxable year under Section
128 of the Internal Revenue Code if the taxable year began before
January 1, 1985.
(12) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a taxpayer's
federal gross income by Section 86 of the Internal Revenue Code.
(13) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed pursuant
to subdivisions (3), (4), (5), and (6) shall be reduced to an amount
which bears the same ratio to the total as the taxpayer's income
taxable in Indiana bears to the taxpayer's total income.
(14) In the case of an individual who is a recipient of assistance
under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
subtract an amount equal to that portion of the individual's
adjusted gross income with respect to which the individual is not
allowed under federal law to retain an amount to pay state and
local income taxes.
(15) In the case of an eligible individual, subtract the amount of
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(16) For taxable years beginning after December 31, 1999,
subtract an amount equal to the portion of any premiums paid
during the taxable year by the taxpayer for a qualified long term
care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the
taxpayer's spouse, or both.
(17) Subtract an amount equal to the lesser of:
(A) for a taxable year:
(i) including any part of 2004, the amount determined under
subsection (f); and
(ii) beginning after December 31, 2004, two thousand five
hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(18) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the individual's
federal adjusted gross income.
(19) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(20) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(21) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(22) Add an amount equal to the amount that a taxpayer claimed
as a deduction for domestic production activities for the taxable
year under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(23) Subtract an amount equal to the amount of the taxpayer's
qualified military income that was not excluded from the
taxpayer's gross income for federal income tax purposes
under Section 112 of the Internal Revenue Code.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(9) Add to the extent required by IC 6-3-2-20 the amount of
intangible expenses (as defined in IC 6-3-2-20) and any directly
related intangible interest expenses (as defined in IC 6-3-2-20)
for the taxable year that reduced the corporation's taxable
income (as defined in Section 63 of the Internal Revenue Code)
for federal income tax purposes.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 or Section 810 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(d) In the case of insurance companies subject to tax under Section
831 of the Internal Revenue Code and organized under Indiana law, the
same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(8) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(e) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a victim
of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k) of the Internal Revenue Code to apply bonus
depreciation to the property in the year that it was placed in
service.
(4) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that placed Section 179 property (as
defined in Section 179 of the Internal Revenue Code) in service
in the current taxable year or in an earlier taxable year equal to
the amount of adjusted gross income that would have been
computed had an election for federal income tax purposes not
been made for the year in which the property was placed in
service to take deductions under Section 179 of the Internal
Revenue Code in a total amount exceeding twenty-five thousand
dollars ($25,000).
(6) Add an amount equal to the amount that a taxpayer claimed as
a deduction for domestic production activities for the taxable year
under Section 199 of the Internal Revenue Code for federal
income tax purposes.
(f) This subsection applies only to the extent that an individual paid
property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal
to the amount determined under STEP FIVE of the following formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two
thousand five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP FOUR amount and
two thousand five hundred dollars ($2,500).
SOURCE: IC 6-3-1-34; (07)CC048005.4. -->
SECTION 4. IC 6-3-1-34 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 34. "Qualified military income" means
wages that are paid:
(1) to a member of:
(A) a reserve component of the armed forces of the United
States; or
(B) the National Guard; and
(2) for any of the following applicable periods, or any
combination of the following applicable periods, in a calendar
year:
(A) The member's full-time service on involuntary orders
in:
(i) a reserve component of the armed forces of the United
States; or
(ii) the National Guard.
(B) The period during which the member is mobilized and
deployed for full-time service in:
(i) a reserve component of the armed forces of the United
States; or
(ii) the National Guard.
(C) The period during which the member's National Guard
unit is federalized.
SOURCE: IC 6-3-2-4; (07)CC048005.5. -->
SECTION 5. IC 6-3-2-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2008]: Sec. 4. (a) Each taxable year, an
individual, or the individual's surviving spouse, is entitled to an
adjusted gross income tax deduction for the first two five thousand
dollars ($2,000) ($5,000) of income, including retirement or survivor's
benefits, received during the taxable year by the individual, or the
individual's surviving spouse, for the individual's service in an active
or reserve component of the armed forces of the United States,
including the army, navy, air force, coast guard, marine corps,
merchant marine, Indiana army national guard, or Indiana air national
guard. However, a person who is less than sixty (60) years of age on the
last day of the person's taxable year, is not, for that taxable year,
entitled to a deduction under this section for retirement or survivor's
benefits.
(b) An individual whose qualified military income is subtracted
from the individual's federal adjusted gross income under
IC 6-3-1-3.5(a)(23) for Indiana individual income tax purposes is
not, for that taxable year, entitled to a deduction under this section
for the individual's qualified military income.
SOURCE: IC 10-17-1-5; (07)CC048005.6. -->
SECTION 6. IC 10-17-1-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 5. (a) The position of
director of veterans' affairs is established. The governor shall appoint
the director for a four (4) year term. However, the term of office of the
director terminates when the term of office of the governor terminates
or when a successor to the director is appointed and qualified. The
director must be:
(1) an honorably discharged veteran who has at least six (6)
months active service in the armed forces of the United States;
and
(2) a citizen of Indiana and a resident of Indiana for at least five
(5) years immediately preceding the director's appointment.
(b) The director is entitled to reimbursement for necessary traveling
and other expenses.
(c) The governor may remove the director if the governor considers
the director guilty of misconduct, incapability, or neglect of duty.
(d) The governor shall appoint an assistant director of veterans'
affairs. The assistant director is entitled to receive reimbursement for
necessary traveling and other expenses. The assistant director has the
same qualifications as the director of veterans' affairs and shall assist
the director in carrying out this chapter.
SOURCE: IC 10-17-1-6; (07)CC048005.7. -->
SECTION 7. IC 10-17-1-6, AS AMENDED BY P.L.58-2006,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 6. (a) The director of veterans' affairs:
(1) is the executive and administrative head of the Indiana
department of veterans' affairs; and
(2) shall direct and supervise the administrative and technical
activities of the department;
subject to the general supervision of the commission.
(b) The duties of the director include the following:
(1) To attend all meetings of the commission and to act as
secretary and keep minutes of the commission's proceedings.
(2) To appoint, by and with the consent of the commission, under
this chapter and notwithstanding IC 4-15-2, the employees of the
department necessary to carry out this chapter and to fix the
compensation of the employees. Employees of the department
must be:
(A) honorably discharged veterans who have had at least six
(6) months service in the armed forces of the United States and
who are citizens of the United States and Indiana; or
(B) spouses, surviving spouses, parents, or children of an
individual described in clause (A).
An employee must qualify for the job concerned.
(3) To carry out the program for veterans' affairs as directed by
the governor and the commission.
(4) To carry on field direction, inspection, and coordination of
county and city service officers as provided in this chapter.
(5) To prepare and conduct service officer training schools with
the voluntary aid and assistance of the service staffs of the major
veterans' organizations.
(6) To maintain an information bulletin service to county and city
service officers for the necessary dissemination of material
pertaining to all phases of veterans' rehabilitation and service
work.
(7) To perform the duties described in IC 10-17-11 for the Indiana
state veterans' cemetery.
(8) To perform the duties described in IC 10-17-12 for the
military family relief fund.
(9) To establish a program and set guidelines under which a
medal of honor awardee may receive compensation when
attending and participating in official ceremonies.
SOURCE: IC 10-17-1-7; (07)CC048005.8. -->
SECTION 8. IC 10-17-1-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. The director of
veterans' affairs may act as agent of a veteran under (a) A power of
attorney authorizing the director to act action on behalf of the a veteran
in obtaining a benefit or an advantage for a veteran provided under
Indiana law must run to an authorized agency or individual
recognized by the United States Department of Veterans Affairs.
(b) A rule contrary to this section is void.
SOURCE: IC 10-17-1-9; (07)CC048005.9. -->
SECTION 9. IC 10-17-1-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 9. (a) A county
executive:
(1) shall designate and may employ a county service officer; and
(2) may employ service officer assistants;
to serve the veterans of the county.
(b) The fiscal body of a city may provide for the employment by the
mayor of a city service officer and service officer assistants to serve the
veterans of the city.
(c) If the remuneration and expenses of a county or city service
officer are paid from the funds of the county or city employing the
service officer, the service officer shall:
(1) have the same qualifications and be subject to the same rules
as other employees the director, assistant director, and state
service officers of the Indiana department of veterans' affairs;
and
(2) serve under the supervision of the director of veterans' affairs.
A service officer assistant must have the same qualifications as an
employee described in section 11(b) of this chapter. A rule contrary
to this subsection is void.
(d) County and city fiscal bodies may appropriate funds necessary
for the purposes described in this section.
SOURCE: IC 10-17-1-11; (07)CC048005.10. -->
SECTION 10. IC 10-17-1-11 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 11. (a) The following employees
of the Indiana department of veterans' affairs must satisfy the
requirements set forth in section 5(a) of this chapter:
(1) State service officers.
(2) Director of the state approving agency.
(3) Program directors of the state approving agency.
(4) Director of the Indiana state veterans' cemetery
established by IC 10-17-11-4.
(b) An employee of the Indiana department of veterans' affairs
not described in subsection (a) must:
(1) satisfy; or
(2) be the spouse, surviving spouse, parent, or child of a
person who satisfies;
the requirements set forth in section 5(a) of this chapter.
SOURCE: IC 10-17-12-3; (07)CC048005.11. -->
SECTION 11. IC 10-17-12-3, AS ADDED BY P.L.58-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 3. As used in this chapter, "commission" "board"
refers to the military and veterans' affairs commission benefits board
established by IC 10-17-1-3. IC 10-17-13-4.
SOURCE: IC 10-17-12-8; (07)CC048005.12. -->
SECTION 12. IC 10-17-12-8, AS ADDED BY P.L.58-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 8. (a) The military family relief fund is established
beginning January 1, 2007, to provide assistance with food, housing,
utilities, medical services, basic transportation, and other essential
family support expenses that have become difficult to afford for
families of Indiana residents who are:
(1) members of:
(A) a reserve component of the armed forces; or
(B) the national guard; and
(2) called to active duty after September 11, 2001.
(b) The
department board shall expend the money in the fund
exclusively to provide grants for assistance as described in subsection
(a).
(c) The director board shall administer the fund.
SOURCE: IC 10-17-12-9; (07)CC048005.13. -->
SECTION 13. IC 10-17-12-9, AS ADDED BY P.L.58-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 9. (a) The fund consists of the following:
(1) Appropriations made by the general assembly.
(2) Donations to the fund.
(3) Interest as provided in subsection (b).
(4) Money transferred to the fund from other funds.
(5) Annual supplemental fees collected under IC 9-29-5-38.5.
(6) Money from any other source authorized or appropriated for
the fund.
(b) The treasurer of state shall invest the 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.
(c) Money in the fund at the end of a state fiscal year does not revert
to the state general fund or to any other fund.
(d) There is annually appropriated to the department board for the
purposes of this chapter all money in the fund not otherwise
appropriated to the department board for the purposes of this chapter.
SOURCE: IC 10-17-12-10; (07)CC048005.14. -->
SECTION 14. IC 10-17-12-10, AS ADDED BY P.L.58-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 10. The commission board may adopt rules under
IC 4-22-2 for the provision of grants under this chapter. The rules
adopted under this section must address the following:
(1) Uniform need determination procedures.
(2) Eligibility criteria.
(3) Application procedures.
(4) Selection procedures.
(5) Coordination with other assistance programs.
(6) Other areas in which the department determines that rules are
necessary to ensure the uniform administration of the grant
program under this chapter.
SOURCE: IC 10-17-12-11; (07)CC048005.15. -->
SECTION 15. IC 10-17-12-11, AS ADDED BY P.L.58-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 11. The director or a member of the commission
board may make a request to the general assembly for an appropriation
to the fund.
SOURCE: IC 10-17-13; (07)CC048005.16. -->
SECTION 16. IC 10-17-13 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 13. Veterans' Affairs Trust Fund
Sec. 1. As used in this chapter, "board" refers to the military
and veterans' benefits board established by section 4 of this
chapter.
Sec. 2. As used in this chapter, "fund" refers to the veterans'
affairs trust fund established by section 3 of this chapter.
Sec. 3. (a) The veterans' affairs trust fund is established to
provide assistance to veterans and their families.
(b) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Donations, gifts, grants, and bequests to the fund.
(3) Interest and dividends on assets of the funds.
(4) Money transferred to the fund from other funds.
(5) Money from any other source deposited in the fund.
Sec. 4. The military and veterans' benefits board is established.
Sec. 5. The board consists of the following members:
(1) Seven (7) members appointed by the governor. The
governor shall consider the following when making
appointments under this subdivision:
(A) Membership in:
(i) a veterans association established under IC 10-18-6;
or
(ii) a veterans organization listed in IC 10-18-8-1.
(B) Service in the armed forces of the United States (as
defined in IC 5-9-4-3) or the national guard (as defined in
IC 5-9-4-4).
(C) Experience in education, including higher education,
vocational education, or adult education.
(D) Experience in investment banking or finance.
The governor shall designate one (1) member appointed under
this subdivision to serve as chairperson of the board.
(2) The director of veterans' affairs appointed under
IC 10-17-1-5 or the director's designee.
(3) The adjutant general of the military department of the
state appointed under IC 10-16-2-6 or the adjutant general's
designee.
(4) Four (4) members of the general assembly appointed as
follows:
(A) Two (2) members of the senate, one (1) from each
political party, appointed by the president pro tempore of
the senate with advice from the minority leader of the
senate.
(B) Two (2) members of the house of representatives, one
(1) from each political party, appointed by the speaker of
the house of representatives with advice from the minority
leader of the house of representatives.
Members appointed under this subdivision are nonvoting,
advisory members and must serve on a standing committee of
the senate or house of representatives that has subject matter
jurisdiction over military and veterans affairs.
Sec. 6. The board shall meet at least quarterly at the call of the
chairperson of the board.
Sec. 7. Five (5) voting members of the board constitute a
quorum. The affirmative vote of five (5) members of the board is
necessary for the board to take action.
Sec. 8. (a) The term of a board member begins on the later of
the following:
(1) The day the term of the member whom the individual is
appointed to succeed expires.
(2) The day the member is appointed.
(b) The term of a member expires on the later of the following:
(1) The day a successor is appointed.
(2) July 1 of the year following the year in which the member
is appointed.
However, a member serves at the pleasure of the appointing
authority.
(c) An appointing authority may reappoint a member for a new
term.
(d) An appointing authority shall appoint an individual to fill a
vacancy on the board.
Sec. 9. (a) Each member of the board who is not a state
employee is entitled to the minimum salary per diem provided by
IC 4-10-11-2.1(b). The member is also entitled to reimbursement
for traveling expenses as provided under IC 4-13-1-4 and other
expenses actually incurred in connection with the member's duties
as provided in the state policies and procedures established by the
Indiana department of administration and approved by the budget
agency.
(b) Each member of the board who is a state employee but who
is not a member of the general assembly is entitled to
reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(c) Each member of the board who is a member of the general
assembly is entitled to receive the same per diem, mileage, and
travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem,
mileage, and travel allowances paid under this subsection shall be
paid from appropriations made to the legislative council or the
legislative services agency.
Sec. 10. (a) The board shall manage and develop the fund and
the assets of the fund.
(b) The board shall do the following:
(1) Establish a policy for the investment of the assets of the
fund. In establishing a policy under this subdivision, the board
shall:
(A) consider the immediate needs of veterans and their
families to the extent those needs are not addressed by the
military family relief fund established by IC 10-17-12-8;
and
(B) have as its long term goal creating a self sustaining
fund that is not dependent on legislative sources of
funding.
(2) Acquire money for the fund through the solicitation of
private or public donations and other revenue producing
activities.
(3) Perform other tasks consistent with prudent management
and development of the fund.
Sec. 11. (a) Subject to the investment policy of the board
established under section 10 of this chapter, the treasurer of state
shall administer the fund and invest the money in the fund.
(b) The expenses of administering the fund and this chapter
shall be paid from the fund.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public trust funds are invested. Interest that
accrues from these investments shall be deposited in the fund.
Sec. 12. Money in the fund at the end of a state fiscal year does
not revert to the state general fund or any other fund.
Sec. 13. Before October 1 of each year, the board shall report in
an electronic format under IC 5-14-6 to the general assembly
concerning the fund.
Sec. 14. The board shall adopt rules under IC 4-22-2 to do the
following:
(1) Establish or designate programs, including existing
programs administered by state agencies for the benefit of
active duty military personnel, veterans, and their families, to
be funded by the fund. The board shall consider the following
needs of veterans and their families in establishing programs
under this subdivision:
(A) Education.
(B) Economic assistance, including grants and loans.
(C) Health and medical care.
(D) Housing and transportation needs.
(E) Employment and workforce issues.
(F) Any other issue the board determines is appropriate.
(2) Determine eligibility and application procedures for
programs described in subdivision (1).
(3) Otherwise implement this chapter.
SOURCE: IC 20-20-7-3; (07)CC048005.17. -->
SECTION 17. IC 20-20-7-3, AS ADDED BY P.L.1-2005,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 3. As used in this chapter, "eligible veteran" refers
to an individual who has the following qualifications:
(1) Served as a member of the armed forces of the United States
at any time during at least one (1) of the following periods:
(A) Beginning April 6, 1917, and ending November 11, 1918
(World War I).
(B) Beginning December 7, 1941, and ending December 31,
1946 (World War II).
(C) Beginning June 27, 1950, and ending January 31, 1955
(Korean Conflict).
(D) Beginning August 5, 1964, and ending May 7, 1975
(Vietnam Conflict).
(2) Before the military service described in subdivision (1):
(A) attended a public or nonpublic high school in Indiana; and
(B) was a student in good standing at the high school
described in clause (A), to the satisfaction of the department
of veterans' affairs.
(3) Did not graduate or receive a diploma because of leaving the
high school described in subdivision (2) for the military service
described in subdivision (1).
(4) Was honorably discharged from the armed forces of the
United States.
SOURCE: IC 20-28-2-6; (07)CC048005.18. -->
SECTION 18. IC 20-28-2-6, AS AMENDED BY SEA 526-2007,
SECTION 203, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 6. (a) Subject to subsection (c) and
in addition to the powers and duties set forth in IC 20-20-22 or this
article, the advisory board may adopt rules under IC 4-22-2 to do the
following:
(1) Set standards for teacher licensing and for the administration
of a professional licensing and certification process by the
department.
(2) Approve or disapprove teacher preparation programs.
(3) Set fees to be charged in connection with teacher licensing.
(4) Suspend, revoke, or reinstate teacher licenses.
(5) Enter into agreements with other states to acquire reciprocal
approval of teacher preparation programs.
(6) Set standards for teacher licensing concerning new subjects of
study.
(7) Evaluate work experience and military service concerning
postsecondary education and experience equivalency.
(8) Perform any other action that:
(A) relates to the improvement of instruction in the public
schools through teacher education and professional
development through continuing education; and
(B) attracts qualified candidates for teacher education from
among the high school graduates of Indiana.
(9) Set standards for endorsement of school psychologists as
independent practice school psychologists under IC 20-28-12.
(b) Notwithstanding subsection (a)(1), an individual is entitled to
one (1) year of occupational experience for purposes of obtaining an
occupational specialist certificate under this article for each year the
individual holds a license under IC 25-8-6.
(c) Before publishing notice of the intent to adopt a rule under
IC 4-22-2, the advisory board must submit the proposed rule to the
state superintendent for approval. If the state superintendent approves
the rule, the advisory board may publish notice of the intent to adopt
the rule. If the state superintendent does not approve the rule, the
advisory board may not publish notice of the intent to adopt the rule.
(d) The advisory board may adopt rules under IC 4-22-2,
including emergency rules under IC 4-22-2-37.1, to establish
procedures to expedite the issuance, renewal, or reinstatement
under this article of a license or certificate of a person whose
spouse serves on active duty (as defined in IC 25-1-12-2) and is
assigned to a duty station in Indiana. Before publishing notice of
the intent to adopt a permanent rule under IC 4-22-2, the advisory
board must comply with subsection (c).
SOURCE: IC 21-13-1-5; (07)CC048005.19. -->
SECTION 19. IC 21-13-1-5, AS ADDED BY SEA 526-2007,
SECTION 254, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 5. "Fund":
(1) for purposes of IC 21-13-2, refers to the minority teacher or
special education services scholarship fund established by
IC 21-13-2-1;
(2) for purposes of IC 21-13-3, refers to the nursing scholarship
fund established by IC 21-13-3-1; and
(3) for purposes of IC 21-13-4, refers to the National Guard
tuition supplement program fund established by IC 21-13-4-1;
and
(4) for purposes of IC 21-13-5, refers to the National Guard
scholarship extension fund established by IC 21-13-5-1.
SOURCE: IC 21-13-1-9; (07)CC048005.20. -->
SECTION 20. IC 21-13-1-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. "Scholarship extension applicant", for
purposes of IC 21-13-5, means a person who:
(1) is a former member of the Indiana National Guard who
was called to active duty at least one (1) time while a member
of the Indiana National Guard;
(2) was a scholarship applicant when the person was called to
active duty;
(3) is a resident of Indiana;
(4) has been accepted to attend a state educational institution
as a full-time or part-time student; and
(5) according to commission requirements, has timely filed an
application for any federal and state financial assistance
available to the person to attend a state educational
institution.
SOURCE: IC 21-13-5; (07)CC048005.21. -->
SECTION 21. IC 21-13-5 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 5. National Guard Scholarship Extension Program
Sec. 1. (a) The National Guard scholarship extension fund is
established to provide the financial resources necessary to award
tuition scholarships to scholarship extension applicants.
(b) The commission shall administer the fund. The expenses of
administering the fund shall be paid from money in the fund.
(c) The fund consists of money transferred to the fund from the
National Guard scholarship program reserves.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 2. Money in the National Guard scholarship extension fund
shall be used to provide annual scholarships to scholarship
extension applicants in an amount determined by the commission.
Sec. 3. A scholarship extension applicant shall apply for a
tuition scholarship under this chapter not later than one (1) year
after the scholarship extension applicant ceases to be a member of
the National Guard.
Sec. 4. A scholarship extension applicant is eligible for a tuition
scholarship under this chapter for a period not to exceed the period
the scholarship extension applicant served on active duty as a
member of the National Guard.
Sec. 5. The commission shall adopt rules under IC 4-22-2 to
implement this chapter.
SOURCE: IC 21-14-1-2.3; (07)CC048005.22. -->
SECTION 22. IC 21-14-1-2.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 2.3. For purposes of IC 21-14-9,
"active duty" means full-time service in the armed forces of the
United States that exceeds thirty (30) days in a calendar year.
SOURCE: IC 21-14-1-2.7; (07)CC048005.23. -->
SECTION 23. IC 21-14-1-2.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 2.7. For purposes of IC 21-14-9,
"armed forces of the United States" means the following:
(1) The United States Air Force.
(2) The United States Army.
(3) The United States Coast Guard.
(4) The United States Marine Corps.
(5) The United States Navy.
SOURCE: IC 21-14-9; (07)CC048005.24. -->
SECTION 24. IC 21-14-9 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]:
Chapter 9. Resident Tuition for Active Duty Military Personnel
Sec. 1. Notwithstanding any other statute, a person who:
(1) is a nonresident of Indiana;
(2) serves on active duty;
(3) is stationed in Indiana; and
(4) attends a state educational institution;
is eligible to pay the resident tuition rate determined by the state
educational institution for courses taken by the person while the
person continues to satisfy the criteria set forth in subdivisions (2)
and (3).
Sec. 2. A dependent of a person described in section 1 of this
chapter is eligible to pay the resident tuition rate determined by the
state educational institution for courses taken by the dependent for
the duration of the dependent's enrollment at the state educational
institution.
SOURCE: IC 25-1-9-20; (07)CC048005.25. -->
SECTION 25. IC 25-1-9-20 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2007]: Sec. 20. The board may adopt rules under IC 4-22-2,
including emergency rules under IC 4-22-2-37.1, to establish
procedures to expedite the issuance or renewal of a:
(1) license;
(2) certificate;
(3) registration; or
(4) permit;
of a person whose spouse serves on active duty (as defined in
IC 25-1-12-2) and is assigned to a duty station in Indiana.
SOURCE: IC 25-1-11-21; (07)CC048005.26. -->
SECTION 26. IC 25-1-11-21 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 21. The board may adopt rules
under IC 4-22-2, including emergency rules under IC 4-22-2-37.1,
to establish procedures to expedite the issuance or renewal of a:
(1) license;
(2) certificate;
(3) registration; or
(4) permit;
of a person whose spouse serves on active duty (as defined in
IC 25-1-12-2) and is assigned to a duty station in Indiana.
SOURCE: ; (07)CC048005.27. -->
SECTION 27. [EFFECTIVE JULY 1, 2007] IC 6-3-1-3.5 and
IC 6-3-2-4, both as amended by this act, apply to taxable years
beginning after December 31, 2007.
SOURCE: ; (07)CC048005.28. -->
SECTION 28. [EFFECTIVE JULY 1, 2007] IC 10-17-1-5 and
IC 10-17-1-9, both as amended by this act, and IC 10-17-1-11, as
added by this act, apply to employees who begin employment with:
(1) the Indiana department of veterans' affairs; or
(2) a county or a city under IC 10-17-1-9, as amended by this
act;
as applicable, after June 30, 2007.
SOURCE: ; (07)CC048005.29. -->
SECTION 29. [EFFECTIVE JULY 1, 2007] (a) Notwithstanding
the amendment of IC 10-17-12-10 by this act, rules adopted by the
veterans' affairs commission under IC 4-22-2 and IC 10-17-12-10,
before its amendment by this act, for the provision of grants under
IC 10-17-12 shall remain in effect until the later of:
(1) the date on which the military and veterans' benefits
board established by IC 10-17-13-4, as added by this act,
adopts rules under IC 4-22-2 and IC 10-17-12-10, as amended
by this act; or
(2) July 1, 2008.
(b) This SECTION expires July 1, 2008.
SOURCE: ; (07)CC048005.30. -->
SECTION 30. [EFFECTIVE UPON PASSAGE] (a) For purposes
of IC 21-13-5, as added by this act, "fund" refers to the National
Guard scholarship extension fund established by IC 21-13-5-1.
(b) This SECTION expires July 1, 2007.
SOURCE: ; (07)CC048005.31. -->
SECTION 31. [EFFECTIVE UPON PASSAGE] (a) On June 30,
2007, the state student assistance commission shall transfer the
National Guard scholarship program reserves to the National
Guard scholarship extension fund established by IC 21-13-5-1, as
added by this act.
(b) This SECTION expires December 31, 2007.
SOURCE: ; (07)CC048005.32. -->
SECTION 32.
An emergency is declared for this act.
(Reference is to ESB 480 as reprinted April 10, 2007.)
Conference Committee Report
on
Engrossed Senate Bill 480
Text Box
S
igned by:
____________________________ ____________________________
Senator WyssRepresentative Reske
Chairperson
____________________________ ____________________________
Senator RogersRepresentative McClain
Senate Conferees House Conferees