Citations Affected: IC 2-5; IC 2-8; IC 2-8.2; IC 3-6; IC 4-6; IC 4-9.1; IC 4-10; IC 4-12; IC 4-13;
IC 4-31; IC 4-33; IC 4-35; IC 5-2; IC 5-10; IC 5-10.3; IC 5-10.5; IC 6-1.1; IC 6-2.5; IC 6-3;
IC 6-3.1; IC 6-3.5; IC 6-4.1; IC 6-5.5; IC 6-6; IC 6-7; IC 6-8.1; IC 6-9; IC 8-14; IC 8-15.5;
IC 8-15.7; IC 8-23; IC 10-13; IC 11-10; IC 11-12; IC 12-7; IC 12-8; IC 12-10; IC 12-13; IC 12-
14; IC 12-15; IC 12-17.2; IC 12-17.6; IC 16-21; IC 16-28; IC 16-29; IC 20-18; IC 20-20;
IC 20-23; IC 20-24; IC 20-24.5; IC 20-25; IC 20-26; IC 20-27; IC 20-28; IC 20-29; IC 20-31;
IC 20-33; IC 20-43; IC 20-45; IC 20-49; IC 20-51; IC 21-7; IC 21-9; IC 21-12; IC 21-13; IC 21-
14; IC 21-18.5; IC 21-35; IC 21-36; IC 22-2; IC 22-4; IC 23-19; IC 31-33; IC 32-33; IC 35-32;
IC 35-51; IC 36-1; noncode.
Synopsis: Biennial budget. Appropriates money for capital expenditures, the operation of the state, the delivery of Medicaid and other services, and various other distributions and purposes. Abolishes the health finance advisory committee, the health policy advisory committee, and the select joint commission on Medicaid oversight, and transfers their duties to the health finance commission. Restores citation numbering in Article V convention law as adopted by the senate in SB 224. Requires the county chairman of a major political party to provide the name and address of the precinct committeemen and vice committeemen to an elected official, upon request of the elected official. Provides that the office of management and budget may not consider a balance in the state tuition reserve fund when calculating the amount of state reserves at the end of a state fiscal year for purposes of the automatic taxpayer refund. Provides that the racino slot machine wagering tax is imposed on 91.5% of adjusted gross receipts. Specifies that such adjusted gross receipts include the 15% distribution from racinos. Caps supplemental distributions of wagering tax revenues at $48,000,000 statewide. Provides that the exception to the circuit-breaker credit for bonds and lease issued or entered into before July 1, 2008, in St. Joseph County or Lake County also applies to certain bonds or leases issued or entered into to refund those preexisting obligations. Reduces the adjusted gross income tax rate on noncorporate taxpayers to: (1) 3.3% for taxable years beginning after 2014 and before 2017; and (2) to 3.23% for taxable years beginning after 2016. Increases the annual cap on school scholarship tax credits to $7,500,000. Permits a county income tax council to impose a motor vehicle excise surtax and a wheel tax for a county. (Current law permits the county council to impose these taxes.)
Specifies that the body that initially imposes the excise surtax and wheel tax is the body that is empowered to increase, decrease, or rescind the excise surtax and wheel tax. Provides that the inheritance tax expires on January 1, 2013, rather than on January 1, 2022. Specifies that a county is not entitled to an inheritance tax replacement amount for a state fiscal year beginning after June 30, 2013. Repeals the Indiana estate tax and Indiana generation skipping transfer tax. Reallocates certain cigarette tax revenues. Updates references to the Internal Revenue Code . Changes financial institution tax distributions to local governments. Provides that any increase after January 1, 2013, and before March 1, 2013, in the Marion County supplemental auto rental excise tax rate or the Marion County admissions tax rate may not continue in effect after February 28, 2023. Increases the total amount of school scholarship tax credits that may be awarded in a state fiscal year. Allocates 1% of state gross retail tax collections to the motor vehicle highway account. Removes state police expenses from motor vehicle highway account distributions. Establishes the major moves 2020 trust fund. Specifies that money is to be used exclusively for major highway expansion projects that enhance the ability to transport goods in and through Indiana, upon appropriation by the general assembly. Provides that the fund is considered a trust fund, and that money may not be transferred, assigned, or otherwise removed from the fund by the state board of finance, the budget agency, or any other state agency. Provides that, on July 1, 2013, and on July 1, 2014, the auditor of state shall transfer $200,000,000 to the fund from the state general fund. Provides that the Indiana finance authority may enter into public-private agreements for freeway projects in addition to toll road projects. Defines a freeway project as a nontolled highway project subject to a public-private agreement. Specifies that additional statutory authority is not necessary to issue a request for proposals or to enter into a public-private agreement for a freeway project. Provides that freeway projects are not subject to a preliminary feasibility and economic impact study required by current law before entering into a public-private agreement for a toll road project. Provides that lodging facilities constructed on or adjacent to a freeway project are not part of the freeway project. Specifies that the general law concerning public-private partnerships may not be construed to affect a project carried out under the law governing public-private agreements for toll road projects and freeway projects. Provides that if the department of correction or a county incurs medical care expenses in providing medical care to an inmate and the medical care expenses are not reimbursed, the department or the county shall attempt to determine the amount, if any, of the medical care expenses that may be paid: (1) by a policy of insurance that is maintained by the inmate and that covers medical care, dental care, eye care, or any other health care related service; or (2) by Medicaid. Removes expiration date for the Medicare plus 4% provision concerning certain medical costs incurred by the department of correction or a county. Authorizes a hospital assessment fee through June 30, 2017. Extends the health facility quality assessment fee through June 30, 2017. Provides that FSSA may not implement a waiver or Medicaid state plan amendment without having it reviewed by the budget committee. Doubles the amounts that FSSA must pay to funeral directors and cemeteries for the burial expenses of TANF and Medicaid recipients. Specifies distribution of disproportionate share payments for specified fiscal years to specified hospitals and psychiatric institutions. Authorizes transfers from the state tuition reserve to the state general fund if the budget director, after review by the budget committee, makes a determination that the amount of the distribution for that state fiscal year for basic tuition support has been reduced because the amount of the distributions for the state fiscal year for choice scholarships has exceeded the estimated amount of the distributions for choice scholarships. Provides that such a transfer may not exceed $25,000,000 per state fiscal year. Specifies that the amounts transferred shall be used to augment the appropriation for state tuition support and shall be distributed to school corporations to restore the distributions for basic tuition support that have been reduced. Provides that if the state board of education determines that the Indianapolis public school corporation or any other school corporation is entitled to a distribution to correct the amount that was withheld during July through December 2012 from state tuition support and federal funds otherwise to be distributed to the school corporation under the
turnaround academy statute, the state board receives an appropriation of $7,405,892 to make corrected distributions. Requires the recipient school corporation to dismiss and not pursue any claims against the state, the special management team, or the turnaround academy with regard to distributions. Establishes the science, technology, engineering, and mathematics teacher recruitment fund. Establishes the high need fields and minority student teacher stipend programs. Repeals the nursing scholarship and scholarships for special education, occupational therapy, and physical therapy students. Creates a scholarship program for medical students. Requires the Department of Child Services (DCS) to investigate all reports of child abuse or neglect received from a judge or prosecutor. Requires DCS to forward all reports of child abuse or neglect received from medical personnel, school personnel, a social worker, law enforcement officials or personnel, judiciary personnel, or prosecutor personnel to the appropriate local office. Requires the auditor of state to transfer $150,000,000 to the tuition reserve fund on July 1, 2013, and on July 1, 2014. Authorizes a state educational institution to develop and finance a hospitality facility through a financing and operating agreement with a developer. Specifies that the hospitality facility must be generally available to students, faculty, staff, or visitors without discrimination and at reasonable charges. Provides for funding of the securities division. Requires political subdivisions to annually report certain information concerning other post employment benefits (OPEB) to the department of local government finance. Requires studies of various topics. Appropriates money to defease bonds on the state museum and forensics and health sciences lab. Repeals obsolete study committees. Provides that on July 1, 2013, the auditor of state shall transfer $10,000,000 from the mine subsidence insurance fund to the state general fund. Repeals the 2009 appropriation for carrying out architectural and engineering work for a trauma care center in the city of Gary. Repeals certain previously authorized higher education bonding authority. (This conference committee report makes numerous changes to the Senate passed version of the bill including the following: Provides an additional adjusted gross income tax rate reduction for taxable years beginning after 2016. Increases the annual cap on school scholarship tax credits to $7,500,000. Adds provisions authorizing transfers from the state tuition reserve to the state general fund. Deletes a provision establishing the healthy Indiana plan savings account. Deletes provisions freezing MVHA distributions to counties in which the wheel tax and surtax are below 50% of the maximum rate. Provides that the Indiana finance authority may enter into public-private agreements for freeway projects . Reconciles provisions enacted in 2013 concerning an Article V convention. Removes the expiration date for the Medicare plus 4% provision concerning certain medical costs incurred by the department of correction or a county. Establishes the science, technology, engineering, and mathematics teacher recruitment fund. Establishes the high need fields and minority student teacher stipend programs. Deletes provisions concerning financial literacy education. Updates the reference to the Internal Revenue Code . Changes financial institution tax distributions to local governments. Provides that any increase after January 1, 2013, and before March 1, 2013, in the Marion County supplemental auto rental excise tax rate or the Marion County admissions tax rate may not continue in effect after February 28, 2023. Repeals the 2009 appropriation for carrying out architectural and engineering work for a trauma care center in the city of Gary. Repeals certain previously authorized higher education bonding authority. Requires the Department of Child Services (DCS) to investigate all reports of child abuse or neglect received from a judge or prosecutor. Requires DCS to forward all reports of child abuse or neglect received from medical personnel, school personnel, a social worker, law enforcement officials or personnel, judiciary personnel, or prosecutor personnel to the appropriate local office. Specifies distribution of disproportionate share payments for specified fiscal years to specified hospitals and psychiatric institutions. Adds the provision requiring the county chairman of a major political party to provide the name and address of the precinct committeemen and vice committeemen to an elected official, upon request of the elected official.)
MADAM PRESIDENT:
Your Conference Committee appointed to confer with a like committee from the House
upon Engrossed House Amendments to Engrossed House Bill No. 1001 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:
1
SECTION 1. [EFFECTIVE JULY 1, 2013]
2
3
(a) The following definitions apply throughout this act:
4
(1) "Augmentation allowed" means the governor and the budget agency are
5
authorized to add to an appropriation in this act from revenues accruing to the
6
fund from which the appropriation was made.
7
(2) "Biennium" means the period beginning July 1, 2013, and ending June 30, 2015.
8
Appropriations appearing in the biennial column for construction or other permanent
9
improvements do not revert under IC 4-13-2-19 and may be allotted.
10
(3) "Deficiency appropriation" or "special claim" means an appropriation available
11
during the 2012-2013 fiscal year.
12
(4) "Equipment" includes machinery, implements, tools, furniture,
13
furnishings, vehicles, and other articles that have a calculable period of service
14
that exceeds twelve (12) calendar months.
15
(5) "Fee replacement" includes payments to universities to be used to pay indebtedness
16
resulting from financing the cost of planning, purchasing, rehabilitation, construction,
17
repair, leasing, lease-purchasing, or otherwise acquiring land, buildings, facilities,
18
and equipment to be used for academic and instructional purposes.
19
(6) "Federally qualified health center" means a community health center that is
20
designated by the Health Resources Services Administration, Bureau of Primary Health
21
Care, as a Federally Qualified Health Center Look Alike under the FED 330 Consolidated
representatives, shall appoint the members of the committee identified in section 6(2)(D) through 6(2)(H)
of this chapter.
(c) The chairman of the commission, with the advice of the vice chairman of the commission, shall
appoint the members of the health finance advisory committee identified in section 6(3) of this chapter.
8(11), 8(14), 8(15), 8(16), and 8(17) of this chapter.
initiative.
"Fund" means the counter-cyclical revenue and economic stabilization fund established under this
chapter.
"General fund revenue" means all general purpose tax revenue and other unrestricted general purpose
revenue of the state, including federal revenue sharing monies, credited to the state general fund and from
which appropriations may be made.
"Implicit price deflator for the gross national domestic product" means the implicit price deflator for
the gross national domestic product, or its closest equivalent, which is available from the United States
Bureau of Economic Analysis. bureau.
"Political subdivision" has the meaning set forth in IC 36-1-2-13.
"Qualified economic growth initiative" means an economic growth initiative that is:
(1) proposed by or on behalf of a political subdivision to promote economic growth, including the
creation or retention of jobs or the infrastructure necessary to create or retain jobs;
(2) supported by a financing plan by or on behalf of the political subdivision in an amount at least
equal to the proposed amount of the grant under section 15 of this chapter; and
(3) estimated to cost not less than twelve million five hundred thousand dollars ($12,500,000).
"Reporting period" refers to a period of twelve (12) consecutive months.
"State personal income" means state personal income as that term is defined by the bureau. of
Economic Analysis of the United States Department of Commerce or its successor agency.
"Total state general fund revenue" for a particular state fiscal year means the amount of that revenue
for the particular state fiscal year as finally determined by the auditor of state.
"Transfer payments" means transfer payments current personal transfer receipts as that term is
defined by the bureau. of Economic Analysis of the United States Department of Commerce or its
successor agency.
of state reserves as of the end of the state fiscal year. The office of management and budget shall make
the calculation not later than July 31 of each odd-numbered year.
(b) The office of management and budget may not consider a balance in the state tuition reserve
fund established by IC 4-12-1-15.7 when making the calculation required by subsection (a).
SECTION 61. IC 4-10-22-3, AS AMENDED BY P.L.160-2012, SECTION 4, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. After completing the presentation to the
state budget committee described in section 2 of this chapter, the governor shall do the following:
(1) If the amount of excess reserves on June 30 of any year is less than fifty million dollars
($50,000,000), the governor shall carry over the excess reserves to each subsequent year until the
total excess reserves, including any carryover amount, equal at least fifty million dollars
($50,000,000). In the year that the total excess reserves equal at least fifty million dollars
($50,000,000), the excess reserves shall be used as provided in subdivision (2).
(2) If in any year the amount of the excess reserves is fifty million dollars ($50,000,000) or more,
the governor shall do the following:
(A) If the year is calendar year 2012, 2013, transfer fifty percent (50%) one hundred percent
(100%) of the excess reserves as follows:
(i) To the pension plans for the state police, conservation officers, judges, and prosecuting
attorneys to increase the funded amount of each of these plans to eighty percent (80%). The
funded amount for each plan described in this item is to be determined as of June 30 of the
immediately preceding year, and, if the amount of money available for transfer is less than the
amount needed to increase all these plans' funded amount to eighty percent (80%), the transfers
shall be made in the priority of each plan's unfunded liability so that the funded amount of the
plan with the least unfunded liability is raised to eighty percent (80%) first.
(ii) to the pension stabilization fund established by IC 5-10.4-2-5 for the purposes of the
pension stabilization fund. if money remains after satisfying item (i).
If the year begins after December 31, 2012, is calendar year 2014 or thereafter, transfer fifty
percent (50%) of any excess reserves to the pension stabilization fund established by
IC 5-10.4-2-5 for the purposes of the pension stabilization fund.
(B) If the year is calendar year 2014 or thereafter, use fifty percent (50%) of any excess
reserves for the purposes of providing an automatic taxpayer refund under section 4 of this
chapter.
bill or bills are prepared in a calendar year other than a calendar year in which a
gubernatorial election is held; or
(2) the third Monday of January, if the budget report and budget bill or bills are prepared in
the same calendar year in which a gubernatorial election is held.
The governor shall deliver to the house members of the budget committee such bill or bills for
introduction into the house of representatives.
(b) Whenever during the period beginning thirty (30) days prior to a regular session of the general
assembly the budget report and budget bill or bills have been completed and printed and are available for
distribution, upon the request of a member of the general assembly an informal distribution of one (1)
copy of each such document shall be made by the budget committee to such members. During business
hours, and as may be otherwise required during sessions of the general assembly, the budget agency shall
make available to the members of the general assembly so much as they shall require of its accumulated
staff information, analyses and reports concerning the fiscal affairs of the state and the current budget
report and budget bill or bills.
(c) The budget report shall include at least the following five (5) parts:
(1) A statement of budget policy, including but not limited to recommendations with reference to
the fiscal policy of the state for the coming budget period, and describing the important features of
the budget.
(2) A general budget summary setting forth the aggregate figures of the budget to show the total
proposed expenditures and the total anticipated income, and the surplus or deficit.
(3) The detailed data on actual receipts and expenditures for the previous fiscal year or two (2) fiscal
years depending upon the length of the budget period for which the budget bill or bills is proposed,
the estimated receipts and expenditures for the current year, and for the ensuing budget period, and
the anticipated balances at the end of the current fiscal year and the ensuing budget period. Such
data shall be supplemented with necessary explanatory schedules and statements, including a
statement of any differences between the recommendations of the budget agency and of the budget
committee.
(4) A description of the capital improvement program for the state and an explanation of its relation
to the budget.
(5) The budget bills.
(d) The budget report shall cover and include all special and dedicated revenue funds as well as the
general revenue fund and shall include the estimated amounts of federal aids, for whatever purpose
provided, together with estimated expenditures therefrom.
(e) The budget agency shall furnish the governor with any further information required concerning the
budget, and upon request shall attend hearings of committees of the general assembly on the budget bills.
staffing of programs or agencies supported in whole or in part by federal funds are subject to review and
approval by the state personnel department under IC 4-15-2.2.
(c) The budget agency shall review and approve, for the sufficiency of funds, all payments for personal
services which are submitted to the auditor of state for payment.
(d) The budget agency shall review all contracts for personal services or other services and no contract
for personal services or other services may be entered into by any agency of the state before the written
approval of the budget agency is given. Each demand for payment submitted by an agency to the auditor
of state under these contracts must be accompanied by a copy of the budget agency approval. No payment
may be made by the auditor of state without such approval. However, this subsection does not apply to
a contract entered into by:
(1) a state educational institution; or
(2) an agency of the state if the contract is not required to be approved by the budget agency under
IC 4-13-2-14.1.
(e) The budget agency shall review and approve the policy and procedures governing travel prepared
by the department of administration under IC 4-13-1, before the travel policies and procedures are
distributed.
(f) Except as provided in subsection (g), the budget agency may adopt such policies and procedures
not inconsistent with law as it may deem advisable to facilitate and carry out the powers and duties of the
agency, including the execution and administration of all appropriations made by law. IC 4-22-2 does not
apply to these policies and procedures.
(g) The budget agency may not enforce or apply any policy or procedure, unless specifically
authorized by this chapter or an applicable statute, against or in relation to the following officials
or agencies, unless the official or agency consents to comply with the policy or procedure, or
emergency circumstances justify extraordinary measures to protect the state's budget or fiscal
reserves:
(1) The judicial department of the state.
(2) The general assembly, the legislative services agency, or any other entity of the legislative
department of the state.
(3) The attorney general.
(4) The auditor of state.
(5) The secretary of state.
(6) The superintendent of public instruction.
(7) The treasurer of state.
scheduling under IC 4-33-6-21 shall be paid to the Indiana horse racing commission to be distributed
as follows, in amounts determined by the Indiana horse racing commission, for the promotion and
operation of horse racing in Indiana:
(A) To one (1) or more breed development funds established by the Indiana horse racing
commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse racing commission under IC 4-31. The
commission may make a grant under this clause only for purses, promotions, and routine
operations of the racetrack. No grants shall be made for long term capital investment or
construction, and no grants shall be made before the racetrack becomes operational and is
offering a racing schedule.
(c) With respect to tax revenue collected from a riverboat located in a historic hotel district, the
treasurer of state shall quarterly pay the following:
(1) With respect to admissions taxes collected for a person admitted to the riverboat before July 1,
2010, the following amounts:
(A) Twenty-two percent (22%) of the admissions tax collected during the quarter shall be paid
to the county treasurer of the county in which the riverboat is located. The county treasurer shall
distribute the money received under this clause as follows:
(i) Twenty-two and seventy-five hundredths percent (22.75%) shall be quarterly distributed to
the county treasurer of a county having a population of more than forty thousand (40,000) but
less than forty-two thousand (42,000) for appropriation by the county fiscal body after
receiving a recommendation from the county executive. The county fiscal body for the
receiving county shall provide for the distribution of the money received under this item to one
(1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established
by the county fiscal body after receiving a recommendation from the county executive.
(ii) Twenty-two and seventy-five hundredths percent (22.75%) shall be quarterly distributed
to the county treasurer of a county having a population of more than ten thousand seven
hundred (10,700) but less than twelve thousand (12,000) for appropriation by the county fiscal
body. The county fiscal body for the receiving county shall provide for the distribution of the
money received under this item to one (1) or more taxing units (as defined in IC 6-1.1-1-21)
in the county under a formula established by the county fiscal body after receiving a
recommendation from the county executive.
(iii) Fifty-four and five-tenths percent (54.5%) shall be retained by the county where the
riverboat is located for appropriation by the county fiscal body after receiving a
recommendation from the county executive.
(B) Five percent (5%) of the admissions tax collected during the quarter shall be paid to a town
having a population of more than two thousand (2,000) but less than three thousand five hundred
(3,500) located in a county having a population of more than nineteen thousand five hundred
(19,500) but less than twenty thousand (20,000). At least twenty percent (20%) of the taxes
received by a town under this clause must be transferred to the school corporation in which the
town is located.
(C) Five percent (5%) of the admissions tax collected during the quarter shall be paid to a town
having a population of more than three thousand five hundred (3,500) located in a county having
a population of more than nineteen thousand five hundred (19,500) but less than twenty thousand
(20,000). At least twenty percent (20%) of the taxes received by a town under this clause must
be transferred to the school corporation in which the town is located.
(D) Twenty percent (20%) of the admissions tax collected during the quarter shall be paid in
equal amounts to each town that:
(i) is located in the county in which the riverboat is located; and
corporation to be used in the manner described in subdivision (1)(G).
(d) With respect to tax revenue collected from a riverboat that operates from a county having a
population of more than four hundred thousand (400,000) but less than seven hundred thousand
(700,000), the treasurer of state shall quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the city in which the riverboat is docked.
(2) Except as provided in subsection (k), one dollar ($1) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked.
(3) Except as provided in subsection (k), nine cents ($0.09) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or promotion fund for the county in which
the riverboat is docked.
(4) Except as provided in subsection (k), one cent ($0.01) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the northwest Indiana law enforcement training center.
(5) Except as provided in subsection (k), fifteen cents ($0.15) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during a quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the state fair commission for use in any activity that the commission is authorized
to carry out under IC 15-13-3.
(6) Except as provided in subsection (k), ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under
IC 4-33-6-21;
shall be paid to the division of mental health and addiction. The division shall allocate at least
twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and
treatment of compulsive gambling.
(7) Except as provided in subsection (k) and section 7 of this chapter, sixty-five cents ($0.65) of the
admissions tax collected by the licensed owner for each person embarking on a gambling excursion
during the quarter or admitted to a riverboat during the quarter that has implemented flexible
scheduling under IC 4-33-6-21 shall be paid to the Indiana horse racing commission to be distributed
as follows, in amounts determined by the Indiana horse racing commission, for the promotion and
operation of horse racing in Indiana:
(A) To one (1) or more breed development funds established by the Indiana horse racing
commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse racing commission under IC 4-31. The
commission may make a grant under this clause only for purses, promotions, and routine
operations of the racetrack. No grants shall be made for long term capital investment or
construction, and no grants shall be made before the racetrack becomes operational and is
offering a racing schedule.
(e) Money paid to a unit of local government under subsection (b), (c), or (d):
(1) must be paid to the fiscal officer of the unit and may be deposited in the unit's general fund or
riverboat fund established under IC 36-1-8-9, or both;
(2) may not be used to reduce the unit's maximum levy under IC 6-1.1-18.5 but may be used at the
discretion of the unit to reduce the property tax levy of the unit for a particular year;
(3) may be used for any legal or corporate purpose of the unit, including the pledge of money to
bonds, leases, or other obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
(f) Money paid by the treasurer of state under subsection (b)(3) or (d)(3) shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a convention and visitor promotion
fund; and
(2) used only for the tourism promotion, advertising, and economic development activities of the
county and community.
(g) Money received by the division of mental health and addiction under subsections (b)(5) and (d)(6):
(1) is annually appropriated to the division of mental health and addiction;
(2) shall be distributed to the division of mental health and addiction at times during each state fiscal
year determined by the budget agency; and
(3) shall be used by the division of mental health and addiction for programs and facilities for the
prevention and treatment of addictions to drugs, alcohol, and compulsive gambling, including the
creation and maintenance of a toll free telephone line to provide the public with information about
these addictions. The division shall allocate at least twenty-five percent (25%) of the money received
to the prevention and treatment of compulsive gambling.
(h) This subsection applies to the following:
(1) Each entity receiving money under subsection (b).
(2) Each entity receiving money under subsection (d)(1) through (d)(2).
(3) Each entity receiving money under subsection (d)(5) through (d)(7).
The treasurer of state shall determine the total amount of money paid by the treasurer of state to an entity
subject to this subsection during the state fiscal year 2002. The amount determined under this subsection
is the base year revenue for each entity subject to this subsection. The treasurer of state shall certify the
base year revenue determined under this subsection to each entity subject to this subsection.
(i) This subsection applies to an entity receiving money under subsection (d)(3) or (d)(4). The treasurer
of state shall determine the total amount of money paid by the treasurer of state to the entity described in
subsection (d)(3) during state fiscal year 2002. The amount determined under this subsection multiplied
by nine-tenths (0.9) is the base year revenue for the entity described in subsection (d)(3). The amount
determined under this subsection multiplied by one-tenth (0.1) is the base year revenue for the entity
described in subsection (d)(4). The treasurer of state shall certify the base year revenue determined under
this subsection to each entity subject to this subsection.
following purposes:
(1) To reduce the property tax levy of the city, town, or county for a particular year (a property tax
reduction under this subdivision does not reduce the maximum levy of the city, town, or county
under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under IC 8-22-3.5, IC 36-7-14,
IC 36-7-14.5, IC 36-7-15.1, and IC 36-7-30 to provide funding for debt repayment.
(3) To fund sewer and water projects, including storm water management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money is appropriated by the fiscal body
of the city, town, or county. Money used under this subdivision does not reduce the property tax levy
of the city, town, or county for a particular year or reduce the maximum levy of the city, town, or
county under IC 6-1.1-18.5.
(g) This subsection does not apply to an entity receiving money under IC 4-33-12-6(c). Before
September 15 of each year, the treasurer of state shall determine the total amount of money distributed
to an entity under IC 4-33-12-6 during the preceding state fiscal year. If the treasurer of state determines
that the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal
year was less than the entity's base year revenue (as determined under IC 4-33-12-6), the treasurer of state
shall make a supplemental distribution to the entity from taxes collected under this chapter and deposited
into the state general fund. Except as provided in subsection (i) or (j), the amount of an entity's
supplemental distribution is equal to:
(1) the entity's base year revenue (as determined under IC 4-33-12-6); minus
(2) the sum of:
(A) the total amount of money distributed to the entity during the preceding state fiscal year
under IC 4-33-12-6. plus
(B) any amounts deducted under IC 6-3.1-20-7.
(h) This subsection applies only to a county containing a consolidated city. The county auditor shall
distribute the money received by the county under subsection (e) as follows:
(1) To each city, other than a consolidated city, located in the county according to the ratio that the
city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio that the town's population bears to the
total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be paid
in equal amounts to the consolidated city and the county.
(i) This subsection applies only to the Indiana horse racing commission. For each state fiscal year the
amount of the Indiana horse racing commission's supplemental distribution under subsection (g) must be
reduced by the amount required to comply with IC 4-33-12-7(a).
(j) This subsection applies to a supplemental distribution made after June 30, 2013. The
maximum amount of money that may be distributed under subsection (g) in a state fiscal year is
forty-eight million dollars ($48,000,000). If the total amount determined under subsection (g)
exceeds forty-eight million dollars ($48,000,000), the amount distributed to an entity under
subsection (g) must be reduced according to the ratio that the amount distributed to the entity
under IC 4-33-12-6 bears to the total amount distributed under IC 4-33-12-6 to all entities receiving
a supplemental distribution.
SECTION 71. IC 4-35-2-2, AS ADDED BY P.L.233-2007, SECTION 21, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. "Adjusted gross receipts" means:
(1) the total of all cash and property (including checks received by a licensee, whether collected or
not) received by a licensee from gambling games, including amounts that are distributed by a
licensee under IC 4-35-7-12; minus
terms shall complete before being eligible for continued or permanent employment.
(7) Minimum basic training requirements which law enforcement officers appointed on other than
a permanent basis shall complete in order to be eligible for continued employment or permanent
appointment.
(8) Minimum basic training requirements which law enforcement officers appointed on a permanent
basis shall complete in order to be eligible for continued employment.
(9) Minimum basic training requirements for each person accepted for training at a law enforcement
training school or academy that include six (6) hours of training in interacting with:
(A) persons with autism, mental illness, addictive disorders, mental retardation, and
developmental disabilities;
(B) missing endangered adults (as defined in IC 12-7-2-131.3); and
(C) persons with Alzheimer's disease or related senile dementia;
to be provided by persons approved by the secretary of family and social services and the board.
(10) Minimum standards for a course of study on human and sexual trafficking that must be required
for each person accepted for training at a law enforcement training school or academy and for
inservice training programs for law enforcement officers. The course must cover the following
topics:
(A) Examination of the human and sexual trafficking laws (IC 35-42-3.5).
(B) Identification of human and sexual trafficking.
(C) Communicating with traumatized persons.
(D) Therapeutically appropriate investigative techniques.
(E) Collaboration with federal law enforcement officials.
(F) Rights of and protections afforded to victims.
(G) Providing documentation that satisfies the Declaration of Law Enforcement Officer for
Victim of Trafficking in Persons (Form I-914, Supplement B) requirements established under
federal law.
(H) The availability of community resources to assist human and sexual trafficking victims.
(b) A law enforcement officer appointed after July 5, 1972, and before July 1, 1993, may not enforce
the laws or ordinances of the state or any political subdivision unless the officer has, within one (1) year
from the date of appointment, successfully completed the minimum basic training requirements
established under this chapter by the board. If a person fails to successfully complete the basic training
requirements within one (1) year from the date of employment, the officer may not perform any of the
duties of a law enforcement officer involving control or direction of members of the public or exercising
the power of arrest until the officer has successfully completed the training requirements. This subsection
does not apply to any law enforcement officer appointed before July 6, 1972, or after June 30, 1993.
(c) Military leave or other authorized leave of absence from law enforcement duty during the first year
of employment after July 6, 1972, shall toll the running of the first year, which shall be calculated by the
aggregate of the time before and after the leave, for the purposes of this chapter.
(d) Except as provided in subsections (e), (l), (r), and (s), a law enforcement officer appointed to a law
enforcement department or agency after June 30, 1993, may not:
(1) make an arrest;
(2) conduct a search or a seizure of a person or property; or
(3) carry a firearm;
unless the law enforcement officer successfully completes, at a board certified law enforcement academy
or at a law enforcement training center under section 10.5 or 15.2 of this chapter, the basic training
requirements established by the board under this chapter.
(e) This subsection does not apply to:
(1) a gaming agent employed as a law enforcement officer by the Indiana gaming commission; or
45 U.S.C. 231 and which are not deductible under subdivision (1).
(10) 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.
(11) 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.
(12) 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.
(13) 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.
(14) 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.
(15) Subtract an amount equal to the lesser of:
(A) 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.
(16) Subtract an amount equal to the amount of a September 11 terrorist attack settlement payment
included in the individual's federal adjusted gross income.
(17) 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.
(18) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue
Code.
(19) 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).
(20) 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.
(21) 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.
(22) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the individual's federal adjusted gross income under the Internal Revenue Code.
(23) Subtract any amount of a credit (including an advance refund of the credit) that is provided to
an individual under 26 U.S.C. 6428 (federal Economic Stimulus Act of 2008) and included in the
individual's federal adjusted gross income.
(24) Add any amount of unemployment compensation excluded from federal gross income, as
defined in Section 61 of the Internal Revenue Code, under Section 85(c) of the Internal Revenue
Code.
(25) Add the amount excluded from gross income under Section 108(a)(1)(e) of the Internal
Revenue Code for the discharge of debt on a qualified principal residence.
(26) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract the amount necessary from the adjusted gross
income of any taxpayer that added an amount to adjusted gross income in a previous year to offset
the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.
(27) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified restaurant property in service during the taxable year and that was classified as 15-year
property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the classification not applied to the property in
the year that it was placed in service.
(28) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified retail improvement property in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed in service.
(29) (27) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.
(30) (28) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property 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.
(31) (29) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production 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.
(32) (30) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 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 the loss not been treated as an ordinary loss.
(33) (31) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.
(34) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code
for the expensing of environmental remediation costs.
(35) Add the amount excluded from gross income under Section 408(d)(8) of the Internal Revenue
Code for a charitable distribution from an individual retirement plan.
(36) Add the amount deducted from gross income under Section 222 of the Internal Revenue Code
for qualified tuition and related expenses.
(37) Add the amount deducted from gross income under Section 62(a)(2)(D) of the Internal Revenue
Code for certain expenses of elementary and secondary school teachers.
(38) Add the amount excluded from gross income under Section 127 of the Internal Revenue Code
as annual employer provided education expenses.
(39) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code
for any qualified advanced mine safety equipment property.
(40) Add the monthly amount excluded from gross income under Section 132(f)(1)(A) and
132(f)(1)(B) of the Internal Revenue Code that exceeds one hundred dollars ($100) a month for a
qualified transportation fringe.
(41) Add the amount deducted from gross income under Section 221 of the Internal Revenue Code
that exceeds the amount the taxpayer could deduct under Section 221 of the Internal Revenue Code
before it was amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 (P.L. 111-312).
(42) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any
qualified leasehold improvement property in service during the taxable year and that was classified
as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(43) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a
motorsports entertainment complex in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(44) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up
expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(45) Add the amount necessary to make the adjusted gross income of any taxpayer for which tax was
not imposed on the net recognized built-in gain of an S corporation under Section 1374(d)(7) of the
Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240) equal
to the amount of adjusted gross income that would have been computed before Section 1374(d)(7)
of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(46) (32) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time
the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.
(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.
(10) Add an amount equal to any deduction for dividends paid (as defined in Section 561 of the
Internal Revenue Code) to shareholders of a captive real estate investment trust (as defined in
section 34.5 of this chapter).
(11) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the corporation's taxable income under the Internal Revenue Code.
(12) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to
offset the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.
(13) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified restaurant property in service during the taxable year and that was classified as 15-year
property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the classification not applied to the property in
the year that it was placed in service.
(14) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified retail improvement property in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed in service.
(15) (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.
(16) (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property 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.
(17) (15) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production 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.
(18) (16) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 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 the loss not been treated as an ordinary loss.
(19) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code
for the expensing of environmental remediation costs.
(20) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code
for any qualified advanced mine safety equipment property.
(21) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any
qualified leasehold improvement property in service during the taxable year and that was classified
as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(22) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a
motorsports entertainment complex in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(23) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up
expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(24) (17) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time
the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.
(25) (18) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.
(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.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to
offset the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.
(11) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified restaurant property in service during the taxable year and that was classified as 15-year
property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the classification not applied to the property in
the year that it was placed in service.
(12) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified retail improvement property in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed in service.
(13) (11) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.
(14) (12) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property 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.
(15) (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production 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.
(16) (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 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 the loss not been treated as an ordinary loss.
(17) (15) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal
Revenue Code that is active financing income under Subpart F of Subtitle A, Chapter 1, Subchapter
N of the Internal Revenue Code.
(18) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any
qualified leasehold improvement property in service during the taxable year and that was classified
as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(19) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a
motorsports entertainment complex in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(20) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up
expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(21) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code
for the expensing of environmental remediation costs.
(22) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code
for any qualified advanced mine safety equipment property.
(23) (16) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time
the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.
(24) (17) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.
(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.
(9) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the insurance company's taxable income under the Internal Revenue Code.
(10) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to
offset the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.
(11) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified restaurant property in service during the taxable year and that was classified as 15-year
property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the classification not applied to the property in
the year that it was placed in service.
(12) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified retail improvement property in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed in service.
(13) (11) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.
(14) (12) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property 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.
(15) (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production 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.
(16) (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 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 the loss not been treated as an ordinary loss.
(17) (15) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal
Revenue Code that is active financing income under Subpart F of Subtitle A, Chapter 1, Subchapter
N of the Internal Revenue Code.
(18) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any
qualified leasehold improvement property in service during the taxable year and that was classified
as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(19) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a
motorsports entertainment complex in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(20) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up
expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(21) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code
for the expensing of environmental remediation costs.
(22) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code
for any qualified advanced mine safety equipment property.
(23) (16) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time
the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.
(24) (17) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.
(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.
(7) Subtract income that is:
(A) exempt from taxation under IC 6-3-2-21.7; and
(B) included in the taxpayer's taxable income under the Internal Revenue Code.
(8) Add an amount equal to any income not included in gross income as a result of the deferral of
income arising from business indebtedness discharged in connection with the reacquisition after
December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in
Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any
taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to
offset the amount included in federal gross income as a result of the deferral of income arising from
business indebtedness discharged in connection with the reacquisition after December 31, 2008, and
before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the
Internal Revenue Code.
(9) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified restaurant property in service during the taxable year and that was classified as 15-year
property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted
gross income that would have been computed had the classification not applied to the property in
the year that it was placed in service.
(10) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified retail improvement property in service during the taxable year and that was classified as
15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed in service.
(11) (9) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.
(12) (10) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property 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.
(13) (11) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production 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.
(14) (12) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(A) the Federal National Mortgage Association, established under the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716 et seq.); or
(B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 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 the loss not been treated as an ordinary loss.
(15) (13) Add the amount excluded from gross income under Section 108(a)(1)(e) of the Internal
Revenue Code for the discharge of debt on a qualified principal residence.
(16) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any
qualified leasehold improvement property in service during the taxable year and that was classified
as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(17) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a
motorsports entertainment complex in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of
adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(18) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up
expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(19) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code
for the expensing of environmental remediation costs.
(20) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code
for any qualified advanced mine safety equipment property.
(21) Add the amount necessary to make the adjusted gross income of any taxpayer for which tax was
not imposed on the net recognized built-in gain of an S corporation under Section 1374(d)(7) of the
Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240) equal
to the amount of adjusted gross income that would have been computed before Section 1374(d)(7)
of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(22) (14) This subdivision does not apply to payments made for services provided to a business that
was enrolled and participated in the E-Verify program (as defined in IC 22-5-1.7-3) during the time
the taxpayer conducted business in Indiana in the taxable year. For a taxable year beginning after
June 30, 2011, add the amount of any trade or business deduction allowed under the Internal
Revenue Code for wages, reimbursements, or other payments made for services provided in Indiana
by an individual for services as an employee, if the individual was, during the period of service,
prohibited from being hired as an employee under 8 U.S.C. 1324a.
(23) (15) Add the amount excluded from federal gross income under Section 103 of the Internal
Revenue Code for interest received on an obligation of a state other than Indiana, or a political
subdivision of such a state, that is acquired by the taxpayer after December 31, 2011.
companies qualified entity treatment.
(4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code pertaining to the modification of tax
treatment of certain payments to controlling exempt organizations.
(5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code pertaining to the limitations on
percentage depletion in the case of oil and gas wells.
(6) Section 451(i)(3) of the Internal Revenue Code pertaining to special rule for sales or dispositions
to implement Federal Energy Regulatory Commission or state electric restructuring policy for
qualified electric utilities.
(7) Section 954(c)(6) of the Internal Revenue Code pertaining to the look-through treatment of
payments between related controlled foreign corporation under foreign personal holding company
rules.
The department shall develop forms and adopt any necessary rules under IC 4-22-2 to implement this
subsection.
SECTION 82. IC 6-3-2-1, AS AMENDED BY P.L.172-2011, SECTION 54, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) Each taxable year, a tax at the rate of
three and four-tenths percent (3.4%) following rate of adjusted gross income is imposed upon the
adjusted gross income of every resident person, and on that part of the adjusted gross income derived from
sources within Indiana of every nonresident person:
(1) For taxable years beginning before January 1, 2015, three and four-tenths percent (3.4%).
(2) For taxable years beginning after December 31, 2014, and before January 1, 2017, three
and three-tenths percent (3.3%).
(3) For taxable years beginning after December 31, 2016, three and twenty-three hundredths
percent (3.23%).
(b) Except as provided in section 1.5 of this chapter, each taxable year, a tax at the following rate of
adjusted gross income is imposed on that part of the adjusted gross income derived from sources within
Indiana of every corporation:
(1) Before July 1, 2012, eight and five-tenths percent (8.5%).
(2) After June 30, 2012, and before July 1, 2013, eight percent (8.0%).
(3) After June 30, 2013, and before July 1, 2014, seven and five-tenths percent (7.5%).
(4) After June 30, 2014, and before July 1, 2015, seven percent (7.0%).
(5) After June 30, 2015, six and five-tenths percent (6.5%).
(c) If for any taxable year a taxpayer is subject to different tax rates under subsection (b), the taxpayer's
tax rate for that taxable year is the rate determined in the last STEP of the following STEPS:
STEP ONE: Multiply the number of months in the taxpayer's taxable year that precede the month
the rate changed by the rate in effect before the rate change.
STEP TWO: Multiply the number of months in the taxpayer's taxable year that follow the month
before the rate changed by the rate in effect after the rate change.
STEP THREE: Divide the sum of the amounts determined under STEPS ONE and TWO by twelve
(12).
However, the rate determined under this subsection shall be rounded to the nearest one-hundredth of one
percent (0.01%).
SECTION 83. IC 6-3.1-13-28 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 28. The corporation shall, not later than
August 1 each year, submit to the budget committee a report specifying the amount of credits
granted under this chapter during the immediately preceding state fiscal year.
SECTION 84. IC 6-3.1-30.5-13, AS AMENDED BY P.L.92-2011, SECTION 3, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 13. The total amount of tax credits awarded
under this chapter may not exceed five seven million five hundred thousand dollars ($5,000,000)
($7,500,000) in a state fiscal year.
SECTION 85. IC 6-3.5-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JUNE 1, 2013]:
Sec. 1. As used in this chapter:
"Adopting entity" means either the county council or the county income tax council established
by IC 6-3.5-6-2 for the county, whichever adopts an ordinance to impose a surtax first.
"Branch office" means a branch office of the bureau of motor vehicles.
"County council" includes the city-county council of a county that contains a consolidated city of the
first class.
"Motor vehicle" means a vehicle which is subject to the annual license excise tax imposed under
IC 6-6-5.
"Net annual license excise tax" means the tax due under IC 6-6-5 after the application of the
adjustments and credits provided by that chapter.
"Surtax" means the annual license excise surtax imposed by a county council an adopting entity under
this chapter.
year preceding the year the surtax is first effective.
entity under this chapter, a county income tax council is comprised of the same members as the
county income tax council that is established by IC 6-3.5-6-2 for the county (regardless of the
income tax that may be in effect in the county). The county income tax council shall use the same
procedures that apply under IC 6-3.5-6 when acting as an adopting entity under this chapter.
department or the county assessor believes that the transfer will not jeopardize the collection of
inheritance tax.
(f) The department of state revenue shall send a copy of any consent to transfer that it issues under this
section to the county assessor of the county in which the resident decedent was domiciled at the time of
the decedent's death.
SECTION 110. IC 6-4.1-9-0.5, AS ADDED BY P.L.157-2012, SECTION 13, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2013 (RETROACTIVE)]: Sec. 0.5. This chapter does
not apply to a property interest transferred by a decedent whose death occurs after December 31, 2021.
2012.
1, 2013 (RETROACTIVE)]: Sec. 4. (a) A person who files a claim for the refund of inheritance tax or
Indiana estate tax (paid before its repeal) may appeal any refund order which the department of state
revenue enters with respect to his the person's claim. To initiate the appeal, the person must, within
ninety (90) days after the department enters the order, file a complaint in which the department is named
as the defendant.
(b) The court which has jurisdiction over an appeal initiated under this section is:
(1) the probate court of the county in which administration of the estate is pending, if the appeal
involves either a resident or a nonresident decedent's estate and administration of the estate is
pending;
(2) the probate court of the county in which the decedent was domiciled at the time of his the
decedent's death, if the appeal involves a resident decedent's estate and no administration of the
estate is pending in Indiana; or
(3) the probate court of any county in which any of the decedent's property was located at the time
of his the decedent's death, if the appeal involves a nonresident decedent's estate and no
administration of the estate is pending in Indiana.
July 1, 2011.
STEP TWO: Multiply the STEP ONE amount by ninety-one percent (91%).
STEP THREE: Determine the difference between:
(A) the STEP TWO result; minus
(B) the amount of any inheritance taxes retained by the county under IC 6-4.1-9-6 with
respect to a resident decedent's death occurring in 2013.
There is appropriated from the state general fund the amount necessary to make the distributions under
this subsection.
(c) For a state fiscal year ending before July 1, 2012, the department of state revenue shall determine
the inheritance tax replacement amount for each county using the following formula:
STEP ONE: Determine the amount of inheritance tax revenue retained by each county in each state
fiscal year beginning with the state fiscal year that began July 1, 1990, and ending with the state
fiscal year that ends June 30, 1997.
STEP TWO: Determine the average annual amount of inheritance tax revenue retained by each
county using five (5) of the seven (7) state fiscal years described in STEP ONE after excluding the
two (2) years in which each county retained its highest and lowest totals of inheritance tax revenue.
STEP THREE: Determine the remainder of the STEP TWO amount minus the amount of inheritance
taxes retained by the county during the immediately preceding state fiscal year.
(d) For a state fiscal year beginning after June 30, 2012, and ending before July 1, 2022, the
department of state revenue shall determine the inheritance tax replacement amount for each county using
the following formula:
STEP ONE: Determine the inheritance tax replacement amount distributed to the county for the state
fiscal year that began on July 1, 2011.
STEP TWO: Multiply the amount determined under STEP ONE by the appropriate percentage as
follows:
(A) ninety-one percent (91%) for the state fiscal year beginning July 1, 2012.
(B) Eighty-two percent (82%) for the state fiscal year beginning July 1, 2013.
(C) Seventy-three percent (73%) for the state fiscal year beginning July 1, 2014.
(D) Sixty-four percent (64%) for the state fiscal year beginning July 1, 2015.
(E) Fifty-five percent (55%) for the state fiscal year beginning July 1, 2016.
(F) Forty-five percent (45%) for the state fiscal year beginning July 1, 2017.
(G) Thirty-six percent (36%) for the state fiscal year beginning July 1, 2018.
(H) Twenty-seven percent (27%) for the state fiscal year beginning July 1, 2019.
(I) Eighteen percent (18%) for the state fiscal year beginning July 1, 2020.
(J) Nine percent (9%) for the state fiscal year beginning July 1, 2021.
(e) (c) A county is not entitled to a distribution under subsection (b) for a state fiscal year beginning
after June 30, 2022. 2013.
adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed in service.
(L) Add the amount necessary to make the adjusted gross income of any taxpayer that placed
qualified retail improvement property in service during the taxable year and that was classified
as 15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the
amount of adjusted gross income that would have been computed had the classification not
applied to the property in the year that it was placed in service.
(M) (K) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that claimed the special allowance for qualified disaster assistance property under Section 168(n)
of the Internal Revenue Code equal to the amount of adjusted gross income that would have been
computed had the special allowance not been claimed for the property.
(N) (L) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 179C of the Internal Revenue Code to expense costs for
qualified refinery property 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.
(O) (M) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that made an election under Section 181 of the Internal Revenue Code to expense costs for a
qualified film or television production 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.
(P) (N) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer
that treated a loss from the sale or exchange of preferred stock in:
(i) the Federal National Mortgage Association, established under the Federal National
Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); or
(ii) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 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 the loss not been treated as an ordinary loss.
(Q) (O) Add an amount equal to any exempt insurance income under Section 953(e) of the
Internal Revenue Code for active financing income under Subpart F, Subtitle A, Chapter 1,
Subchapter N of the Internal Revenue Code.
(R) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any
qualified leasehold improvement property in service during the taxable year and that was
classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal
to the amount of adjusted gross income that would have been computed had the classification not
applied to the property in the year that it was placed into service.
(S) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code
for the expensing of environmental remediation costs.
(T) Add the amount deducted from gross income under Section 179E of the Internal Revenue
Code for any qualified advanced mine safety equipment property.
(U) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a
motorsports entertainment complex in service during the taxable year and that was classified as
7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount
of adjusted gross income that would have been computed had the classification not applied to the
property in the year that it was placed into service.
(V) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up
expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal
Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
business upon investment contracts issued by the company and held by persons residing within
Indiana and elsewhere.
(d) As used in subsection (c), "investment company" means a person, copartnership, association,
limited liability company, or corporation, whether domestic or foreign, that:
(1) is registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.); and
(2) solicits or receives a payment to be made to itself and issues in exchange for the payment:
(A) a so-called bond;
(B) a share;
(C) a coupon;
(D) a certificate of membership;
(E) an agreement;
(F) a pretended agreement; or
(G) other evidences of obligation;
entitling the holder to anything of value at some future date, if the gross payments received by the
company during the taxable year on outstanding investment contracts, plus interest and dividends
earned on those contracts (by prorating the interest and dividends earned on investment contracts
by the same proportion that certificate reserves (as defined by the Investment Company Act of 1940)
is to the company's total assets) is at least fifty percent (50%) of the company's gross payments upon
investment contracts plus gross income from all other sources except dividends from subsidiaries
for the taxable year. The term "investment contract" means an instrument listed in clauses (A)
through (G).
SECTION 125. IC 6-5.5-8-2, AS AMENDED BY P.L.146-2008, SECTION 351, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. (a) On or before February 1, May 1, August
1, and December 1 and June 1 of each year the auditor of state shall transfer from the financial
institutions tax fund to each county auditor for distribution to the taxing units (as defined in
IC 6-1.1-1-21) in the county, an amount equal to one-fourth (1/4) fifty percent (50%) of the sum of the
guaranteed amounts distributions under this section for all the taxing units of the county On or before
August 1 of each year the auditor of state shall transfer to each county auditor the supplemental
distribution for the county for the year. for the state fiscal year. The amount of a taxing unit's
distribution for the state fiscal year is equal to the result of:
(1) an amount equal to forty percent (40%) of the total financial institutions tax revenue
collected during the preceding state fiscal year; multiplied by
(2) a fraction equal to:
(A) the amount of the guaranteed distributions received by the taxing unit under this
chapter during calendar year 2012 (based on the best information available to the
department); divided by
(B) the total amount of all guaranteed distributions received by all taxing units under this
chapter during calendar year 2012 (based on the best information available to the
department).
(b) For purposes of determining distributions under subsection (c), the department of local government
finance shall determine a state welfare allocation and tuition support allocation for each county calculated
as follows:
(1) The state welfare allocation for each county equals the greater of zero (0) or the amount
determined under the following formula:
STEP ONE: For 1997, 1998, and 1999, determine the result of:
(i) the amounts appropriated by the county in the year for the county's county welfare fund and
county welfare administration fund; divided by
(ii) the amounts appropriated by all the taxing units in the county in the year.
lessor where the possession of the personal property is transferred to the lessee; minus
(3) in the case of a taxing unit that is a county, the amount that would have been received by the
taxing unit in the year of the distribution, as determined by the department of local government
finance from property taxes that:
(A) were calculated for the county's county welfare fund and county welfare administration fund
for 2000 but were not imposed because of the repeal of IC 12-19-3 and IC 12-19-4; and
(B) would have been attributable to the personal property of banks, exclusive of the property
taxes attributable to personal property leased by banks as the lessor where the possession of the
personal property is transferred to the lessee.
(d) The amount of the supplemental distribution for a county for a year shall be determined using the
following formula:
STEP ONE: Determine the greater of zero (0) or the difference between:
(A) one-half (1/2) of the taxes that the department estimates will be paid under this article during
the year; minus
(B) the sum of all the guaranteed distributions, before the subtraction of all state welfare
allocations and tuition support allocations under subsection (b), for all taxing units in all counties
plus the bank personal property taxes to be received by all taxing units in all counties, as
determined under subsection (c)(2) for the year.
STEP TWO: Determine the quotient of:
(A) the amount received under IC 6-5-10 (repealed) and IC 6-5-11 (repealed) in 1989 by all
taxing units in the county; divided by
(B) the sum of the amounts received under IC 6-5-10 (repealed) and IC 6-5-11 (repealed) in 1989
by all taxing units in all counties.
STEP THREE: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by
(B) the amount determined in STEP TWO.
STEP FOUR: Determine the greater of zero (0) or the difference between:
(A) the amount of supplemental distribution determined in STEP THREE for the county; minus
(B) the amount of refunds granted under IC 6-5-10-7 (repealed) that have yet to be reimbursed
to the state by the county treasurer under IC 6-5-10-13 (repealed).
For the supplemental distribution made on or before August 1 of each year, the department shall adjust
the amount of each county's supplemental distribution to reflect the actual taxes paid under this article
for the preceding year.
(e) Except as provided in subsections (g) and (h), the amount of the supplemental distribution for each
taxing unit shall be determined using the following formula:
STEP ONE: Determine the quotient of:
(A) the amount received by the taxing unit under IC 6-5-10 (repealed) and IC 6-5-11 (repealed)
in 1989; divided by
(B) the sum of the amounts used in STEP ONE (A) for all taxing units located in the county.
STEP TWO: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by
(B) the supplemental distribution for the county, as determined in subsection (d), STEP FOUR.
(f) (b) The county auditor shall distribute the guaranteed and supplemental distributions received under
subsection (a) to the taxing units in the county at the same time that the county auditor makes the
semiannual distribution of real property taxes to the taxing units.
(g) The amount of a supplemental distribution paid to a taxing unit that is a county shall be reduced
by an amount equal to:
(1) an amount equal to:
for periods of less than thirty (30) days. The ordinance must specify that the tax expires December 31,
2027.
(b) Except as provided in subsection (c), the county supplemental auto rental excise tax that may be
imposed upon the rental of a passenger motor vehicle or truck equals two percent (2%) of the gross retail
income received by the retail merchant for the rental.
(c) On or before June 30, 2005, the city-county council may, by ordinance adopted by a majority of
the members elected to the city-county council, increase the tax imposed under subsection (a) from two
percent (2%) to four percent (4%). The ordinance must specify that:
(1) if on December 31, 2027, there are obligations owed by the capital improvement board of
managers to the Indiana stadium and convention building authority or any state agency under
IC 5-1-17-26, the original two percent (2%) rate imposed under subsection (a) continues to be levied
after its original expiration date set forth in subsection (a) and through December 31, 2040; and
(2) the additional rate authorized under this subsection expires on:
(A) January 1, 2041;
(B) January 1, 2010, if on that date there are no obligations owed by the capital improvement
board of managers to the Indiana stadium and convention building authority or to any state
agency under IC 5-1-17-26; or
(C) October 1, 2005, if on that date there are no obligations owed by the capital improvement
board of managers to the Indiana stadium and convention building authority or to any state
agency under a lease or a sublease of an existing capital improvement entered into under
IC 5-1-17, unless waived by the budget director.
(d) The amount collected from that portion of county supplemental auto rental excise tax imposed
under:
(1) subsection (b) and collected after December 31, 2027; and
(2) under subsection (c);
shall, in the manner provided by section 11 of this chapter, be distributed to the capital improvement
board of managers operating in a consolidated city or its designee. So long as there are any current or
future obligations owed by the capital improvement board of managers to the Indiana stadium and
convention building authority created by IC 5-1-17 or any state agency pursuant to a lease or other
agreement entered into between the capital improvement board of managers and the Indiana stadium and
convention building authority or any state agency under IC 5-1-17-26, the capital improvement board of
managers or its designee shall deposit the revenues received under this subsection in a special fund, which
may be used only for the payment of the obligations described in this subsection.
(e) After January 1, 2013, and before March 1, 2013, the city-county council may, by ordinance
adopted by a majority of the members elected to the city-county council, increase the tax rate imposed
under subsection (a) by not more than two percent (2%). The amount collected from an increase adopted
under this subsection shall be deposited in the sports and convention facilities operating fund established
by IC 36-7-31-16. An increase in the tax rate under this subsection continues in effect unless the
increase is rescinded. However, any increase in the tax rate under this subsection may not continue
in effect after February 28, 2023.
(f) If a city-county council adopts an ordinance under subsection (a), (c), or (e), the city-county council
shall immediately send a certified copy of the ordinance to the commissioner of the department of state
revenue.
(g) If a city-county council adopts an ordinance under subsection (a), (c), or (e) on or before the
fifteenth day of a month, the county supplemental auto rental excise tax applies to auto rentals after the
last day of the month in which the ordinance is adopted. If the city-county council adopts an ordinance
under subsection (a), (c), or (e) after the fifteenth day of a month, the county supplemental auto rental
excise tax applies to auto rentals after the last day of the month following the month in which the
ordinance is adopted.
relative risk between such products and cigarettes.
upon receipt of a written request from either director for the information. The information shall be treated
as confidential by the directors. In addition, the information described in subsection (a) relating to a
person who has been designated as an absent parent by the state Title IV-D agency shall be made
available to the state Title IV-D agency upon request. The information shall be subject to the information
safeguarding provisions of the state and federal Title IV-D programs.
(d) The name, address, Social Security number, and place of employment relating to any individual
who is delinquent in paying educational loans owed to a postsecondary educational institution may be
revealed to that institution if it provides proof to the department that the individual is delinquent in paying
for educational loans. This information shall be provided free of charge to approved postsecondary
educational institutions (as defined by IC 21-7-13-6(a)). The department shall establish fees that all other
institutions must pay to the department to obtain information under this subsection. However, these fees
may not exceed the department's administrative costs in providing the information to the institution.
(e) The information described in subsection (a) relating to reports submitted under IC 6-6-1.1-502
concerning the number of gallons of gasoline sold by a distributor and IC 6-6-2.5 concerning the number
of gallons of special fuel sold by a supplier and the number of gallons of special fuel exported by a
licensed exporter or imported by a licensed transporter may be released by the commissioner upon receipt
of a written request for the information.
(f) The information described in subsection (a) may be revealed upon the receipt of a written request
from the administrative head of a state agency of Indiana when:
(1) the state agency shows an official need for the information; and
(2) the administrative head of the state agency agrees that any information released will be kept
confidential and will be used solely for official purposes.
(g) The information described in subsection (a) may be revealed upon the receipt of a written request
from the chief law enforcement officer of a state or local law enforcement agency in Indiana when it is
agreed that the information is to be confidential and to be used solely for official purposes.
(h) The name and address of retail merchants, including township, as specified in IC 6-2.5-8-1(j) may
be released solely for tax collection purposes to township assessors and county assessors.
(i) The department shall notify the appropriate innkeepers' tax board, bureau, or commission that a
taxpayer is delinquent in remitting innkeepers' taxes under IC 6-9.
(j) All information relating to the delinquency or evasion of the motor vehicle excise tax may be
disclosed to the bureau of motor vehicles in Indiana and may be disclosed to another state, if the
information is disclosed for the purpose of the enforcement and collection of the taxes imposed by
IC 6-6-5.
(k) All information relating to the delinquency or evasion of commercial vehicle excise taxes payable
to the bureau of motor vehicles in Indiana may be disclosed to the bureau and may be disclosed to another
state, if the information is disclosed for the purpose of the enforcement and collection of the taxes
imposed by IC 6-6-5.5.
(l) All information relating to the delinquency or evasion of commercial vehicle excise taxes payable
under the International Registration Plan may be disclosed to another state, if the information is disclosed
for the purpose of the enforcement and collection of the taxes imposed by IC 6-6-5.5.
(m) All information relating to the delinquency or evasion of the excise taxes imposed on recreational
vehicles and truck campers that are payable to the bureau of motor vehicles in Indiana may be disclosed
to the bureau and may be disclosed to another state if the information is disclosed for the purpose of the
enforcement and collection of the taxes imposed by IC 6-6-5.1.
(n) This section does not apply to:
(1) the beer excise tax, including brand and packaged type (IC 7.1-4-2);
(2) the liquor excise tax (IC 7.1-4-3);
(3) the wine excise tax (IC 7.1-4-4);
READ AS FOLLOWS [EFFECTIVE MAY 15, 2013]: Sec. 2. (a) This article contains full and complete
authority for public-private agreements between the authority and a private entity. Except as provided in
this article, no law, procedure, proceeding, publication, notice, consent, approval, order, or act by the
authority or any other officer, department, agency, or instrumentality of the state or any political
subdivision is required for the authority to enter into a public-private agreement with a private entity
under this article, or for a toll road project that is the subject of a public-private agreement to be
constructed, acquired, maintained, repaired, operated, financed, transferred, or conveyed.
(b) Before the authority or the department may issue a request for proposals for or enter into a
public-private agreement under this article that would authorize an operator to impose tolls for the
operation of motor vehicles on all or part of a toll road project, the general assembly must adopt a statute
authorizing the imposition of tolls. However, during the period beginning July 1, 2011, and ending June
30, 2021, and notwithstanding subsection (c), the general assembly is not required to enact a statute
authorizing the authority or the department to issue a request for proposals or enter into a public-private
agreement to authorize an operator to impose tolls for the operation of motor vehicles on all or part of the
following projects:
(1) A project on which construction begins after June 30, 2011, not including any part of Interstate
Highway 69 other than a part described in subdivision (4).
(2) The addition of toll lanes, including high occupancy toll lanes, to a highway, roadway, or other
facility in existence on July 1, 2011, if the number of nontolled lanes on the highway, roadway, or
facility as of July 1, 2011, does not decrease due to the addition of the toll lanes.
(3) The Illiana Expressway, a limited access facility connecting Interstate Highway 65 in
northwestern Indiana with an interstate highway in Illinois.
(4) A project that is located within a metropolitan planning area (as defined by 23 U.S.C. 134) and
that connects the state of Indiana with the commonwealth of Kentucky.
(c) Before the authority or an operator may carry out any of the following activities under this article,
the general assembly must enact a statute authorizing that activity:
(1) Carrying out construction for Interstate Highway 69 in a township having a population of more
than one hundred thousand (100,000) and less than one hundred ten thousand (110,000) located in
a county having a consolidated city.
(2) Imposing tolls on motor vehicles for use of Interstate Highway 69.
(3) Imposing tolls on motor vehicles for use of a nontolled highway, roadway, or other facility in
existence or under construction on July 1, 2011, including nontolled interstate highways, U.S. routes,
and state routes.
(d) Except as provided in subsection (c)(1), the general assembly is not required to enact a statute
authorizing the authority or the department to issue a request for proposals or enter into a
public-private agreement for a freeway project.
include a request for qualifications.
criminal, civil, or regulatory claims or actions against the responsible offeror.
(c) The requirements set forth in subsection (b) also apply to the approval by the authority of any
successor or replacement operator under the public-private agreement after the execution of the
public-private agreement under section 11 of this chapter.
(d) In making its determination under subsection (b) or (c), the authority shall consider the offeror or
operator as well as any private entity that controls the actions of the offeror or operator.
road project. The authority shall publish notice of the designation of the operator for the related toll road
project one (1) time, in accordance with IC 5-3-1.
(c) After the designation of the operator for the related toll road project, the authority may execute the
public-private agreement with that operator.
(d) The budget committee shall hold a meeting and conduct a review of the determination not later
than ninety (90) days after the date the authority's determination is submitted for review.
or extended in sections as determined by the authority. Each separate section must be separately
designated by a name or number, which must also apply to any freeway project to subsequently
improve, better, enlarge, extend, or reconstruct the section.
under this article, including, but not limited to, all environmental permits and business and tax
licenses; and
(2) provide other services for which the authority is reimbursed, including, but not limited to,
preliminary planning, environmental certification (including the procurement of all necessary
environmental permits), and preliminary design of toll road projects under this article.
road project that is the subject of a public-private agreement to exercise their powers and jurisdiction.
in St. Joseph County from the U.S. Highway 20 bypass to State Road 23 as a limited access facility. The
designated highway shall be in operation as a limited access facility beginning not later than January 1,
2009.
(c) Neither the department nor any political subdivision may authorize any additional curb cuts or
intersections after January 1, 2009, on the designated highway. The department shall limit intersections
on the designated highway to the following locations:
(1) U.S. Highway 20 bypass.
(2) Ireland Road.
(3) Dragoon Trail.
(4) Twelfth Street (also known as Harrison Road).
(5) Indiana 933 (also known as Lincoln Way).
(6) Jefferson Boulevard.
(7) McKinley Highway.
(8) Day Road.
(9) Douglas Road.
(10) Cleveland Road.
(11) Joseph D. Zappia Boulevard directly across from The Indiana Toll Road interchange and the
street or road directly across from the Indiana Toll Road Interchange.
(12) State Road 23.
(d) No traffic signal may be erected at the intersection described in subsection (c)(2).
requirements of 42 U.S.C. 5119a and any other applicable federal law or regulation regarding:
(1) notification to the subject of the check; and
(2) the use of the results obtained based on the check of the person's fingerprints.
(d) If an out-of-home placement is denied as the result of a national name based criminal history record
check, an individual who is the subject of the name based criminal history record check may contest the
denial by submitting to the department of child services, the caseworker, or the juvenile probation officer:
(1) a complete set of the individual's fingerprints; and
(2) written authorization permitting the department of child services, the caseworker, or the juvenile
probation officer to forward the fingerprints to the department for submission to the Federal Bureau
of Investigation;
not later than five (5) days after the out-of-home placement is denied.
(e) The:
(1) department; and
(2) Federal Bureau of Investigation;
may charge a reasonable fee for processing a national name based criminal history record check. The
department shall adopt rules under IC 4-22-2 to establish a reasonable fee for processing a national name
based criminal history record check and for collecting fees owed under this subsection.
(f) The:
(1) department of child services, for an out-of-home placement arranged by a caseworker or the
department of child services; or
(2) juvenile court, for an out-of-home placement ordered by the juvenile court;
shall pay the fee described in subsection (e), arrange for fingerprinting, and pay the costs of
fingerprinting, if any.
provided plus four percent (4%).
(d) If there is no federal Medicare reimbursement rate for a health care service described in subsection
(c), the department shall do the following:
(1) If the health care service is provided by a hospital, the department shall reimburse the hospital
an amount equal to sixty-five percent (65%) of the amount charged by the hospital according to the
hospital's charge description master.
(2) If the health care service is provided by a physician or another health care provider, the
department shall reimburse the physician or health care provider an amount equal to sixty-five
percent (65%) of the amount charged by the physician or health care provider.
(e) This section expires July 1, 2013.
SECTION 170. IC 11-10-3-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. If the department or a county incurs
medical care expenses in providing medical care to an inmate who is committed to the department
and the medical care expenses are not reimbursed, the department or the county shall attempt to
determine the amount, if any, of the medical care expenses that may be paid:
(1) by a policy of insurance that is maintained by the inmate and that covers medical care,
dental care, eye care, or any other health care related service; or
(2) by Medicaid.
hospital in the state plan for medical assistance. Payment to a hospital under STEP FIVE of subsection
(b) is not a condition precedent to the tender of payments to hospitals under STEP SEVEN of subsection
(b).
the outpatient hospital services identified in STEP ONE.
STEP FOUR: Subtract the amount calculated under STEP TWO from the amount calculated under
STEP THREE.
STEP FIVE: Distribute an amount equal to the amount calculated under STEP FOUR to the eligible
hospitals described in subsection (a) as follows:
(A) As used in this clause, "Medicaid inpatient days" are the hospital's in-state paid Medicaid fee
for service and risk-based managed care days for the state fiscal year for which services are
identified under STEP ONE, as determined by the office. Subject to the availability of funds
transferred to the Medicaid indigent care trust fund under STEP FOUR of IC 12-16-7.5-4.5(c)
and remaining in the Medicaid indigent care trust fund under IC 12-15-20-2(8)(G) to serve as the
nonfederal share of the payments, the amount calculated under STEP FOUR for a state fiscal year
shall be paid to all hospitals described in subsection (a). The payments shall be made on a pro
rata basis, based on the hospitals' Medicaid inpatient days or in accordance with another payment
methodology determined by the office and approved by the Centers for Medicare and Medicaid
Services.
(B) Subject to IC 12-15-20.7, if the entire amount calculated under STEP FOUR is not distributed
following the payments made under clause (A), the remaining amount shall be paid as described
in clauses (C) and (D) to a hospital that is described in subsection (a) and that is described as
eligible under this clause. A hospital is eligible for a payment under clause (C) only if the
hospital:
(i) has less than sixty thousand (60,000) Medicaid inpatient days annually;
(ii) was eligible for Medicaid disproportionate share hospital payments in the state fiscal year
ending June 30, 1998, or the hospital met the office's Medicaid disproportionate share payment
criteria based upon state fiscal year 1998 data and received a Medicaid disproportionate share
payment for the state fiscal year ending June 30, 2001; and
(iii) received a Medicaid disproportionate share payment under IC 12-15-19-2.1 for state fiscal
years 2001, 2002, 2003, and 2004.
The payment amount under clause (C) for an eligible hospital is subject to the availability of the
nonfederal share of the hospital's payment being provided by the hospital or on behalf of the
hospital.
(C) For state fiscal years ending after June 30, 2007, but before July 1, 2009, payments to eligible
hospitals described in clause (B) shall be made as follows:
(i) The payment to an eligible hospital that merged two (2) hospitals under a single Medicaid
provider number effective January 1, 2004, shall equal one hundred percent (100%) of the
hospital's hospital-specific limit for the state fiscal year ending June 30, 2005, when the
payment is combined with any Medicaid disproportionate share payment made under
IC 12-15-19-2.1, Medicaid, and other Medicaid supplemental payments, paid or to be paid to
the hospital for a state fiscal year.
(ii) The payment to an eligible hospital described in clause (B) other than a hospital described
in item (i) shall equal one hundred percent (100%) of the hospital's hospital specific limit for
the state fiscal year ending June 30, 2004, when the payment is combined with any Medicaid
disproportionate share payment made under IC 12-15-19-2.1, Medicaid, and other Medicaid
supplemental payments, paid or to be paid to the hospital for a state fiscal year.
(D) For state fiscal years beginning after June 30, 2009, payments to an eligible hospital
described in clause (B) shall be made in a manner determined by the office.
(E) Subject to IC 12-15-20.7, if the entire amount calculated under STEP FOUR is not distributed
following the payments made under clause (A) and clauses (C) or (D), the remaining amount may
be paid as described in clause (F) to a hospital described in subsection (a) that is described as
eligible under this clause. A hospital is eligible for a payment for a state fiscal year under clause
(F) if the hospital:
(i) is eligible to receive Medicaid disproportionate share payments for the state fiscal year for
which the Medicaid disproportionate share payment is attributable under IC 12-15-19-2.1, for
a state fiscal year ending after June 30, 2007; and
(ii) does not receive a payment under clauses (C) or (D) for the state fiscal year.
A payment to a hospital under this clause is subject to the availability of nonfederal matching
funds.
(F) Payments to eligible hospitals described in clause (E) shall be made:
(i) to best use federal matching funds available for hospitals that are eligible for Medicaid
disproportionate share payments under IC 12-15-19-2.1; and
(ii) by using a methodology that allocates available funding under this clause, Medicaid
supplemental payments, and payments under IC 12-15-19-2.1, in a manner in which all
hospitals eligible under clause (E) receive payments in a manner that takes into account the
situation of eligible hospitals that have historically qualified for Medicaid disproportionate
share payments and ensures that payments for eligible hospitals are equitable.
(G) If the Centers for Medicare and Medicaid Services does not approve the payment
methodologies in clauses (A) through (F), the office may implement alternative payment
methodologies that are eligible for federal financial participation to implement a program
consistent with the payments for hospitals described in clauses (A) through (F).
(d) A hospital described in subsection (a) may appeal under IC 4-21.5 the amount determined by the
office to be paid to the hospital under STEP FIVE of subsections (b) or (c). The distribution to other
hospitals under STEP FIVE of subsection (b) or (c) may not be delayed due to an administrative appeal
or judicial review instituted by a hospital under this subsection. If necessary, the office may make a partial
distribution to the other eligible hospitals under STEP FIVE of subsection (b) or (c) pending the
completion of a hospital's administrative appeal or judicial review, at which time the remaining portion
of the payments due to the eligible hospitals shall be made. A partial distribution may be based on
estimates and trends calculated by the office.
the amount each hospital would have received under section 1.5(b) STEP FIVE (B) of this chapter
for that state fiscal year.
(d) If the office determines that payments made under section 1.5(b) STEP FIVE (C) of this chapter
will not be approved for federal financial participation, the office may make alternative payments to
payments under section 1.5(b) STEP FIVE (C) of this chapter if:
(1) the payments for a state fiscal year are made only to a hospital that would have been eligible for
a payment for that state fiscal year under section 1.5(b) STEP FIVE (C) of this chapter; and
(2) the payments for a state fiscal year to each hospital are an amount that is as equal as possible to
the amount each hospital would have received under section 1.5(b) STEP FIVE (C) of this chapter
for that state fiscal year.
(e) If the office determines, based on information received from the United States Centers for Medicare
and Medicaid Services, that payments made under subsection (b), (c), or (d) will not be approved for
federal financial participation, the office shall use the funds that would have served as the nonfederal
share of these payments for a state fiscal year to serve as the nonfederal share of a payment program for
hospitals to be established by the office. The payment program must distribute payments to hospitals for
a state fiscal year based upon a methodology determined by the office to be equitable under the
circumstances.
hospital to an individual who qualifies for the hospital care for the indigent program under IC 12-16-3.5-1
or IC 12-16-3.5-2 and:
(1) who is a resident of the county;
(2) who is not a resident of the county and for whom the onset of the medical condition that
necessitated the care occurred in the county; or
(3) whose residence cannot be determined by the division and for whom the onset of the medical
condition that necessitated the care occurred in the county.
This section does not apply during the period that the office is assessing a hospital fee authorized by HEA
1001-2011. IC 16-21-10.
(b) For each state fiscal year ending after June 30, 2003, but before July 1, 2007, a hospital licensed
under IC 16-21-2:
(1) that submits to the division during the state fiscal year a payable claim under IC 12-16-7.5; and
(2) whose payment under section 9(c) of this chapter was less than the total amount of the hospital's
payable claims under IC 12-16-7.5 submitted by the hospital to the division during the state fiscal
year;
is entitled to a payment under subsection (c).
(c) Subject to section 9.6 of this chapter, for a state fiscal year, the office shall pay to a hospital
referred to in subsection (b) an amount equal to the amount, based on information obtained from the
division and the calculations and allocations made under IC 12-16-7.5-4.5, that the office determines for
the hospital under STEP EIGHT of the following STEPS:
STEP ONE: Identify each county whose transfer of funds to the Medicaid indigent care trust fund
under IC 12-16-7.5-4.5 for the state fiscal year was less than the total amount of all hospital payable
claims attributed to the county and submitted to the division during the state fiscal year.
STEP TWO: For each county identified in STEP ONE, calculate the difference between the amount
of funds of the county transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5
and the total amount of all hospital payable claims attributed to the county and submitted to the
division during the state fiscal year.
STEP THREE: Calculate the sum of the amounts calculated for the counties under STEP TWO.
STEP FOUR: Identify each hospital whose payment under section 9(c) of this chapter was less than
the total amount of the hospital's payable claims under IC 12-16-7.5 submitted by the hospital to the
division during the state fiscal year.
STEP FIVE: Calculate for each hospital identified in STEP FOUR the difference between the
hospital's payment under section 9(c) of this chapter and the total amount of the hospital's payable
claims under IC 12-16-7.5 submitted by the hospital to the division during the state fiscal year.
STEP SIX: Calculate the sum of the amounts calculated for each of the hospitals under STEP FIVE.
STEP SEVEN: For each hospital identified in STEP FOUR, calculate the hospital's percentage share
of the amount calculated under STEP SIX. Each hospital's percentage share is based on the amount
calculated for the hospital under STEP FIVE calculated as a percentage of the sum calculated under
STEP SIX.
STEP EIGHT: For each hospital identified in STEP FOUR, multiply the hospital's percentage share
calculated under STEP SEVEN by the sum calculated under STEP THREE. The amount calculated
under this STEP for a hospital may not exceed the amount by which the hospital's total payable
claims under IC 12-16-7.5 submitted during the state fiscal year exceeded the amount of the
hospital's payment under section 9(c) of this chapter.
(d) For state fiscal years beginning after June 30, 2007, a hospital that received a payment determined
under STEP EIGHT of subsection (c) for the state fiscal year ending June 30, 2007, shall be paid an
amount equal to the amount determined for the hospital under STEP EIGHT of subsection (c) for the state
fiscal year ending June 30, 2007.
day utilization rate and total Medicaid patient days, as determined based on data from the most recent
audited cost report on file with the office. Payments under this subdivision are in place of the payments
made under subdivisions (1) and (2).
(c) This subsection does not apply during the period that the office is assessing a hospital fee
authorized by HEA 1001-2011. IC 16-21-10. Other institutions that qualify as disproportionate share
providers under section 1 of this chapter, in each state fiscal year, shall receive disproportionate share
payments as follows:
(1) For each of the state fiscal years ending after June 30, 1995, a pool not exceeding two million
dollars ($2,000,000) shall be distributed to all private psychiatric institutions licensed under
IC 12-25 that qualify under section 1(a)(1) or 1(a)(2) of this chapter. The funds in the pool must be
distributed to the qualifying institutions in proportion to each institution's Medicaid day utilization
rate as determined based on data from the most recent audited cost report on file with the office.
(2) A pool not exceeding one hundred ninety-one million dollars ($191,000,000) for all state fiscal
years ending after June 30, 1995, shall be distributed to all state mental health institutions under
IC 12-24-1-3 that qualify under either section 1(a)(1) or 1(a)(2) of this chapter. The funds in the pool
must be distributed to each qualifying institution in proportion to each institution's low income
utilization rate, as determined based on the most recent data on file with the office.
(d) This subsection does not apply during the period that the office is assessing a hospital fee
authorized by HEA 1001-2011. IC 16-21-10. Disproportionate share payments described in this section
shall be made on an interim basis throughout the year, as provided by the office.
SECTION 197. IC 12-15-16-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) This section applies to Medicaid
disproportionate share payments for the state fiscal year beginning:
(1) July 1, 2012, if hospital fees authorized under P.L.229-2011, SECTION 281 or authorized
to be transferred and used for payments are used as state share dollars for the payments; and
(2) July 1, 2013, and for each state fiscal year after, for which hospital fees authorized under
IC 16-21-10 are used as state share dollars for the payments.
(b) As used in this section, "hospital assessment fee committee" refers to the committee
established by IC 16-21-10-7.
(c) As used in this section, "hospital specific limit" refers to the hospital specific limit provided
under 42 U.S.C. 1396r-4(g).
(d) As used in this section, "municipal hospital payment amount" means, concerning a hospital
established and operated under IC 16-22-2 or IC 16-23, an amount equal to the lesser of:
(1) the hospital specific limit for the hospital for the state fiscal year; or
(2) the hospital's net 2009 supplemental payment amount.
(e) As used in this section, "nongovernmental hospital" refers to a hospital that is licensed under
IC 16-21-2 that is not a unit of state or local government and is not owned or operated by a unit of
state or local government.
(f) As used in this section, "SECTION 281 hospital assessment fee committee" refers to the
hospital assessment fee committee established by P.L.229-2011, SECTION 281, subsection (e).
(g) The following providers are eligible for Medicaid disproportionate share payments under this
section:
(1) A hospital or psychiatric institution described in Attachment 4.19-A, Section III, page
6.1(a) of the Medicaid state plan in effect July 1, 2011.
(2) A hospital that satisfies the following for the state fiscal year for which Medicaid
disproportionate share payments are made under this section:
(A) A nongovernmental hospital that:
(i) has a Medicaid inpatient utilization rate for the state fiscal year that is at least equal
to the mean Medicaid inpatient utilization rate as calculated for purposes of determining
Medicaid disproportionate share eligibility, but does not equal or exceed one (1) standard
deviation above the mean Medicaid inpatient utilization rate; and
(ii) satisfies the obstetric service provisions of 42 U.S.C. 1396r-4(d).
(B) A hospital established and operated under IC 16-22-2 or IC 16-23 that:
(i) has a Medicaid inpatient utilization rate for the state fiscal year greater than one
percent (1%); and
(ii) satisfies the obstetric service provisions of 42 U.S.C. 1396r-4(d).
(3) A nongovernmental hospital that satisfies the following for the state fiscal year for which
Medicaid disproportionate share payments are made under this section:
(A) The hospital has a Medicaid inpatient utilization rate for the state fiscal year that is less
than the mean Medicaid inpatient utilization rate, as calculated for purposes of determining
Medicaid disproportionate share eligibility, but is at least greater than one percent (1%).
(B) The hospital satisfies the obstetric service provisions of 42 U.S.C. 1396r-4(d).
(h) This subsection applies to a payment of Medicaid disproportionate share payments, if any,
to hospitals described in subsection (g)(2) and (g)(3). For Medicaid disproportionate share
payments for the state fiscal year beginning July 1, 2012, the office, subject to approval by the
SECTION 281 hospital assessment fee committee, may develop and implement a Medicaid state
plan amendment that provides Medicaid disproportionate share payments for the hospitals
described in:
(1) subsection (g)(2), as long as each hospital and psychiatric institution described in subsection
(g)(1) has received a Medicaid disproportionate share payment for the state fiscal year in an
amount equal to either:
(A) the hospital specific limit; or
(B) the municipal hospital payment amount;
for the hospital or psychiatric institution for the state fiscal year; and
(2) subsection (g)(3), as long as each hospital described in subsection (g)(2) has received a
Medicaid disproportionate share payment for the state fiscal year in an amount equal to the
hospital specific limit for the hospital for the state fiscal year.
(i) This subsection applies to a payment of Medicaid disproportionate share payments, if any,
to hospitals described in subsection (g)(2) and (g)(3). For Medicaid disproportionate share
payments for the state fiscal year beginning July 1, 2013, and each state fiscal year thereafter under
this section, the office, subject to the approval by the hospital assessment fee committee, may
develop and implement a Medicaid state plan amendment that:
(1) renews, for state fiscal year beginning July 1, 2013, and each state fiscal year thereafter
under this section, the Medicaid disproportionate share provisions of Attachment 4.19-A,
Section III, page 6.1(a) of the Medicaid state plan in effect on July 1, 2011;
(2) provides Medicaid disproportionate share payments for the hospitals described in
subsection (g)(2), as long as each hospital and psychiatric institution described in subsection
(g)(1) has received a Medicaid disproportionate share payment for the state fiscal year in an
amount equal to the:
(A) hospital specific limit; or
(B) municipal hospital payment amount;
for the hospital or psychiatric institution for the state fiscal year; and
(3) provides Medicaid disproportionate share payments for the hospitals described in
subsection (g)(3), as long as each hospital described in subsection (g)(2) has received a
Medicaid disproportionate share payment for the state fiscal year in an amount equal to the
hospital specific limit of the hospital for the state fiscal year.
(j) This subsection does not apply to Medicaid disproportionate share payments made to
hospitals described in subsection (g)(2)(B) under Attachment 4.19-A, Section III, page 6.1(a) of the
Medicaid state plan in effect on July 1, 2011, or any renewal. Nothing in this section:
(1) requires that the hospitals described in subsection (g)(2) or (g)(3) receive Medicaid
disproportionate share payments for a state fiscal year;
(2) requires that the hospital described in subsection (g)(2) or (g)(3) receive Medicaid
disproportionate share payments for a state fiscal year in an amount equal to the respective
hospital specific limits for the state fiscal year; or
(3) prescribes how Medicaid disproportionate share payments are to be distributed among the
hospitals described in:
(A) subsection (g)(2); or
(B) subsection (g)(3).
(k) Nothing in this section prohibits the use of unexpended federal Medicaid disproportionate
share allotments for a state fiscal year under a program authorized by the SECTION 281 hospital
assessment fee committee or the hospital assessment fee committee, as long as each hospital listed
in subsection (g)(1), (g)(2), and (g)(3) has received Medicaid disproportionate share payments for
the state fiscal year equal to the hospital specific limit for the hospital for the state fiscal year.
Services that, as provided in 42 CFR 447.297(d)(3), allows the state to make additional disproportionate
share expenditures after the end of each federal fiscal year that relate back to a prior federal fiscal year.
However, the total disproportionate share payments to:
(1) each individual hospital; and
(2) all qualifying hospitals in the aggregate;
may not exceed the limits provided by federal law and regulation.
IC 12-15-15-9.5 shall not exceed the amount provided in clause (G)(ii).
(F) As provided in clause (D), for the following:
(i) Each state fiscal year ending after June 30, 2003, but before July 1, 2005, an amount equal
to the amount calculated under STEP THREE of the following formula shall be transferred to
the office:
STEP ONE: Calculate the product of thirty-five million dollars ($35,000,000) multiplied by the
federal medical assistance percentage for federal fiscal year 2003.
STEP TWO: Calculate the sum of the amounts, if any, reasonably estimated by the office to be
transferred or otherwise made available to the office for the state fiscal year, and the amounts,
if any, actually transferred or otherwise made available to the office for the state fiscal year,
under arrangements whereby the office and a hospital licensed under IC 16-21-2 agree that an
amount transferred or otherwise made available to the office by the hospital or on behalf of the
hospital shall be included in the calculation under this STEP.
STEP THREE: Calculate the amount by which the product calculated under STEP ONE exceeds
the sum calculated under STEP TWO.
(ii) The state fiscal years ending after June 30, 2005, but before July 1, 2007, an amount equal
to thirty million dollars ($30,000,000) shall be transferred to the office.
(G) Subject to IC 12-15-20.7-2(b), for each state fiscal year ending after June 30, 2007, the total
amount in the Medicaid indigent care trust fund, including the amount of intergovernmental
transfers of funds transferred, and the amounts of certifications of expenditures eligible for
federal financial participation deemed to be transferred, to the Medicaid indigent care trust fund,
shall be used to fund the following:
(i) Thirty million dollars ($30,000,000) transferred to the office for the Medicaid budget.
(ii) An amount not to exceed the non-federal share of payments to hospitals under
IC 12-15-15-9 and IC 12-15-15-9.5.
(iii) An amount not to exceed the non-federal share of payments to hospitals made under
IC 12-15-15-1.1 and IC 12-15-15-1.3.
(iv) An amount not to exceed the non-federal share of disproportionate share payments to
hospitals under IC 12-15-19-8.
(v) An amount not to exceed the non-federal share of payments to hospitals under clause (A)
of STEP FIVE of IC 12-15-15-1.5(c).
(vi) An amount not to exceed the non-federal share of Medicaid safety-net payments.
(vii) An amount not to exceed the non-federal share of payments to hospitals made under
clauses (C) or (D) of STEP FIVE of IC 12-15-15-1.5(c).
(viii) An amount not to exceed the non-federal share of payments to hospitals made under
clause (F) of STEP FIVE of IC 12-15-15-1.5(c).
(ix) An amount not to exceed the non-federal share of disproportionate share payments to
hospitals under IC 12-15-19-2.1.
(x) If additional funds are available after making payments under items (i) through (ix), to fund
other Medicaid supplemental payments for hospitals approved by the office and included in
the Medicaid state plan.
Items (ii) through (x) do not apply during the period that the office is assessing a hospital fee
authorized by HEA 1001-2011. IC 16-21-10.
(H) This clause does not apply during the period that the office is assessing a hospital fee
authorized by HEA 1001-2011. IC 16-21-10. For purposes of clause (D)(vi), the office shall fund
the following:
(i) An amount equal to the non-federal share of the payments to the hospital that is eligible
under this item, for payments made under clause (C) of STEP FIVE of IC 12-15-15-1.5(b)
under an agreement with the office, Medicaid safety-net payments and any payment made
under IC 12-15-19-2.1. The amount of the payments to the hospital under this item shall be
equal to one hundred percent (100%) of the hospital's hospital-specific limit for state fiscal year
2005, when the payments are combined with payments made under IC 12-15-15-9,
IC 12-15-15-9.5, and clause (B) of STEP FIVE of IC 12-15-15-1.5(b) for a state fiscal year. A
hospital is eligible under this item if the hospital was eligible for Medicaid disproportionate
share hospital payments for the state fiscal year ending June 30, 1998, the hospital received a
Medicaid disproportionate share payment under IC 12-15-19-2.1 for state fiscal years 2001,
2002, 2003, and 2004, and the hospital merged two (2) hospitals under a single Medicaid
provider number, effective January 1, 2004.
(ii) An amount equal to the non-federal share of payments to hospitals that are eligible under
this item, for payments made under clause (C) of STEP FIVE of IC 12-15-15-1.5(b) under an
agreement with the office, Medicaid safety-net payments, and any payment made under
IC 12-15-19-2.1. The amount of payments to each hospital under this item shall be equal to one
hundred percent (100%) of the hospital's hospital-specific limit for state fiscal year 2004, when
the payments are combined with payments made to the hospital under IC 12-15-15-9,
IC 12-15-15-9.5, and clause (B) of STEP FIVE of IC 12-15-15-1.5(b) for a state fiscal year. A
hospital is eligible under this item if the hospital did not receive a payment under item (i), the
hospital has less than sixty thousand (60,000) Medicaid inpatient days annually, the hospital
either was eligible for Medicaid disproportionate share hospital payments for the state fiscal
year ending June 30, 1998, or the hospital met the office's Medicaid disproportionate share
payment criteria based on state fiscal year 1998 data and received a Medicaid disproportionate
share payment for the state fiscal year ending June 30, 2001, and the hospital received a
Medicaid disproportionate share payment under IC 12-15-19-2.1 for state fiscal years 2001,
2002, 2003, and 2004.
(iii) Subject to IC 12-15-19-6, an amount not less than the non-federal share of Medicaid
safety-net payments in accordance with the Medicaid state plan.
(iv) An amount not less than the non-federal share of payments made under clause (C) of STEP
FIVE of IC 12-15-15-1.5(b) under an agreement with the office to a hospital having sixty
thousand (60,000) Medicaid inpatient days annually.
(v) An amount not less than the non-federal share of Medicaid disproportionate share payments
for hospitals eligible under this item, and made under IC 12-15-19-6 and the approved
Medicaid state plan. A hospital is eligible for a payment under this item if the hospital is
eligible for payments under IC 12-15-19-2.1.
(vi) If additional funds remain after the payments made under (i) through (v), payments
approved by the office and under the Medicaid state plan, to fund the non-federal share of other
Medicaid supplemental payments for hospitals.
information necessary for the board to conduct its review under subsection (a).
(c) The board shall report to the select joint commission on Medicaid oversight established by
IC 2-5-26-3 health finance commission established by IC 2-5-23-3 at least one (1) time per year on the
board's review under subsection (a).
established by IC 12-9-1-1.
(c) As used in this chapter, "waiver" refers to the federal Medicaid developmental disabilities home
and community based services waiver program that is administered by the office and the division.
(d) Before July 1, 2012, the division shall report orally and in writing to the commission for review
of a plan to reduce the aggregate and per capita cost of the waiver by implementing changes to the waiver,
which may include the following:
(1) Calculating budget neutrality on an individual rather than an aggregate basis.
(2) Instituting a family care program to provide recipients with another option for receiving services.
(3) Evaluating the current system to determine whether a group home or a waiver home is the most
appropriate use of resources for placement of the individual.
(4) Evaluating alternative placements for high cost individuals to ensure individuals are served in
the most integrated setting appropriate to the individual's needs and within the resources available
to the state.
(5) Migrating individuals from the waiver to a redesigned waiver that provides options to individuals
for receiving services and supports appropriate to meet the individual's needs and that are cost
effective and high quality and focus on social and health outcomes.
(6) Requiring cost participation by a recipient whose family income exceeds five hundred percent
(500%) of the federal income poverty level, factoring in medical expenses and personal care needs
expenses of the recipient.
(e) After the division makes the report required under subsection (d), the division may consult with
the office and take any action necessary to carry out the requirements of this section, including applying
to the federal Department of Health and Human Services for approval to amend the waiver.
services, including governmental agencies that administer the programs and services.
(3) Assess the capacity and effectiveness of two (2) and four (4) year public and private higher
education institutions in Indiana for the support of development of early educators, including:
(A) professional development and career advancement plans; and
(B) practice or internships with Head Start or prekindergarten programs.
(4) Recommend to the division procedures, policies, and eligibility criteria for the program.
(5) Other duties as determined necessary by the chairperson of the committee.
(b) Not later than June 30 of each year, the committee shall develop and make recommendations
to the governor and, in an electronic format under IC 5-14-6, to the legislative council concerning
the results of the committee's work under this section.
Sec. 10. The division shall administer an early education matching grant program in compliance
with this chapter. The division may establish procedures, forms, and standards to carry out this
chapter. The office of the secretary may adopt rules under IC 4-22-2 to carry out this chapter.
Sec. 11. (a) The early education matching grant program fund is established for the purpose of
providing matching grants to providers of eligible services. The fund shall be administered by the
division.
(b) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Grants and gifts that the state receives for the fund under terms, obligations, and liabilities
that the division considers appropriate.
(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 money may be invested. Interest that
accrues from these investments shall be deposited in the fund.
(d) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
The fund is a trust fund and may not be transferred to another fund under IC 4-9.1-1-7.
Sec. 12. The division shall establish an application process for grants from the fund.
Sec. 13. The division may award a grant from the fund to an applicant that:
(1) agrees to operate as an eligible provider;
(2) either:
(A) has obtained a matching gift or grant; or
(B) has a commitment for a matching gift or grant;
from any combination of foundations, other nonprofit entities, individuals, or for-profit
entities for the purposes of the applicant's program of eligible services;
(3) provides the division with a plan for use of the grant and any related matching funds that
demonstrates to the satisfaction of the division that use of the grant and related matching
funds will increase the number of eligible children receiving eligible services;
(4) enters into a written agreement with the division concerning the delivery of eligible services
and the use of a grant provided under this chapter, which incorporates the plan approved by
the division under subdivision (3); and
(5) provides to the division any other information that the division determines necessary or
appropriate for the grant.
Sec. 14. Foundations, nonprofit entities, individuals, and for-profit entities may contribute an
amount to the fund:
(1) for the purposes of providing a matching gift or grant described in section 13(2) of this
chapter; or
(2) as unrestricted funds.
Sec. 15. To qualify as an eligible child, the child must be:
(1) a member of a household with an annual income that does not exceed one hundred percent
(100%) of the federal poverty level;
for the programs must consist of the following:
(1) Fees paid under this chapter.
(2) The hospital care for the indigent funds allocated under section 10 of this chapter.
(3) Other sources of state share dollars available to the office, excluding intergovernmental
transfers of funds made by or on behalf of a hospital.
The money described in subdivisions (1) and (2) may be used only to fund the part of the payments
that exceed the Medicaid reimbursement rates in effect on June 30, 2011.
(d) This subsection applies to the programs described in subsection (a). If the state is unable to
maintain the funding under subsection (c)(3) for the payments at Medicaid reimbursement levels
in effect on June 30, 2011, because of budgetary constraints, the office shall reduce inpatient and
outpatient hospital Medicaid reimbursement rates under subsection (a)(1) or (a)(2) or request
approval from the committee and the United States Department of Health and Human Services to
increase the fee to prevent a decrease in Medicaid reimbursement for hospital services. If:
(1) the committee:
(A) does not approve a reimbursement reduction; or
(B) does not approve an increase in the fee; or
(2) the United States Department of Health and Human Services does not approve an increase
in the fee;
the office shall cease to collect the fee and the programs described in subsection (a) are terminated.
Sec. 9. (a) This section is effective upon implementation of the fee. The hospital Medicaid fee
fund is established for the purpose of holding fees collected under this chapter that are not
necessary to match federal funds.
(b) The office shall administer the fund.
(c) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
However, money remaining in the fund after the cessation of the collection of the fee under section
6(b) of this chapter shall be used for the payments described in sections 8(a) and 11 of this chapter.
Any money not required for the payments described in sections 8(a) and 11 of this chapter after the
cessation of the collection of the fee under section 6(b) of this chapter shall be distributed to the
hospitals on a pro rata basis based upon the fees paid by each hospital for the state fiscal year that
ended immediately before the cessation of the collection of the fee under section 6(b) of this chapter.
Sec. 10. This section:
(1) is effective upon implementation of the fee; and
(2) does not apply to funds under IC 12-16-17.
Notwithstanding any other law, the part of the amounts appropriated for or transferred to the
hospital care for the indigent program for the state fiscal year beginning July 1, 2013, and each
state fiscal year thereafter that are not required to be paid to the office by law shall be used
exclusively as state share dollars for the payments described in sections 8(a) and 11 of this chapter.
Any hospital care for the indigent funds that are not required for the payments described in
sections 8(a) and 11 of this chapter after the cessation of the collection of the fee under section 6(b)
of this chapter shall be used for the state share dollars of the payments in IC 12-15-20-2(8)(G)(ii)
through IC 12-15-20-2(8)(G)(x).
Sec. 11. (a) This section:
(1) is effective upon the implementation of the fee; and
(2) applies to the Medicaid disproportionate share payments for the state fiscal year beginning
July 1, 2013, and each state fiscal year thereafter.
(b) The state share dollars used to fund disproportionate share payments to acute care hospitals
licensed under IC 16-21-2 that qualify as disproportionate share providers or municipal
disproportionate share providers under IC 12-15-16-1(a) or IC 12-15-16-1(b) shall be paid with
money collected through the fee and the hospital care for the indigent dollars described in section
10 of this chapter.
(c) Subject to section 12 of this chapter and except as provided in section 12 of this chapter, the
federal Medicaid disproportionate share allotments for the state fiscal years beginning July 1, 2013,
and each state fiscal year thereafter shall be allocated in their entirety to acute care hospitals
licensed under IC 16-21-2 that qualify as disproportionate share providers or municipal
disproportionate share providers under IC 12-15-16-1(a) or IC 12-15-16-1(b). No part of the federal
disproportionate share allotments applicable for disproportionate share payments for the state
fiscal year beginning July 1, 2013, and each state fiscal year thereafter may be allocated to
institutions for mental disease or other mental health facilities, as defined by applicable federal law.
Sec. 12. For purposes of this chapter, the entire federal Medicaid disproportionate share
allotment for Indiana does not include the part of allotments that are required to be diverted under
the following:
(1) The federally approved Indiana "Special Terms and Conditions" Medicaid demonstration
project (Number 11-W-00237/5).
(2) Any extension after December 31, 2012, of the Indiana check-up plan established under
IC 12-15-44.2.
The office shall inform the committee and the budget committee concerning any extension of the
Indiana check-up plan after December 31, 2013.
Sec. 13. Notwithstanding IC 12-15-16-6(c), the annual two million dollar ($2,000,000) pool of
disproportionate share dollars under IC 12-15-16-6(c) shall not be available to eligible private
psychiatric institutions. The office shall annually distribute two million dollars ($2,000,000) to
eligible private psychiatric institutions that would have been eligible for payment under
IC 12-15-16-6(c).
Sec. 14. The fees collected under this chapter may be used only as described in this chapter or
to pay the state's share of the cost for Medicaid services provided under the federal Medicaid
program (42 U.S.C. 1396 et seq.) as follows:
(1) Twenty-eight and five-tenths percent (28.5%) may be used by the office for Medicaid
expenses.
(2) Seventy-one and five-tenths percent (71.5%) to hospitals.
Sec. 15. This chapter may not be construed to authorize any county, municipality, district, or
authority to impose a fee, tax, or assessment on a hospital.
Sec. 16. Subject to section 8(b) of this chapter, the office may adopt rules, including emergency
rules adopted in the manner provided under IC 4-22-2-37.1, necessary to implement this chapter.
Rules adopted under this section may be retroactive to the effective date of the Medicaid state plan
amendments or waivers approved under this chapter.
Sec. 17. The office may enter into an agreement with a hospital to pay the fee in installments.
Sec. 18. (a) A hospital shall pay to the office interest on any fee that is paid eleven (11) or more
days after the payment date. The interest must be applied at the same rate as the rate determined
under IC 12-15-21-3(6)(A).
(b) The office shall report to the state department of health each hospital that fails to pay the fee
within one hundred twenty (120) days after the payment date. The state department shall do the
following concerning a hospital described in this subsection:
(1) Notify the hospital that the hospital's license under IC 16-21 will be revoked if the fee is not
paid.
(2) Revoke the hospital's license under IC 16-21 if the hospital fails to pay the fee. IC 4-21.5-3-8
and IC 4-21.5-4 apply to this subdivision.
Sec. 19. Payments for the programs described in section 8(a) of this chapter are limited to claims
for dates of services provided during the fee period and that are timely filed with the office or a
contractor of the office. Payments for the programs described in section 8(a) of this chapter and
payments to hospitals in accordance with section 11 of this chapter may occur at any time, including
after collection of the fee is stopped under section 6(b) of this chapter, to the extent the funding
provided for the payments by this chapter is available under section 9(c) of this chapter. Payments
for the program described in section 13 of this chapter may occur at any time, including after the
collection of the fee is stopped under section 6(b) of this chapter, subject to the reconciliation and
termination of the program required by section 6(b) of this chapter.
Sec. 20. The office may collect unpaid fees owed by a hospital under this chapter and may refund
fees paid by a hospital under this chapter at any time, including after the cessation of the collection
of a fee under this chapter.
Sec. 21. This chapter expires June 30, 2017.
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. This chapter expires June 30, 2014.
2017.
to a qualifying school corporation is the amount determined by the department multiplied by the school
corporation's current ADM, as determined:
(1) for a calendar year ending before January 1, 2014, in the fall count of students in the school
year ending in the current calendar year; and
(2) for a calendar year ending after December 31, 2013, in the spring count of students in the
school year ending in the current calendar year.
The amount is one hundred dollars ($100). However, for the purposes of determining the current ADM
of a school corporation, students who are transferred under IC 20-33-4 or IC 20-26-11 shall be counted
as students having legal settlement in the transferee corporation and not having legal settlement in the
transferor corporation.
that preceded the adoption of the preliminary or disapproving resolution.
(c) As used in this section, "township board" means the township board of a township in which the
school township is located.
(d) As used in this section, "township trustee" means the township trustee of the township in which
the school township is located.
(e) In a school township, a metropolitan school district may be created by complying with this section.
A metropolitan school district created under this section shall have the same boundaries as the school
township. After a district has been created under this section, the school township that preceded the
metropolitan school district is abolished. The procedures or provisions governing the creation of a
metropolitan school district under another section of this chapter do not apply to the creation of a district
under this section. After a metropolitan school district is created under this section, the district shall,
except as otherwise provided in this section, be governed by and operate in accordance with this chapter
governing the operation of a metropolitan school district as established under section 2 of this chapter.
(f) Except as provided in subsection (g), a metropolitan school district provided for in subsection (e)
may be created in the following manner:
(1) The township trustee shall call a meeting of the township board. At the meeting, the township
trustee and a majority of the township board shall adopt a resolution that a metropolitan school
district shall be created in the school township. The township trustee shall then give notice:
(A) by two (2) publications one (1) week apart in a newspaper of general circulation published
in the school township; or
(B) if there is no newspaper as described in clause (A), in a newspaper of general circulation in
the county;
of the adoption of the resolution setting forth the text of the resolution.
(2) On the thirtieth day after the date of the last publication of the notice under subdivision (1) and
if a protest has not been filed, the township trustee and a majority of the township board shall
confirm their preliminary resolution. If, however, on or before the twenty-ninth day after the date
of the last publication of the notice, a number of registered voters of the school township, equal to
five percent (5%) or more of the number of votes cast in the school township for secretary of state
at the last preceding general election for that office, sign and file with the township trustee a petition
requesting an election in the school township to determine whether or not a metropolitan school
district must be created in the township in accordance with the preliminary resolution, then an
election must be held as provided in subsection (h). The preliminary resolution and confirming
resolution provided in this subsection shall both be adopted at a meeting of the township trustee and
township board in which the township trustee and each member of the township board received or
waived a written notice of the date, time, place, and purpose of the meeting. The resolution and the
proof of service or waiver of the notice shall be made a part of the records of the township board.
(g) Except as provided in subsection (f), a metropolitan school district may also be created in the
following manner:
(1) A number of registered voters of the school township, equal to five percent (5%) or more of the
votes cast in the school township for secretary of state at the last general election for that office, shall
sign and file with the township trustee a petition requesting the creation of a metropolitan school
district under this section.
(2) The township trustee and a majority of the township board shall, not more than ten (10) days
after the filing of a petition:
(A) adopt a preliminary resolution that a metropolitan school district shall be created in the
school township and proceed as provided in subsection (f); or
(B) adopt a resolution disapproving the creation of the district.
(3) If either the township trustee or a majority of township board members vote in favor of
disapproving the resolution, an election must be held to determine whether or not a metropolitan
school district shall be created in the school township in the same manner as is provided in
subsection (f) if an election is requested by petition.
(h) An election required under subsection (f) or (g) may, at the option of the township trustee, be held
either as a special election or in conjunction with a primary or general election to be held not more than
one hundred twenty (120) days after the filing of a petition under subsection (f) or the adoption of the
disapproving resolution under subsection (g). The township trustee shall certify the question to the county
election board under IC 3-10-9-3 and give notice of an election:
(1) by two (2) publications one (1) week apart in a newspaper of general circulation in the school
township; or
(2) if a newspaper described in subdivision (1) does not exist, in a newspaper of general circulation
published in the county.
The notice must provide that on a day and time named in the notice, the polls shall be opened at the usual
voting places in the various precincts in the school township for the purpose of taking the vote of the
registered voters of the school township regarding whether a metropolitan school district shall be created
in the township. The election shall be held not less than twenty (20) days and not more than thirty (30)
days after the last publication of the notice unless a primary or general election will be conducted not
more than six (6) months after the publication. In that case, the county election board shall place the
public question on the ballot at the primary or general election. If the election is to be a special election,
the township trustee shall give notice not more than thirty (30) days after the filing of the petition or the
adoption of the disapproving resolution.
(i) On the day and time named in the notice, the polls shall be opened and the votes of the voters shall
be taken regarding whether a metropolitan school district shall be created in the school township. IC 3
governs the election except as otherwise provided in this chapter. The county election board shall conduct
the election. The public question shall be placed on the ballot in the form prescribed by IC 3-10-9-4 and
must state, "Shall a metropolitan school district under IC 20-23-7 be formed in the ____________ School
Township of _____________ County, Indiana?". The name of the school township shall be inserted in
the blanks.
(j) The votes cast in the election shall be canvassed at a place in the school township determined by
the county election board. The certificate of the votes cast for and against the creation of a metropolitan
school district shall be filed in the records of the township board and recorded with the county recorder.
If the special election is not conducted at a primary or general election, the school township shall pay the
expense of holding the election out of the school general fund that is appropriated for this purpose.
(k) A metropolitan school district shall, subject to section 7 of this chapter, be created on the thirtieth
day after the date of the adoption of the confirming resolution under subsection (f) or an election held
under subsection (h). If a public official fails to do the official's duty within the time prescribed in this
section, the failure does not invalidate the proceedings taken under this section. An action to contest the
validity of the creation of a metropolitan school district under this section or to enjoin the operation of
a metropolitan school district may not be instituted later than the thirtieth day following the date of the
adoption of the confirming resolution under subsection (f) or of the election held under subsection (h).
Except as provided in this section, an election under this subsection may not be held sooner than twelve
(12) months after another election held under subsection (h).
(l) A metropolitan school district is known as "The Metropolitan School District of ____________
Township, ____________ County, Indiana". The first metropolitan board of education in a metropolitan
school district created under this section consists of five (5) members. The township trustee and the
township board members are ex officio members of the first board, subject to the laws concerning length
of their respective terms of office, manner of election or appointment, and the filling of vacancies
applicable to their respective offices. The ex officio members serve without compensation or
reimbursement for expenses, other than that which they may receive from their respective offices. The
township board shall, by a resolution recorded in its records, appoint the fifth member of the metropolitan
board of education. The fifth member shall meet the qualifications of a member of a metropolitan board
of education under this chapter, with the exception of the board member district requirements provided
in sections 4, 5, and 8.1 of this chapter.
(m) A fifth board member shall be appointed not more than fifteen (15) days after the date of the
adoption of the confirming resolution under subsection (f)(2) or an election held under subsection (h). The
first board shall hold its first meeting not more than fifteen (15) days after the date when the fifth board
member is appointed or elected, on a date established by the township board in the resolution in which
it appoints the fifth board member. The first board shall serve until January 1 following the election of
a metropolitan school board at the first general election held more than sixty (60) days following the
creation of the metropolitan school district.
(n) After the creation of a metropolitan school district under this section, the president of the
metropolitan school board of the district shall serve as a member of the county board of education and
perform the duties on the county board of education that were previously performed by the township
trustee. The metropolitan school board and superintendent of the district may call upon the assistance of
and use the services provided by the county superintendent of schools. This subsection does not limit or
take away the powers, rights, privileges, or duties of the metropolitan school district or the board or
superintendent of the district provided in this chapter.
SECTION 228.
IC 20-24-2.1-5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Except as provided in subsection
(b), a charter may not be granted after the effective date of this section by the charter board or any
other sponsor or authorizer for a charter school that will serve students who:
(1) are at least twenty (20) years of age; and
(2) have dropped out of high school before receiving a diploma.
(b) Charters may be granted by the mayor of Indianapolis before July 1, 2013, for not more than
three (3) Christel House Academies that will serve students described in subsection (a).
under section 2(a) of this chapter, the department shall distribute to the organizer:
(1) tuition support and other state funding for any purpose for students enrolled in the conversion
charter school;
(2) a proportionate share of state and federal funds received:
(A) for students with disabilities; or
(B) for staff services for students with disabilities;
enrolled in the conversion charter school; and
(3) a proportionate share of funds received under federal or state categorical aid programs for
students who are eligible for the federal or state categorical aid and are enrolled in the conversion
charter school;
for the second six (6) months of the calendar year in which the conversion charter school is established.
The department shall make a distribution under this subsection at the same time and in the same manner
as the department makes a distribution to the governing body of the school corporation in which the
conversion charter school is located. A distribution to the governing body of the school corporation in
which the conversion charter school is located is reduced by the amount distributed to the conversion
charter school. This subsection does not apply to a conversion charter school after December 31 of the
calendar year in which the conversion charter school is established.
(c) This subsection applies during the second six (6) months of the calendar year in which a conversion
charter school is established. A conversion charter school may apply for an advance from the charter
school advancement account under IC 20-49-7 in the amount determined under STEP FOUR of the
following formula:
STEP ONE: Determine the result under subsection (d) STEP ONE (A).
STEP TWO: Determine the difference between:
(A) the conversion charter school's current ADM; minus
(B) the STEP ONE amount.
STEP THREE: Determine the quotient of:
(A) the STEP TWO amount; divided by
(B) the conversion charter school's current ADM.
STEP FOUR: Determine the product of:
(A) the STEP THREE amount; multiplied by
(B) the quotient of:
(i) the subsection (d) STEP TWO amount; divided by
(ii) two (2).
may collect from the organizer of a charter school sponsored authorized by the private college or
university an administrative fee equal to not more than three percent (3%) of the total amount the
organizer receives during the calendar state fiscal year for basic tuition support.
(e) This subsection applies to the charter board. In a calendar state fiscal year, the charter school board
may collect from the organizer of a charter school sponsored authorized by the charter board an
administrative fee equal to not more than three percent (3%) of the total amount the organizer receives
during the calendar state fiscal year for basic tuition support.
(f) A sponsor's An authorizer's administrative fee may not include any costs incurred in delivering
services that a charter school may purchase at its discretion from the sponsor. authorizer. The sponsor
authorizer shall use its funding provided under this section exclusively for the purpose of fulfilling
sponsoring authorizing obligations.
(g) Except for oversight services, a charter school may not be required to purchase services from its
sponsor authorizer as a condition of charter approval or of executing a charter contract, nor may any such
condition be implied.
(h) A charter school may choose to purchase services from its sponsor. authorizer. In that event, the
charter school and sponsor authorizer shall execute an annual service contract, separate from the charter
contract, stating the parties' mutual agreement concerning the services to be provided by the sponsor
authorizer and any service fees to be charged to the charter school. A sponsor An authorizer may not
charge more than market rates for services provided to a charter school.
(i) Not later than ninety (90) days after the end of each fiscal year, each sponsor authorizer shall
provide to each charter school it sponsors authorizes an itemized accounting of the actual costs of
services purchased by the charter school from the sponsor. authorizer. Any difference between the
amount initially charged to the charter school and the actual cost shall be reconciled and paid to the owed
party. If either party disputes the itemized accounting, any charges included in the accounting, or charges
to either party, either party may request a review by the department. The requesting party shall pay the
costs of the review.
SECTION 232. IC 20-24-7-6.5 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 6.5. (a) Subject to
subsection (b) and with the approval of a majority of the members of the governing body, a school
corporation may distribute any part of the following to a conversion school sponsored by the school
corporation in the amount and under the terms and conditions adopted by a majority of the members of
the governing body:
(1) State tuition support and other state distributions to the school corporation.
(2) Any other amount deposited in the school corporation's general fund.
(b) The total amount that may be transferred under subsection (a) in a calendar year to a particular
conversion charter school may not exceed the result determined under STEP FOUR of the following
formula:
STEP ONE: Determine the result of:
(A) the amount of state tuition support that the school corporation is eligible to receive in the
calendar year; divided by
(B) the current ADM of the school corporation for the calendar year.
STEP TWO: Determine the result of:
(A) the amount of state tuition support that the conversion charter school is eligible to receive
in the calendar year; divided by
(B) the current ADM of the conversion charter school for the calendar year.
STEP THREE: Determine the greater of zero (0) or the result of:
(A) the STEP ONE amount; minus
(B) the STEP TWO amount.
STEP FOUR: Determine the result of:
is entitled to receive special education grants under IC 20-43-7 calculated in the same manner as special
education grants are calculated for other school corporations.
(d) The
TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. A laboratory school that:
(1) is operated without an agreement; and
(2) has an ADM in the fall count of a school year of not more than seven hundred fifty (750);
must be treated as a charter school for purposes of funding under IC 20-20-33 and IC 20-43.
demolition of the real estate, real estate improvements, or interest in the real estate or real estate
improvements, as the governing body considers necessary for school purposes.
(C) Provide for conservation measures through utility efficiency programs or under a guaranteed
savings contract as described in IC 36-1-12.5.
(5) To acquire personal property or an interest in personal property as the governing body considers
necessary for school purposes, including buses, motor vehicles, equipment, apparatus, appliances,
books, furniture, and supplies, either by cash purchase or under conditional sales or purchase money
contracts providing for a security interest by the seller until payment is made or by notes where the
contract, security, retention, or note is permitted by applicable law, by gift, by devise, by loan, or by
lease with or without option to purchase and to repair, remodel, remove, relocate, and demolish the
personal property. All purchases and contracts specified under the powers authorized under
subdivision (4) and this subdivision are subject solely to applicable law relating to purchases and
contracting by municipal corporations in general and to the supervisory control of state agencies as
provided in section 6 of this chapter.
(6) To sell or exchange real or personal property or interest in real or personal property that, in the
opinion of the governing body, is not necessary for school purposes, in accordance with IC 20-26-7,
to demolish or otherwise dispose of the property if, in the opinion of the governing body, the
property is not necessary for school purposes and is worthless, and to pay the expenses for the
demolition or disposition.
(7) To lease any school property for a rental that the governing body considers reasonable or to
permit the free use of school property for:
(A) civic or public purposes; or
(B) the operation of a school age child care program for children who are at least five (5) years
of age and less than fifteen (15) years of age that operates before or after the school day, or both,
and during periods when school is not in session;
if the property is not needed for school purposes. Under this subdivision, the governing body may
enter into a long term lease with a nonprofit corporation, community service organization, or other
governmental entity, if the corporation, organization, or other governmental entity will use the
property to be leased for civic or public purposes or for a school age child care program. However,
if payment for the property subject to a long term lease is made from money in the school
corporation's debt service fund, all proceeds from the long term lease must be deposited in the school
corporation's debt service fund so long as payment for the property has not been made. The
governing body may, at the governing body's option, use the procedure specified in IC 36-1-11-10
in leasing property under this subdivision.
(8) To:
(A) Employ, contract for, and discharge superintendents, supervisors, principals, teachers,
librarians, athletic coaches (whether or not they are otherwise employed by the school
corporation and whether or not they are licensed under IC 20-28-5), business managers,
superintendents of buildings and grounds, janitors, engineers, architects, physicians, dentists,
nurses, accountants, teacher aides performing noninstructional duties, educational and other
professional consultants, data processing and computer service for school purposes, including
the making of schedules, the keeping and analyzing of grades and other student data, the keeping
and preparing of warrants, payroll, and similar data where approved by the state board of
accounts as provided below, and other personnel or services as the governing body considers
necessary for school purposes.
(B) Fix and pay the salaries and compensation of persons and services described in this
subdivision that are consistent with IC 20-28-9-1.
(C) Classify persons or services described in this subdivision and to adopt schedules of salaries
or compensation that are consistent with IC 20-28-9-1.
(D) Determine the number of the persons or the amount of the services employed or contracted
for as provided in this subdivision.
(E) Determine the nature and extent of the duties of the persons described in this subdivision.
The compensation, terms of employment, and discharge of teachers are, however, subject to and
governed by the laws relating to employment, contracting, compensation, and discharge of teachers.
The compensation, terms of employment, and discharge of bus drivers are subject to and governed
by laws relating to employment, contracting, compensation, and discharge of bus drivers. The forms
and procedures relating to the use of computer and data processing equipment in handling the
financial affairs of the school corporation must be submitted to the state board of accounts for
approval so that the services are used by the school corporation when the governing body determines
that it is in the best interest of the school corporation while at the same time providing reasonable
accountability for the funds expended.
(9) Notwithstanding the appropriation limitation in subdivision (3), when the governing body by
resolution considers a trip by an employee of the school corporation or by a member of the
governing body to be in the interest of the school corporation, including attending meetings,
conferences, or examining equipment, buildings, and installation in other areas, to permit the
employee to be absent in connection with the trip without any loss in pay and to reimburse the
employee or the member the employee's or member's reasonable lodging and meal expenses and
necessary transportation expenses. To pay teaching personnel for time spent in sponsoring and
working with school related trips or activities.
(10) Subject to IC 20-27-13, to transport children to and from school, when in the opinion of the
governing body the transportation is necessary, including considerations for the safety of the
children and without regard to the distance the children live from the school. The transportation must
be otherwise in accordance with applicable law.
(11) To provide a lunch program for a part or all of the students attending the schools of the school
corporation, including the establishment of kitchens, kitchen facilities, kitchen equipment, lunch
rooms, the hiring of the necessary personnel to operate the lunch program, and the purchase of
material and supplies for the lunch program, charging students for the operational costs of the lunch
program, fixing the price per meal or per food item. To operate the lunch program as an
extracurricular activity, subject to the supervision of the governing body. To participate in a surplus
commodity or lunch aid program.
(12) To purchase textbooks, to furnish textbooks without cost or to rent textbooks to students, to
participate in a textbook aid program, all in accordance with applicable law.
(13) To accept students transferred from other school corporations and to transfer students to other
school corporations in accordance with applicable law.
(14) To make budgets, to appropriate funds, and to disburse the money of the school corporation in
accordance with applicable law. To borrow money against current tax collections and otherwise to
borrow money, in accordance with IC 20-48-1.
(15) To purchase insurance or to establish and maintain a program of self-insurance relating to the
liability of the school corporation or the school corporation's employees in connection with motor
vehicles or property and for additional coverage to the extent permitted and in accordance with
IC 34-13-3-20. To purchase additional insurance or to establish and maintain a program of
self-insurance protecting the school corporation and members of the governing body, employees,
contractors, or agents of the school corporation from liability, risk, accident, or loss related to school
property, school contract, school or school related activity, including the purchase of insurance or
the establishment and maintenance of a self-insurance program protecting persons described in this
subdivision against false imprisonment, false arrest, libel, or slander for acts committed in the course
of the persons' employment, protecting the school corporation for fire and extended coverage and
other casualty risks to the extent of replacement cost, loss of use, and other insurable risks relating
to property owned, leased, or held by the school corporation. In accordance with IC 20-26-17, to:
(A) participate in a state employee health plan under IC 5-10-8-6.6 or IC 5-10-8-6.7;
(B) purchase insurance; or
(C) establish and maintain a program of self-insurance;
to benefit school corporation employees, including accident, sickness, health, or dental coverage,
provided that a plan of self-insurance must include an aggregate stop-loss provision.
(16) To make all applications, to enter into all contracts, and to sign all documents necessary for the
receipt of aid, money, or property from the state, the federal government, or from any other source.
(17) To defend a member of the governing body or any employee of the school corporation in any
suit arising out of the performance of the member's or employee's duties for or employment with,
the school corporation, if the governing body by resolution determined that the action was taken in
good faith. To save any member or employee harmless from any liability, cost, or damage in
connection with the performance, including the payment of legal fees, except where the liability,
cost, or damage is predicated on or arises out of the bad faith of the member or employee, or is a
claim or judgment based on the member's or employee's malfeasance in office or employment.
(18) To prepare, make, enforce, amend, or repeal rules, regulations, and procedures:
(A) for the government and management of the schools, property, facilities, and activities of the
school corporation, the school corporation's agents, employees, and pupils and for the operation
of the governing body; and
(B) that may be designated by an appropriate title such as "policy handbook", "bylaws", or "rules
and regulations".
(19) To ratify and approve any action taken by a member of the governing body, an officer of the
governing body, or an employee of the school corporation after the action is taken, if the action could
have been approved in advance, and in connection with the action to pay the expense or
compensation permitted under IC 20-26-1 through IC 20-26-5, IC 20-26-7, IC 20-40-12, and
IC 20-48-1 or any other law.
(20) To exercise any other power and make any expenditure in carrying out the governing body's
general powers and purposes provided in this chapter or in carrying out the powers delineated in this
section which is reasonable from a business or educational standpoint in carrying out school
purposes of the school corporation, including the acquisition of property or the employment or
contracting for services, even though the power or expenditure is not specifically set out in this
chapter. The specific powers set out in this section do not limit the general grant of powers provided
in this chapter except where a limitation is set out in IC 20-26-1 through IC 20-26-5, IC 20-26-7,
IC 20-40-12, and IC 20-48-1 by specific language or by reference to other law.
transferred student, except a student transferred under section 6 of this chapter, transfer tuition from the
transferor corporation or the state as provided in this chapter. Transfer tuition equals the amount
determined under STEP THREE of the following formula:
STEP ONE: Allocate to each transfer student the capital expenditures for any special equipment
used by the transfer student and a proportionate share of the operating costs incurred by the
transferee school for the class of school where the transfer student is enrolled.
STEP TWO: If the transferee school included the transfer student in the transferee school's current
ADM, for a school year, allocate to the transfer student a proportionate share of the following
general fund revenues of the transferee school: for, except as provided in clause (C), the calendar
year in which the school year ends:
(A) State tuition support distributions received during the calendar year in which the school
year ends.
(B) Property tax levies under IC 20-45-7 and IC 20-45-8 for the calendar year in which the
school year ends.
(C) The sum of the following excise tax revenue received for deposit in the calendar year in
which the school year begins:
(i) Financial institution excise tax revenue (IC 6-5.5).
(ii) Motor vehicle excise taxes (IC 6-6-5).
(iii) Commercial vehicle excise taxes (IC 6-6-5.5).
(iv) Boat excise tax (IC 6-6-11).
(v) Aircraft license excise tax (IC 6-6-6.5).
(D) Allocations to the transferee school under IC 6-3.5.
STEP THREE: Determine the greater of:
(A) zero (0); or
(B) the result of subtracting the STEP TWO amount from the STEP ONE amount.
If a child is placed in an institution or facility in Indiana by or with the approval of the department of child
services, the institution or facility shall charge the department of child services for the use of the space
within the institution or facility (commonly called capital costs) that is used to provide educational
services to the child based upon a prorated per student cost.
(c) Operating costs shall be determined for each class of school where a transfer student is enrolled.
The operating cost for each class of school is based on the total expenditures of the transferee corporation
for the class of school from its general fund expenditures as specified in the classified budget forms
prescribed by the state board of accounts. This calculation excludes:
(1) capital outlay;
(2) debt service;
(3) costs of transportation;
(4) salaries of board members;
(5) contracted service for legal expenses; and
(6) any expenditure that is made from extracurricular account receipts;
for the school year.
(d) The capital cost of special equipment for a school year is equal to:
(1) the cost of the special equipment; divided by
(2) the product of:
(A) the useful life of the special equipment, as determined under the rules adopted by the state
board; multiplied by
(B) the number of students using the special equipment during at least part of the school year.
(e) When an item of expense or cost described in subsection (c) cannot be allocated to a class of
school, it shall be prorated to all classes of schools on the basis of the student enrollment of each class
in the transferee corporation compared with the total student enrollment in the school corporation.
(f) Operating costs shall be allocated to a transfer student for each school year by dividing:
(1) the transferee school corporation's operating costs for the class of school in which the transfer
student is enrolled; by
(2) the student enrollment of the class of school in which the transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for less than the full school year of
student attendance, the transfer tuition shall be calculated by the part of the school year for which the
transferred student is enrolled. A school year of student attendance consists of the number of days school
is in session for student attendance. A student, regardless of the student's attendance, is enrolled in a
transferee school unless the student is no longer entitled to be transferred because of a change of
residence, the student has been excluded or expelled from school for the balance of the school year or for
an indefinite period, or the student has been confirmed to have withdrawn from school. The transferor and
the transferee corporation may enter into written agreements concerning the amount of transfer tuition
due in any school year. If an agreement cannot be reached, the amount shall be determined by the state
board, and costs may be established, when in dispute, by the state board of accounts.
(g) A transferee school shall allocate revenues described in subsection (b) STEP TWO to a transfer
student by dividing:
(1) the total amount of revenues received during a period; by
(2) the current ADM of the transferee school for the school year that ends in the calendar year
period in which the revenues are received.
However, for state tuition support distributions or any other state distribution computed using less than
the total current ADM of the transferee school, the transferee school shall allocate the revenues to the
transfer student by dividing the revenues that the transferee school is eligible to receive in a calendar year
during the period by the student count used to compute the state distribution.
(h) Instead of the payments provided in subsection (b), the transferor corporation or state owing
transfer tuition may enter into a long term contract with the transferee corporation governing the transfer
of students. The contract may:
(1) be entered into for a period of not more than five (5) years with an option to renew;
(2) specify a maximum number of students to be transferred; and
(3) fix a method for determining the amount of transfer tuition and the time of payment, which may
be different from that provided in section 14 of this chapter.
(i) A school corporation may negotiate transfer tuition agreements with a neighboring school
corporation that can accommodate additional students. Agreements under this section may:
(1) be for one (1) year or longer; and
(2) fix a method for determining the amount of transfer tuition or time of payment that is different
from the method, amount, or time of payment that is provided in this section or section 14 of this
chapter.
A school corporation may not transfer a student under this section without the prior approval of the child's
parent.
prescribed by the state board of accounts, excluding from the calculation capital outlay, debt service, costs
of transportation, salaries of board members, contracted service for legal expenses, and any expenditure
that is made out of the general fund from extracurricular account receipts, for the school year.
(c) The capital cost for each class of school must consist of the lesser of the following alternatives:
(1) The capital cost must be based on an amount equal to five percent (5%) of the cost of transferee
corporation's physical plant, equipment, and all items connected to the physical plant or equipment,
including:
(A) buildings, additions, and remodeling to the buildings, excluding ordinary maintenance; and
(B) on-site and off-site improvements such as walks, sewers, waterlines, drives, and playgrounds;
that have been paid or are obligated to be paid in the future out of the general fund, capital projects
fund, or debt service fund, including principal and interest, lease rental payments, and funds that
were legal predecessors to these funds. If an item of the physical plant, equipment, appurtenances,
or part of the item is more than twenty (20) years old at the beginning of the school year, the capital
cost of the item shall be disregarded in making the capital cost computation.
(2) The capital cost must be based on the amount budgeted from the general fund for capital outlay
for physical plant, equipment, and appurtenances and the amounts levied for the debt service fund
and the capital projects fund for the calendar year in which the school year ends.
(d) If an item of expense or cost cannot be allocated to a class of school, the item shall be prorated to
all classes of schools on the basis of the ADM of each class in the transferee corporation, as determined
in the fall count of ADM in the school year, compared to the total current ADM therein, as
determined in the fall count of ADM in the school year.
(e) The transfer tuition for each student transferred for each school year shall be calculated by dividing
the transferee school corporation's total operating costs and the total capital costs for the class of school
in which the student is enrolled by the ADM of students therein, as determined in the fall count of ADM
in the school year. If a transferred student is enrolled in a transferee corporation for less than the full
school year, the transfer tuition shall be calculated by the proportion of such school year for which the
transferred student is enrolled. A school year for this purpose consists of the number of days school is in
session for student attendance. A student shall be enrolled in a transferee school, whether or not the
student is in attendance, unless the:
(1) student's residence is outside the area of students transferred to the transferee corporation;
(2) student has been excluded or expelled from school; or
(3) student has been confirmed as a school dropout.
The transferor and transferee corporations may enter into written agreements concerning the amount of
transfer tuition. If an agreement cannot be reached, the amount shall be determined by the state
superintendent, with costs to be established, where in dispute, by the state board of accounts.
(f) The transferor corporation shall pay the transferee corporation, when billed, the amount of book
rental due from transferred students who are unable to pay the book rental amount. The transferor
corporation is entitled to collect the amount of the book rental from the appropriate township trustee, from
its own funds, or from any other source, in the amounts and manner provided by law.
technology, engineering, and mathematics teachers.
(2) A grant program to support the establishment of programs that increase the pool of
high-quality science, technology, engineering, and mathematics teachers in Indiana.
Sec. 10. The roundtable shall develop an application process for grants under this chapter that
identifies recruiting organizations and programs:
(1) that produce high student achievement and effective and highly effective teachers; and
(2) that match science, technology, engineering, and mathematics teachers with Indiana school
corporations that would otherwise encounter a shortage of qualified teachers in science,
technology, engineering, and mathematics.
Sec. 11. The roundtable shall develop standards for evaluating recipients of grants under this
chapter.
Sec. 12. A recipient of a grant under this chapter shall submit to the roundtable a written report
concerning the recipient's compliance with the evaluation standards developed under section 11 of
this chapter on the following dates:
(1) December 1 of each year.
(2) July 1 of each year.
Sec. 13. The roundtable shall consider the information submitted under section 12 of this chapter
when evaluating a subsequent application from a recruiting organization or program. An applicant
may be denied a grant under this chapter based on the information submitted under section 12 of
this chapter.
a school corporation to which this section applies.
(c) Before employing a program participant under subsection (b), the superintendent of the school
corporation must make a determination that one (1) of the following conditions exists:
(1) There is no fully certified and highly effective teacher available for the position.
(2) The program participant is the best qualified candidate for the position.
(d) (a) A program participant who is employed under this section is eligible to receive a transition to
teaching permit. license. The transition to teaching permit license is valid for three (3) years, and may not
be renewed.
(e) (b) A program participant who is employed under this section:
(1) shall enter into either:
(A) a regular teacher's contract under IC 20-28-6-5; or
(B) a temporary teacher's contract under IC 20-28-6-6, if replacing a teacher on a leave of
absence;
(2) is eligible to participate in a mentor teacher program; and
(3) satisfies the field or classroom experience component of the program under section 4(3) of this
chapter.
(f) The state board:
(1) shall review; and
(2) may renew;
the designation of a school corporation or a subject area as having an insufficient supply of licensed
teachers not more than two (2) years following the initial designation under subsection (a).
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4.5. In addition to other benchmarks,
performance indicators, and accountability standards developed under this article, the state board
shall develop alternative benchmarks, performance indicators, and accountability standards to be
used in the assessment of schools that focus exclusively on providing an academic program for
students with developmental, intellectual, or behavioral challenges.
9 of this chapter before November 1 of the previous calendar state fiscal year by the school
corporation or the accredited nonpublic school.
SECTION 259. IC 20-43-1-1, AS AMENDED BY P.L.144-2012, SECTION 2, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JUNE 30, 2013]: Sec. 1. This article expires July 1, 2013. 2015.
be made each calendar state fiscal year under a schedule set by the budget agency and approved by the
governor. However, the schedule must provide:
(1) for at least twelve (12) payments;
(2) that one (1) payment shall be made at least every forty (40) days; and
(3) the total of the payments in each calendar state fiscal year must equal the amount required under
this article.
tuition support for the state fiscal year and shall be distributed to school corporations to restore the
distributions for basic tuition support that are reduced under section 3 of this chapter.
(c) In the state fiscal year beginning July 1, 2014, the budget agency may transfer money from
the state tuition reserve fund to the state general fund if the budget director, after review by the
budget committee, makes a determination that the amount of the distribution for that state fiscal
year for basic tuition support has been reduced under section 3 of this chapter because the amount
of the distributions for the state fiscal year for choice scholarships has exceeded the estimated
amount of the distributions for choice scholarships for the state fiscal year, as determined under
subsection (a). The maximum amount that may be transferred to the state general fund under this
subsection for the state fiscal year may not exceed the lesser of:
(1) the amount of the reduction in basic tuition support distributions described in this
subsection; or
(2) twenty-five million dollars ($25,000,000).
Any amounts transferred under this subsection shall be used to augment the appropriation for state
tuition support for the state fiscal year and shall be distributed to school corporations to restore the
distributions for basic tuition support that are reduced under section 3 of this chapter.
(d) Transfers under this section are in addition to any transfers made from the state tuition
reserve fund under IC 4-12-1-15.7 or any other law.
(e) This section expires June 30, 2015.
the differences between the distribution that the school corporation received and the distribution
that the school corporation would have received if the adjusted count had been used.
under this chapter to calculate a school corporation's transition to foundation revenue per adjusted ADM
for a calendar state fiscal year:
(1) The school corporation's complexity index for the calendar state fiscal year under section 3 of
this chapter.
(2) The school corporation's foundation amount for the calendar state fiscal year under section 4 of
this chapter.
(3) The school corporation's previous year revenue foundation amount for the calendar state fiscal
year under section 5 of this chapter.
(4) The school corporation's transition to foundation amount for the calendar state fiscal year under
section 6 of this chapter.
(5) The school corporation's transition to foundation revenue for the calendar state fiscal year under
section 7 of this chapter.
(1.2).
STEP TWO: A school corporation's STEP TWO amount is the following:
(A) For a charter school located outside Marion County that has previous year revenue that is not
greater than zero (0), the charter school's STEP TWO amount is the quotient of:
(i) the school corporation's transition to foundation revenue for the calendar state fiscal year
where the charter school is located; divided by
(ii) the school corporation's current ADM.
(B) For a charter school located in Marion County that has previous year revenue that is not
greater than zero (0), the charter school's STEP TWO amount is the weighted average of the
transition to foundation revenue for the school corporations where the students counted in the
current ADM of the charter school have legal settlement, as determined under item (iv) of the
following formula:
(i) Determine the transition to foundation revenue for each school corporation where a student
counted in the current ADM of the charter school has legal settlement.
(ii) For each school corporation identified in item (i), divide the item (i) amount by the school
corporation's current ADM.
(iii) For each school corporation identified in item (i), multiply the item (ii) amount by the
number of students counted in the current ADM of the charter school that have legal settlement
in the particular school corporation.
(iv) Determine the sum of the item (iii) amounts for the charter school.
(C) The STEP TWO amount for a school corporation that is not a charter school described in
clause (A) or (B) is the following:
(i) The school corporation's foundation amount for the calendar state fiscal year if the STEP
ONE amount is zero (0) or greater.
(ii) The amount determined under subsection (b), if the school corporation's STEP ONE
amount is less than zero (0).
(b) For the purposes of STEP TWO (C)(ii) in subsection (a), determine the result of:
(1) the result determined for the school corporation under STEP ONE (B) of subsection (a); minus
(2) the result of:
(A) the absolute value of the STEP ONE amount; divided by
(B) seven (7) in 2012 and six (6) in 2013. the following:
(i) Five (5) in the state fiscal year beginning July 1, 2013.
(ii) Four (4) in the state fiscal year beginning July 1, 2014.
entitled to receive in basic tuition support for a state fiscal year is the amount determined in section 3 of
this chapter.
and the number of eligible students determined under STEP TWO.
STEP FOUR: Multiply the STEP THREE amount by nine hundred dollars ($900). one thousand
dollars ($1,000).
(b) An amount received by a school corporation as an honors diploma award may be used only for:
(1) any:
(A) staff training;
(B) program development;
(C) equipment and supply expenditures; or
(D) other expenses;
directly related to the school corporation's honors diploma program; and
(2) the school corporation's program for high ability students.
(c) A governing body that does not comply with this section for a school year is not eligible to receive
an honors diploma award for the following school year.
immediately preceding school year, as determined:
(A) for a calendar year ending before January 1, 2013, in the fall count of ADM for the
school year ending in the calendar year; and
(B) for a calendar year ending after December 31, 2012, in the spring count of ADM for the
school year ending in the calendar year; and
(3) an estimate of these statistics for the succeeding school year.
in 1979, as determined in the spring count of ADM for the school year ending in the
immediately preceding calendar year.
STEP TWO: Calculate the product of:
(A) the STEP ONE result; multiplied by
(B) for:
(i) a calendar year ending before January 1, 2013, the ADM of the immediately preceding
school year of the qualified school corporation that received money from the fund in 1979, as
determined in the fall count of ADM for the school year ending in the immediately
preceding calendar year; and
(ii) a calendar year beginning after December 31, 2012, the total ADM of the immediately
preceding school year of qualified school corporations that received money from the fund
in 1979, as determined in the spring count of ADM for the school year ending in the
immediately preceding calendar year.
SECTION 307. IC 20-49-3-8, AS AMENDED BY P.L.146-2008, SECTION 529, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 8. The fund may be used to make advances:
(1) to school corporations, including school townships, under IC 20-49-4 and IC 20-49-5; and
(2) under IC 20-49-6. and
(3) to charter schools under IC 20-24-7-3(c) and IC 20-49-7.
qualify for the federal free or reduced price lunch program; and
(ii) fifty percent (50%) of the state tuition support amount determined under section 5 of this
chapter if the eligible choice scholarship student is a member of a household with an annual
income of, in the case of an individual not described in section 2.5 of this chapter, not more
than one hundred fifty percent (150%) of the amount required for the eligible choice
scholarship student to qualify for the federal free or reduced price lunch program or, in the case
of an individual described in section 2.5 of this chapter, not more than two hundred percent
(200%) of the amount required for the eligible choice scholarship student to qualify for the
federal free or reduced price lunch program.
(C) If the eligible choice scholarship student is enrolled in grade 1 through 8, the maximum
choice scholarship that the eligible choice scholarship student may receive for a school year:
(i) beginning before July 1, 2013, is four thousand five hundred dollars ($4,500);
(ii) beginning after June 30, 2013, and before July 1, 2014, is four thousand seven
hundred dollars ($4,700); and
(iii) beginning after June 30, 2014, is four thousand eight hundred dollars ($4,800).
(2) In addition, if applicable, any amount that a school corporation would receive under IC 20-43-7
for the student if the student attended the school corporation.
concluded academic term, four thousand dollars ($4,000).
(c) The commission shall pay the stipend directly to the student.
Sec. 3. (a) The amount of a stipend awarded under this chapter may not be reduced because the
student receives other scholarships or forms of financial aid.
(b) Except as otherwise permitted by law, the amount of any other state financial aid received
by a student may not be reduced because the student receives a stipend under this chapter.
(c) A student may concurrently receive a stipend under this chapter and a stipend under
IC 21-13-7.
Sec. 4. The commission may adopt rules under IC 4-22-2 to administer this chapter.
SECTION 330. IC 21-14-12 IS REPEALED [EFFECTIVE JULY 1, 2013]. (Resident Tuition for
Veterans).
tangible real property. Property satisfying the requirements of this section is considered to be
public property devoted to an essential public and governmental function and purpose.
SECTION 336. IC 22-2-16-4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. Nothing in this chapter shall be construed
to prohibit a city, town, or county from adopting an ordinance under IC 22-9-1-12.1 relating to a
category or class in addition to the categories and classes described in IC 22-9-1-2.
of 2002 (which is Title II of the federal Jobs Creation and Worker Assistance Act of 2002,
Pub.L107-147), seventy-two million two hundred thousand dollars ($72,200,000) to the department of
workforce development. The appropriation made by this subsection is available for ten (10) state fiscal
years beginning with the state fiscal year beginning July 1, 2003. Unencumbered money at the end of a
state fiscal year does not revert to the state general fund.
(f) Money appropriated under subsection (e) is subject to the requirements of IC 22-4-37-1.
(g) Money appropriated under subsection (e) may be used only for the following purposes:
(1) The administration of the Unemployment Insurance (UI) program and the Wagner Peyser public
employment office program.
(2) Acquiring land and erecting buildings for the use of the department of workforce development.
(3) Improvements, facilities, paving, landscaping, and equipment repair and maintenance that may
be required by the department of workforce development.
(h) In accordance with the requirements of subsection (g), the department of workforce development
may allocate up to the following amounts from the amount described in subsection (e) for the following
purposes:
(1) Thirty-nine million two hundred thousand dollars ($39,200,000) to be used for the modernization
of the Unemployment Insurance (UI) system beginning July 1, 2003, and ending June 30, 2013.
(2) For:
(A) the state fiscal year beginning after June 30, 2003, and ending before July 1, 2004, five
million dollars ($5,000,000);
(B) the state fiscal year beginning after June 30, 2004, and ending before July 1, 2005, five
million dollars ($5,000,000);
(C) the state fiscal year beginning after June 30, 2005, and ending before July 1, 2006, five
million dollars ($5,000,000);
(D) the state fiscal year beginning after June 30, 2006, and ending before July 1, 2007, five
million dollars ($5,000,000);
(E) the state fiscal year beginning after June 30, 2007, and ending before July 1, 2008, five
million dollars ($5,000,000); and
(F) state fiscal years beginning after June 30, 2008, and ending before July 1, 2012, the unused
part of any amount allocated in any year for any purpose under this subsection;
for the JOBS proposal to meet the workforce needs of Indiana employers in high wage, high skill,
high demand occupations.
(3) For:
(A) the state fiscal year beginning after June 30, 2003, and ending before July 1, 2004, four
million dollars ($4,000,000); and
(B) the state fiscal year beginning after June 30, 2004, and ending before July 1, 2005, four
million dollars ($4,000,000);
to be used by the workforce investment boards in the administration of Indiana's public employment
offices.
(i) The amount appropriated under subsection (e) for the payment of expenses incurred in the
administration of this article and public employment is not required to be obligated within the two (2) year
period described in subsection (a)(2).
The commissioner shall serve at the will of the secretary of state.
(b) The secretary of state:
(1) shall employ a chief deputy, attorneys, a senior investigator, a senior accountant, and other
deputies, investigators, accountants, clerks, stenographers, and other employees necessary for the
administration of this article; and
(2) shall fix their compensation with the approval of the budget agency.
(c) It is unlawful for the commissioner or an officer, employee, or designee of the commissioner to use
for personal benefit or the benefit of others records or other information obtained by or filed with the
commissioner that are not public under section 7(b) of this chapter. This article does not authorize the
commissioner or an officer, employee, or designee of the commissioner to disclose the record or
information, except in accordance with section 2, 7(c), or 8 of this chapter.
(d) This article does not create or diminish a privilege or exemption that exists at common law, by
statute or rule, or otherwise.
(e) Subject to IC 4-2-6-15, the commissioner may develop and implement investor education initiatives
to inform the public about investing in securities, with particular emphasis on the prevention and
detection of securities fraud. In developing and implementing these initiatives, the commissioner may
collaborate with public and nonprofit organizations with an interest in investor education. The
commissioner may accept a grant or donation from a person that is not affiliated with the securities
industry or from a nonprofit organization, regardless of whether the organization is affiliated with the
securities industry, to develop and implement investor education initiatives. This subsection does not
authorize the commissioner to require participation or monetary contributions of a registrant in an investor
education program.
(f) The securities division enforcement account is established. Fees and funds of whatever character
accruing from the administration of this article shall be accounted for by the secretary of state and shall
be deposited with the treasurer of state to be deposited by the treasurer of the state in either the state
general fund or the securities division enforcement account. referenced below. Subject to IC 4-2-6-15,
expenses incurred in the administration of this article shall be paid from the state general fund upon
appropriation being made for the expenses in the manner provided by law for the making of those
appropriations. However, grants and donations received under subsection (e), costs of investigations
recovered under section 4(e) of this chapter, and civil penalties recovered under sections 3(b) and 4(d)
of this chapter The following shall be deposited by the treasurer of state in a separate account to be
known as the securities division enforcement account:
(1) Grants and donations received under subsection (e).
(2) Costs of investigations recovered under section 4(e) of this chapter.
(3) Fifty percent (50%) of the first two million dollars ($2,000,000):
(A) of a civil penalty recovered under section 3(b) or 4(d) of this chapter;
(B) recovered in a settlement of an action initiated to enforce this article; or
(C) awarded as a judgment in an action to enforce this article.
(g) The following shall be deposited by the treasurer of state in the state general fund:
(1) Fifty percent (50%) of the first two million dollars ($2,000,000)
:
(A) of a civil penalty recovered under section 3(b) or 4(d) of this chapter;
(B) recovered in a settlement of an action initiated to enforce this article; or
(C) awarded as a judgment in an action to enforce this article.
(2) Any amount exceeding two million dollars ($2,000,000)
:
(A) of a civil penalty recovered under section 3(b) or 4(d) of this chapter;
(B) recovered in a settlement of an action initiated to enforce this article; or
(C) awarded as a judgment in an action to enforce this article.
(3) Other fees and revenues that are not designated for deposit in the securities division
enforcement account or the securities restitution fund.
(h) Notwithstanding IC 9-23-6-4, IC 23-2-2.5-34, IC 23-2-2.5-43, IC 23-2-5-7, IC 23-19-4-12,
IC 25-11-1-15, and this chapter, five percent (5%) of funds received after June 30, 2010, for deposit in
the securities division enforcement account shall instead be deposited in the securities restitution fund
established by IC 23-20-1-25. Subject to IC 4-2-6-15, the funds deposited in the enforcement account
shall be available, with the approval of the budget agency:
(1) to augment and supplement the funds appropriated for the administration of this article; and
(2) for grants and awards to nonprofit entities for programs and activities that will further investor
education and financial literacy in the state.
The funds in the enforcement account do not revert to the state general fund at the end of any state fiscal
year.
(g) (i) In connection with the administration and enforcement of this article, the attorney general shall
render all necessary assistance to the commissioner upon the commissioner's request, and to that end, the
attorney general shall employ legal and other professional services as are necessary to adequately and
fully perform the service under the direction of the commissioner as the demands of the securities division
shall require. Expenses incurred by the attorney general for the purposes stated in this subsection shall
be chargeable against and paid out of funds appropriated to the attorney general for the administration
of the attorney general's office. The attorney general may authorize the commissioner and the
commissioner's designee to represent the commissioner and the securities division in any proceeding
involving enforcement or defense of this article.
(h) (j) Neither the secretary of state, the commissioner, nor an employee of the securities division shall
be liable in their individual capacity, except to the state, for an act done or omitted in connection with the
performance of their respective duties under this article.
(i) (k) The commissioner shall take, prescribe, and file the oath of office prescribed by law. The
commissioner, chief deputy commissioner, and each attorney or investigator designated by the
commissioner are police officers of the state and shall have all the powers and duties of police officers
in making arrests for violations of this article, or in serving any process, notice, or order connected with
the enforcement of this article by whatever officer, authority, or court issued and shall comprise the
enforcement department of the division and are considered a criminal justice agency for purposes of
IC 5-2-4 and IC 10-13-3.
(j) (l) The provisions of this article delegating and granting power to the secretary of state, the
securities division, and the commissioner shall be liberally construed to the end that:
(1) the practice or commission of fraud may be prohibited and prevented;
(2) disclosure of sufficient and reliable information in order to afford reasonable opportunity for the
exercise of independent judgment of the persons involved may be assured; and
(3) the qualifications may be prescribed to assure availability of reliable broker-dealers, investment
advisers, and agents engaged in and in connection with the issuance, barter, sale, purchase, transfer,
or disposition of securities in this state.
It is the intent and purpose of this article to delegate and grant to and vest in the secretary of state, the
securities division, and the commissioner full and complete power to carry into effect and accomplish the
purpose of this article and to charge them with full and complete responsibility for its effective
administration.
(k) (m) Copies of any statement and documents filed in the office of the secretary of state and of any
records of the secretary of state certified by the commissioner shall be admissible in any prosecution,
action, suit, or proceeding based upon, arising out of, or under this article to the same effect as the original
of such statement, document, or record would be if actually produced.
(l) (n) IC 4-21.5 is not applicable to any of the proceedings under this article.
SECTION 339. IC 31-33-8-1, AS ADDED BY P.L.131-2009, SECTION 43, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. (a) The department shall initiate an
appropriately thorough child protection assessment of every report of known or suspected child abuse or
neglect the department receives, whether in accordance with this article or otherwise.
(b) If a report of known or suspected child abuse or neglect is received from a judge or
prosecutor requesting the department to initiate a child protection assessment, the department shall
initiate an assessment in accordance with this section.
(c) If a report of known or suspected child abuse or neglect is received from:
(1) medical personnel;
(2) school personnel;
(3) a social worker;
(4) law enforcement officials or personnel;
(5) judiciary personnel; or
(6) prosecuting attorney personnel;
the department shall forward the report to the local office to determine if the department will
initiate an assessment in accordance with this section.
(b) (d) If the department believes that a child is in imminent danger of serious bodily harm, the
department shall initiate an onsite assessment immediately, but not later than one (1) hour, after receiving
the report.
(c) (e) If the report alleges a child may be a victim of child abuse, the assessment shall be initiated
immediately, but not later than twenty-four (24) hours after receipt of the report.
(d) (f) If reports of child neglect are received, the assessment shall be initiated within a reasonably
prompt time, but not later than five (5) days, with the primary consideration being the well-being of the
child who is the subject of the report.
(e) (g) If the report alleges that a child lives with a parent, guardian, or custodian who is married to
or lives with a person who:
(1) has been convicted of:
(A) neglect of a dependent under IC 35-46-1-4; or
(B) a battery offense under IC 35-42-4; or
(2) is required to register as a sex or violent offender under IC 11-8-8;
the department shall initiate an assessment within a reasonably prompt time, but not later than five (5)
days after the department receives the report, with the primary consideration being the well-being of the
child who is the subject of the report.
(f) (h) If the safety or well-being of a child appears to be endangered or the facts otherwise warrant,
the assessment shall be initiated regardless of the time of day.
(g) (i) If a report alleges abuse or neglect and involves a child care ministry that is exempt from
licensure under IC 12-17.2-6, the department and the appropriate law enforcement agency shall jointly
conduct an investigation. The investigation shall be conducted under the requirements of this section and
section 2(b) of this chapter.
if all the liens created under this chapter were paid in full, the liens must be reduced on a pro rata basis
to the extent that will permit the patient to receive twenty percent (20%) of the full amount.
(d) A lien provided for in this chapter does not apply to a judgment, cause of action, suit, or claim
accruing to the patient under:
(1) a policy of disability insurance; or
(2) automobile or homeowner's insurance that provides for medical payments.
SECTION 342. IC 32-33-4-3.5, AS ADDED BY SEA 5-2013, SECTION 3, IS AMENDED TO READ
AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3.5. (a) This section applies to any person who holds
a lien under this chapter.
(b) As used in this section, "hospital lienholder" means:
(1) a person, firm, partnership, association, limited liability company, or corporation maintaining
a hospital in Indiana; or
(2) a hospital owned, maintained, or operated by the state or a political subdivision;
that has a lien under this chapter.
(c) If a hospital lienholder settles or compromises a claim in an amount less than the amount of its lien,
the hospital lienholder is barred from seeking any additional reimbursement from the patient or the
patient's representative.
(d) A hospital lienholder is barred from seeking from the patient or the patient's representative payment
for any amount of the hospital's charges that exceed the patient's financial obligation to the hospital under
the terms of any public or private benefits to which the patient is entitled, including the terms of any
health plan contract and medical insurance. The lien must reflect credits for all payments, contractual
adjustments, write-offs, and any other benefit in favor of the patient.
(e) A hospital lienholder is barred from enforcing the collection of charges covered by this chapter
until the cause of action, suit, or claim accruing to the patient has been resolved by compromise,
settlement, or judgment.
SECTION 343. IC 35-32-2-7, AS ADDED BY SEA 224-2013, SECTION 3, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. A person may be tried for a violation of
IC 2-8-3-6 IC 2-8.2-4-6 in:
(1) Marion County; or
(2) the county where the person resides.
incidental to the issuance of the bonds, does not exceed the total authority listed below for that institution:
Purdue University
Life Sciences Laboratory Renovations
IC 21-13-3-1 (before its repeal by this act) to the state general fund.
(b) This SECTION expires July 1, 2014.
provision added, amended, or repealed by SEA 85-2013 and the provision added, amended, or
repealed by the other act. The lawful compilers of the Indiana Code, in publishing the
corresponding Indiana Code provision, shall publish the version of the Indiana Code provision that
is added, amended, or repealed by the other act, and shall note that this version of the provision is
effective on the effective date of the provision in the other act. The history line for an Indiana Code
provision that is added or amended by the other act must reference both acts.
(e) If SEA 85-2013 adds a provision at the same Indiana Code location as a provision added in
the other act, the lawful compilers of the Indiana Code, in publishing the affected Indiana Code
provisions, shall publish both the version of the Indiana Code provision that is added by SEA
85-2013 and the version that is added by the other act, unless the subject matter in both versions
of the provision is substantially similar. If the subject matter is substantially similar, subject to
subsection (d), the lawful compilers of the Indiana Code, in publishing the affected Indiana Code
provision, shall publish the version of the Indiana Code provision that is amended by the other act,
and shall note that this version of the provision is effective on the effective date of the provision in
the other act. The history line for an Indiana Code provision that is added or amended by the other
act must reference both acts.
(f) If, during the same year, two (2) or more other acts amend, add, or repeal the same Indiana
Code provision as the Indiana Code provision amended, added, or repealed by SEA 85-2013, the
lawful compilers of the Indiana Code, in publishing the Indiana Code provision, shall follow the
principles set forth in this section.
during the taxable year qualified restaurant property that was classified as 15-year property
under Section 168(e)(3)(E)(v) of the Internal Revenue Code.
(5) Amounts deducted from gross income under Section 179E of the Internal Revenue Code
for any qualified advanced mine safety equipment property.
(6) The determination of the adjusted gross income of any taxpayer for which tax was not
imposed on the net recognized built-in gain of an S corporation under Section 1374(d)(7) of
the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
(c) The department of state revenue shall prescribe the forms necessary to implement subsection
(b).
(d) This SECTION expires January 1, 2015.
S
igned by:
____________________________ ____________________________
Representative Brown T Senator Kenley
Chairperson
____________________________ ____________________________
Representative Crouch Senator Hershman
House Conferees Senate Conferees