Citations Affected: IC 2-5; IC 6-1.1; IC 8-22; IC 36-7.5; noncode.
January 15, 2013, read first time and referred to Committee on Public Policy.
February 14, 2013, amended, reported favorably _ Do Pass. Pursuant to Senate Rule
68(b), reassigned to Committee on Tax and Fiscal Policy.
February 21, 2013, amended, reported favorably _ Do Pass.
February 25, 2013, read second time, ordered engrossed. Engrossed.
February 26, 2013, read third time, passed. Yeas 50, nays 0.
Provides that beginning with property taxes first due and payable after December 31, 2013, the district may not impose a property tax levy for its general fund. Terminates on September 1, 2013, the term of each existing member serving on the board of the Gary airport authority (GAA). Provides that the governor's appointment to the GAA board serves as the president of the GAA board. Requires that each person appointed to the board must have knowledge of and at least five years professional work experience in aviation management at an executive level, regional economic development, or business or finance. Provides that an appointee to the GAA board may not have, or be affiliated with an entity that has a significant contractual or business relationship with the airport authority. Provides that the GAA board is responsible for contracting with a certified public accountant (CPA) to perform an annual audit of the GAA, subject to approval of the CPA by the state board of accounts. Provides that the state board of accounts may at any time conduct an audit of any phase of the operations of the GAA. Requires the GAA board to submit an annual report of the board's activities to the budget agency and the legislative council. Provides that indebtedness of an airport authority under a loan contract: (1) may be paid from an airport authority cumulative building fund; and (2) may not be paid from a general operating fund tax. Requires the northwest Indiana regional development authority to study the issues of: (1) whether the statistical profile of injuries annually sustained by the population of northwestern Indiana justifies the placement of one or more trauma centers in northwestern Indiana; and (2) the feasibility of developing an academic medical center in northwestern Indiana. Urges the legislative council to assign to an interim study committee the topic of the responsibility of local units for providing governmental services to the Indiana ports.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
estimated data determined appropriate by the federal Bureau of
Economic Analysis.
(b) Subject to subsection (c), For purposes of determining a civil
taxing unit's maximum permissible ad valorem property tax levy for an
ensuing calendar year, the civil taxing unit shall use the assessed value
growth quotient determined in the last STEP of the following STEPS:
STEP ONE: For each of the six (6) calendar years immediately
preceding the year in which a budget is adopted under
IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
nonfarm personal income for the calendar year by the Indiana
nonfarm personal income for the calendar year immediately
preceding that calendar year, rounding to the nearest
one-thousandth (0.001).
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6), rounding
to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
(c) This subsection applies only to civil taxing units in Lake County.
Notwithstanding any other provision, for property taxes first due and
payable after December 31, 2007, the assessed value growth quotient
used to determine a civil taxing unit's maximum permissible ad
valorem property tax levy under this chapter for a particular calendar
year is one (1) unless a tax rate of one percent (1%) will be in effect
under IC 6-3.5-1.1-26 or IC 6-3.5-6-32 in Lake County for that
calendar year.
ad valorem property tax levy for its general fund.
(c) Notwithstanding the deadlines specified in IC 6-1.1-17 or in
any other law concerning the adoption of budgets, tax rates, and
tax levies, the department of local government finance and the
proper officers of the city of Gary and the Gary Sanitary District
may adjust tax rates and tax levies as necessary to account for the
changes to maximum permissible ad valorem property tax levies
made by this section.
2013.
(i) Each person appointed by an appointing authority under
subsection (b) must have knowledge of and at least five (5) years
professional work experience in at least one (1) of the following:
(1) Aviation management at an executive level.
(2) Regional economic development.
(3) Business or finance.
(j) A person appointed by an appointing authority under
subsection (b) may not personally have, or be employed by or have
an ownership interest in an entity that has, a significant
contractual or business relationship with the airport authority.
(k) The board of an airport authority described in subsection (a)
shall contract with a certified public accountant for an annual
financial audit of the airport authority. The certified public
accountant may not be selected without review of the accountant's
proposal and approval of the accountant by the state board of
accounts. The certified public accountant may not have a
significant financial interest, as determined by the board of the
airport authority, in a project, facility, or service owned by, funded
by, or leased by or to the airport authority. The certified public
accountant shall present the annual financial audit not later than
four (4) months after the end of the airport authority's fiscal year.
The certified public accountant shall also perform a study and
evaluation of the airport authority's internal accounting controls
and shall express an opinion on the controls that were in effect
during the audit period. The board of the airport authority shall
pay the cost of the annual financial audit. In addition, the state
board of accounts may at any time conduct an audit of any phase
of the operations of the airport authority. The airport authority
shall pay the cost of any audit by the state board of accounts.
(l) The board of the airport authority shall, not later than four
(4) months after the end of the airport authority's fiscal year,
submit an annual report of the board's activities for the preceding
fiscal year to:
(1) the budget agency, for review by the budget committee;
and
(2) the legislative council.
An annual report submitted under this section to the legislative
council must be in an electronic format under IC 5-14-6. The
annual report must set forth a complete operating and financial
statement of the airport authority for the airport authority's
preceding fiscal year.
levied and in course of collection for the fiscal year in which the loans
are made. The loans must be authorized by ordinance and evidenced by
warrants in the form provided by the authorizing ordinance. The
warrants must state the total amount of the issue, the denomination of
the warrant, the time and place payable, the rate of interest, the funds
in anticipation of which they are issued and out of which they are
payable, and a reference to the ordinance authorizing them and the date
of its adoption. The ordinance authorizing temporary loans must
appropriate and pledge a sufficient amount of the current revenue in
anticipation of which they are issued and out of which they are payable.
The warrants evidencing the temporary loans must be executed, sold,
and delivered as are bonds of the authority.
(b) The board may negotiate terms and borrow money from any
source under a loan contract, subject to the following requirements:
(1) The loan contract must be approved by resolution of the board.
(2) The loan contract must provide for the repayment of the loan
in not more than forty (40) years.
(3) This subdivision applies only to loan contracts entered into
under this subsection before July 1, 2013. The loan contract
must state that the indebtedness:
(A) is that of the authority;
(B) is payable solely from revenues of the authority that are
derived from either airport operations or from revenue bonds;
and
(C) may not be paid by a tax levied on property located within
the district.
(4) This subdivision applies only to loan contracts entered into
under this subsection after June 30, 2013. The loan contract
must state that the indebtedness:
(A) is that of the authority;
(B) is payable solely from:
(i) a cumulative building fund established under section
25 of this chapter;
(ii) revenues of the authority that are derived from either
airport operations or from revenue bonds; or
(iii) both items (i) and (ii); and
(C) may not be paid by a general operating fund tax levied
on property located within the district.
(4) (5) The loan contract must be submitted to the department of
local government finance, which may approve, disapprove, or
reduce the amount of the proposed loan contract. The department
of local government finance must make a decision on the loan
contract within thirty (30) days after it is submitted for review.
The action taken by the department of local government finance
on the proposed loan contract is final.
(c) Any loan contract issued under this chapter is issued for
essential public and governmental purposes. A loan contract, the
interest on it, the proceeds received by a holder from the sale of a loan
contract to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of the interest and proceeds are exempt from
taxation as provided in IC 6-8-5.
(d) After the board of an authority enters into a loan contract, the
board may use funds received from state or federal grants to satisfy the
repayment of part or all of the loan contract.