HB 1574-1_ Filed 02/12/2001, 15:09
Adopted 2/12/2001


Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

22

                                                        NO:
3

MR. SPEAKER:
    Your Committee on       Ways and Means     , to which was referred       House Bill 1574     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

    Delete everything after the enacting clause and insert the following:

SOURCE: IC 36-8-6-4; (01)AM157403.1. -->     SECTION 1. IC 36-8-6-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 4. (a) The 1925 fund is derived from the following sources:
        (1) From money or other property that is given to the local board for the use of the fund. The local board may take by gift, grant, devise, or bequest of any money, chose in action, personal property, or real property, or an interest in it. The local board shall take the property in the name of the local board and may hold, assign, transfer, or sell it.
        (2) From money, fees, and awards that are paid or given to the police department of the municipality or to a member of the department because of service or duty performed by the

department or a member. This includes fines imposed by the safety board against a member of the department, as well as the proceeds from the sale of lost, stolen, and confiscated property recovered or taken into possession by members of the police department in the performance of their duties and sold at a public sale in accordance with law.
        (3) From an assessment made during the period of his employment or for thirty-two (32) years, whichever is shorter, on the salary of each member whom the local board has accepted and designated as a beneficiary of the 1925 fund, an amount equal to six percent (6%) of the salary of a first class patrolman. However, the employer may pay all or a part of the assessment for the member.
         (4) From amounts transferred from a public safety user fee revenue fund established under IC 36-8-8.5 or IC 36-8-8.7.
    (b) The secretary of the local board shall prepare a roll of each of the assessments made under subsection (a)(3) and place opposite the name of every member of the police department the amount of the assessment against him. The treasurer of the local board shall retain out of the salary paid to the member each month the amount of the assessment, other than any amount paid on behalf of the member, and credit it to the 1925 fund. Except to the extent the assessment is paid on behalf of the member, every person becoming a member of the police department is liable for the payment of the assessments and is conclusively considered to agree to pay it and have it deducted from his salary as required in this section.

SOURCE: IC 36-8-6-5; (01)AM157403.2. -->     SECTION 2. IC 36-8-6-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5. (a) If the local board determines that the total amount of money available for a year will be insufficient to pay the benefits, pensions, and retirement allowances the local board is obligated to pay under this chapter, the local board shall, before the date on which the budget of the municipality is adopted, prepare an itemized estimate in the form prescribed by the state board of accounts of the amount of money that will be receipted into and disbursed from the 1925 fund during the next fiscal year. The estimated receipts consist of the items enumerated in section 4(a) of this chapter. The estimated disbursements consist of an estimate of the amount of money that will be needed by the local board during the next fiscal year to

defray the expenses and obligations incurred and that will be incurred by the local board in making the payments prescribed by this chapter to retired members, to members who are eligible to and expect to retire during the ensuing fiscal year, and to the dependents of deceased members.
    (b) The local board may provide in its annual budget and pay all necessary expenses of operating the 1925 fund, including the payment of all costs of litigation and attorney fees arising in connection with the fund, as well as the payment of benefits and pensions. Notwithstanding any other law, neither the municipal legislative body, the county board of tax adjustment, nor the state board of tax commissioners may reduce an item of expenditure.
    (c) At the time when the estimates are prepared and submitted, the local board shall also prepare and submit a certified statement showing:
        (1) the name, age, and date of retirement of each retired member and the monthly and yearly amount of the payment to which the retired member is entitled;
        (2) the name and age of each member who is eligible to and expects to retire during the next fiscal year, the date on which the member expects to retire, and the monthly and yearly amount of the payment that the member will be entitled to receive; and
        (3) the name and age of each dependent, the date on which the dependent became a dependent, the date on which the dependent will cease to be a dependent by reason of his attaining the age at which dependents cease to be dependents, and the monthly and yearly amount of the payment to which the dependent is entitled.
    (d) The total receipts shall be deducted from the total expenditures stated in the itemized estimate and the amount of the excess of the estimated expenditures over the estimated receipts shall be paid by the municipality in the same manner as other expenses of the municipality are paid. A tax levy shall be made annually for this purpose, as provided in subsection (e). The estimates submitted shall be prepared and filed in the same manner and form and at the same time that estimates of other municipal offices and departments are prepared and filed.
    (e) Except as provided in subsection (f), the municipal legislative body shall levy an annual tax in the amount and at the rate that are necessary to produce the revenue to pay that part of the police pensions

that the municipality is obligated to pay. All money derived from the levy is for the exclusive use of the police pensions and benefits. The amounts in the estimated disbursements, if found to be correct and in conformity with the data submitted in the certified statement, are a binding obligation upon the municipality. The legislative body shall make a levy for them that will yield an amount equal to the estimated disbursements, less the amount of the estimated receipts. Notwithstanding any other law, neither the county board of tax adjustment nor the state board of tax commissioners may reduce the levy.
     (f) Notwithstanding subsection (e), the legislative body is not required to levy an annual tax if amounts transferred from a public safety user fee revenue fund established under IC 36-8-8.5 or IC 36-8-8.7 and credited to the 1925 fund are sufficient to produce the revenue to pay that part of the police pensions that the municipality is obligated to pay under this chapter.

SOURCE: IC 36-8-7-8; (01)AM157403.3. -->     SECTION 3. IC 36-8-7-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 8. The 1937 fund is derived from the following sources:
        (1) From all money and other property that is given to the local board or 1937 fund for the uses and purposes for which the fund is created. The local board may take by gift, grant, devise, or bequest any money, personal property, real estate, or an interest in it. The gift, grant, devise, or bequest may be absolute or in fee simple or upon the condition that only the rents, income, or profits arising from it may be applied to the purposes for which the fund is established.
        (2) All money, fees, rewards, or emoluments that are paid, given, devised, or bequeathed to the fire department or one (1) of the fire companies.
        (3) All money accruing as interest on the securities or investments that are owned by and held in the name of the local board.
        (4) All money received by the local board from the sale or by the maturity of securities or investments owned by the local board.
        (5) An assessment made during the period of his employment or for thirty-two (32) years, whichever is shorter, on the salary of each member equal to six percent (6%) of the salary of a fully paid first class firefighter. However, the employer may pay all or

a part of the assessment for the member. The secretary of the fire department, or the person whose duty it is to make out the payrolls, shall place on the payroll opposite the name of every member the amount of assessment on his salary. The unit's fiscal officer shall deduct monthly from the salary of every member the sum listed opposite his name, other than any amount paid on behalf of the member, and shall credit that amount to the 1937 fund. Except to the extent the assessment is paid on behalf of the member, every person who becomes a member of the fire department is liable for the assessment and is conclusively considered to agree to pay it by having it deducted from his salary as required in this section.
        (6) Appropriations that are made for the fund by the unit's fiscal body.
         (7) From amounts transferred from a public safety user fee revenue fund established under IC 36-8-8.5 or IC 36-8-8.7.

SOURCE: IC 36-8-7-14; (01)AM157403.4. -->     SECTION 4. IC 36-8-7-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 14. (a) The local board shall meet annually and prepare an itemized estimate, in the form prescribed by the state board of accounts, of the amount of money that will be receipted into and disbursed from the 1937 fund during the next fiscal year. The estimated receipts consist of the items enumerated in section 8 of this chapter. The estimated disbursements must be divided into two (2) parts, designated as part 1 and part 2.
    (b) Part 1 of the estimated disbursements consists of an estimate of the amount of money that will be needed by the local board during the next fiscal year to defray the expenses and obligations incurred and that will be incurred by the local board in making the payments prescribed by this chapter to retired members, to members who are eligible to and expect to retire during the next fiscal year, and to the dependents of deceased members. Part 2 of the estimated disbursements consists of an estimate of the amount of money that will be needed to pay death benefits and other expenditures that are authorized or required by this chapter.
    (c) At the time when the estimates are prepared and submitted, the local board shall also prepare and submit a certified statement showing the following:
        (1) The name, age, and date of retirement of each retired member

and the monthly and yearly amount of the payment to which the retired member is entitled.
        (2) The name and age of each member who is eligible to and expects to retire during the next fiscal year, the date on which the member expects to retire, and the monthly and yearly amount of the payment that the member will be entitled to receive.
        (3) The name and the age of each dependent, the date on which the dependent became a dependent, the date on which the dependent will cease to be a dependent by reason of attaining the age at which dependents cease to be dependents, and the monthly and yearly amount of the payment to which the dependent is entitled.
        (4) The amount that would be required for the next fiscal year to maintain level cost funding during the active fund members' employment on an actuarial basis.
        (5) The amount that would be required for the next fiscal year to amortize accrued liability for active members, retired members, and dependents over a period determined by the local board, but not to exceed forty (40) years.
    (d) The total receipts shall be deducted from the total expenditures as listed in the itemized estimate. The amount of the excess of the estimated expenditures over the estimated receipts shall be paid by the unit in the same manner as other expenses of the unit are paid, and an appropriation shall be made annually for that purpose. The estimates submitted shall be prepared and filed in the same manner and form and at the same time that estimates of other offices and departments of the unit are prepared and filed.
    (e) The estimates shall be made a part of the annual budget of the unit. When revising the estimates, the executive, the fiscal officer, and other fiduciary officers may not reduce the items in part 1 of the estimated disbursements.
    (f) Except as provided in subsection (g), the unit's fiscal body shall make the appropriations necessary to pay that proportion of the budget of the 1937 fund that the unit is obligated to pay under subsection (d). In addition, the fiscal body may make appropriations for purposes of subsection (c)(4), (c)(5), or both. All appropriations shall be made to the local board for the exclusive use of the 1937 fund. The amounts listed in part 1 of the estimated disbursements, if found to be correct

and in conformity with the data submitted in the certified statement, are a binding obligation upon the unit. Notwithstanding any other law, neither the county board of tax adjustment nor the state board of tax commissioners may reduce the appropriations made to pay the amount equal to estimated disbursements minus estimated receipts.
     (g) Notwithstanding subsection (f), the amount of appropriations required to be made by the legislative body shall be reduced by amounts transferred from a public safety user fee fund established under IC 36-8-8.5 or IC 36-8-8.7 and credited to the 1937 fund.

SOURCE: IC 36-8-7.5-8; (01)AM157403.5. -->     SECTION 5. IC 36-8-7.5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 8. The 1953 fund is derived from the following sources:
        (1) From money or other property that is given to the local board for the use of the fund. The local board may take by gift, grant, devise, or bequest any money, chose in action, personal property, real property, or use the same for the purposes of the 1953 fund or for such purposes specified by the grantor.
        (2) From money, fees, and awards of every nature that are given to the police department of the municipality or to a member of the department because of service or duty performed by the department or a member. This includes fines imposed by the safety board against a member of the department, all money from gambling cases and from gambling devices as well as the proceeds from the sale of lost, stolen, and confiscated property recovered or taken into possession by members of the police department in the performance of their duties and confiscated by court order, and sold at a public sale in accordance with law.
        (3) From an assessment made during the period of his employment or for thirty-two (32) years, whichever is shorter, on the salary of each member whom the local board has accepted and designated as a beneficiary of the 1953 fund, an amount equal to six percent (6%) of the salary of a first class patrolman. However, the employer may pay all or a part of the assessment for the member.
        (4) From the income from investments of the 1953 fund.
        (5) From the proceeds of a tax levied by the police special service district upon taxable property in the district, which the treasurer

shall collect and credit to the 1953 fund, to be used exclusively by the 1953 fund.
         (6) From amounts transferred from a public safety user fee revenue fund established under IC 36-8-8.5.

SOURCE: IC 36-8-7.5-10; (01)AM157403.6. -->     SECTION 6. IC 36-8-7.5-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 10. (a) If the local board determines that the total amount of money available for a year will be insufficient to pay the benefits, pensions, and retirement allowances the local board is obligated to pay under this chapter, the local board shall, before the date on which the budget of the police special service district is adopted, prepare an itemized estimate in the form prescribed by the state board of accounts of the amount of money that will be receipted into and disbursed from the 1953 fund during the next fiscal year. The estimated receipts consist of the items enumerated in section 8 of this chapter. The estimated disbursements consist of an estimate of the amount of money that will be needed by the local board during the next fiscal year to defray the expenses and obligations incurred and that will be incurred by the local board in making the payments prescribed by this chapter to retired members, to members who are eligible and expect to retire during the ensuing fiscal year, and to the dependents of deceased members.
    (b) At the time when the estimates are prepared and submitted, the local board shall also prepare and submit a certified statement showing:
        (1) the estimated number of beneficiaries from the 1953 fund during the ensuing fiscal year in each of the various classifications of beneficiaries as prescribed in this chapter, and the names and amount of benefits being paid to those actively on the list of beneficiaries at that time;
        (2) the name, age, and length of service of each member of the police department who is eligible to and expects to retire during the ensuing fiscal year, and the monthly and yearly amounts of the payment that the member will be entitled to receive; and
        (3) the name and age of each dependent of a member of the police department who is then receiving benefits, the date on which the dependent commenced drawing benefits, and the date on which the dependent will cease to be a dependent by reason of his attaining the age limit prescribed by this chapter, and the monthly and yearly amounts of the payments to which each of the

dependents is entitled.
    (c) After the amounts of receipts and disbursements shown in the itemized estimate are fixed and approved by the executive, fiscal officer, legislative body and other bodies, as provided by law for other municipal funds, the total receipts shall be deducted from the total expenditures stated in the itemized estimate, and the amount of the excess shall be paid by the police special service district in the same manner as other expenses of the district are paid. Except as provided in subsection (d), the legislative body shall levy a tax and the money derived from the levy shall, when collected, be credited exclusively to the 1953 fund. The tax shall be levied in the amount and at the rate that is necessary to produce sufficient revenue to equal the deficit. Notwithstanding any other law, neither the county board of tax adjustment nor the state board of tax commissioners may reduce the tax levy.
     (d) Notwithstanding subsection (c), the legislative body is not required to levy a tax if the amounts transferred from a public safety user fee revenue fund established under IC 36-8-8.5 and credited to the 1953 fund are sufficient to produce revenue equal to the deficit.

SOURCE: IC 36-8-8.5; (01)AM157403.7. -->     SECTION 7. IC 36-8-8.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
    Chapter 8.5. Consolidated City Public Safety User Fees
    Sec. 1. This chapter applies to a consolidated city.
    Sec. 2. (a) The legislative body may adopt an ordinance to establish just and equitable fees for services provided by:
        (1) the police department;
        (2) the fire department; or
        (3) both the police and fire departments.
An ordinance imposing user fees under this chapter must provide the dates on which the fees are due.
    (b) Fees established after notice and hearing under this chapter are presumed to be just and equitable.
    (c) The fees are payable by the owner of each lot or parcel of real property located in a county containing a consolidated city that:
        (1) is located in:
            (A) the fire special service district (as described in IC 36-3-1-6 (a));
            (B) the police special service district (as described in IC 36-3-1-6 (a)); or
            (C) both the fire special service district and the police special service district; or
        (2) is served by:
            (A) the police department;
            (B) the fire department; or
            (C) both the police and fire departments.
    (d) Unless the legislative body finds otherwise, services provided by:
        (1) the police department;
        (2) the fire department; or
        (3) both the police and fire departments;
are considered to benefit every lot and parcel of real property described in subsection (c), and the fees shall be billed and collected accordingly.
    (e) A fee imposed under this chapter must consist of a flat charge multiplied by the square footage of all improvements located on each lot and parcel of real property described in subsection (c).
    Sec. 3. (a) After the introduction of an ordinance establishing fees under section 2 of this chapter, but before it is finally adopted, the legislative body shall hold a public hearing at which:
        (1) owners of real property located in a county containing a consolidated city served or to be served by:
            (A) the police department;
            (B) the fire department; or
            (C) the police and fire departments; and
        (2) other interested persons;
may be heard concerning the proposed fees.
    (b) Notice of the hearing, setting forth the proposed schedule of fees, shall be published in accordance with IC 5-3-1. The hearing may be adjourned from time to time.
    (c) After the hearing, the legislative body may adopt the ordinance establishing the fees, either as originally introduced or as modified. A copy of the schedule of fees adopted shall be kept on

file and available for public inspection in the offices of the city clerk.
    (d) The fees established for any users or property shall be extended to cover any additional property that is subsequently served, without any hearing or notice.
    (e) The legislative body may change or readjust the fees in the same manner by which they were established.
    (f) Fees collected under this chapter are considered additional revenues of the consolidated city.     Sec. 4. (a) Owners of real property located in a county containing a consolidated city served or to be served by:
        (1) the police department;
        (2) the fire department; or
        (3) both the police and fire departments;
and other interested persons may file a written petition objecting to the user fees. The only grounds for an objection to the user fees is that the fees are not just and equitable.
    (b) If a written petition objecting to the user fees is filed under this section, the following requirements must be met:
        (1) The petition must contain the names and addresses of the petitioners.
        (2) The petitioners must attend the public hearing provided under section 3 of this chapter.
        (3) The written petition must be filed with the legislative body within five (5) days after the hearing required under section 3 of this chapter.
        (4) The written petition must state specifically the ground or grounds of objection.
    (c) Unless the objecting petition is abandoned, the city clerk shall file in the office of the clerk of the circuit or superior court of the county a copy of the user fee ordinance or ordinances together with the petition. The court shall then set the matter for hearing at the earliest possible date, which must be within twenty (20) days after the filing of the petition with the court. The court shall send notice of the hearing by certified mail to the consolidated city and to the first signer of the petition at the address shown on the petition. All interested parties shall appear in the court without further notice, and the consolidated city may not conduct any

further proceedings concerning the user fees until the matters presented by the petition are heard and determined by the court.
    (d) The petitioners shall file with the petition a bond in the sum and with the security fixed by the court. The bond must be conditioned on the petitioners' payment of all or part of the costs of the hearing and any damages awarded to the consolidated city if the petition is denied, as ordered by the court.
    (e) Upon the date fixed in the notice, the court shall, without a jury, hear the evidence produced. The court shall presume the user fees are just and equitable and confirm the decision of the legislative body unless it determines that the findings of the legislative body are arbitrary and capricious, in which case it may sustain the objecting petition. The order of the court is final and conclusive upon all parties to the proceeding and parties who might have appeared at the hearing, subject only to the right of direct appeal. All questions that were presented or might have been presented are considered to have been adjudicated by the order of the court, and no collateral attack upon the decision of the legislative body or order of the court is permitted.
    (f) If the court sustains the petition, or if it is sustained on appeal, the legislative body shall set the user fees in accordance with the decision of the court.
    Sec. 5. (a) The collection of the user fees authorized by this chapter may be effectuated through a periodic billing system.
    (b) If user fees are not paid within the time fixed by the legislative body in an ordinance adopted under section 3 of this chapter, the user fees become delinquent, and a penalty of ten percent (10%) of the amount of the user fees attaches to the user fees. The consolidated city may recover:
        (1) the amount due;
        (2) the penalty; and
        (3) reasonable attorney's fees;
in a civil action in the name of the consolidated city.
    Sec. 6. (a) The fiscal officer shall establish a public safety user fee revenue fund to be maintained as a separate fund of the consolidated city. The fund consists of:
        (1) revenues from a public safety user fee imposed under this chapter; and


        (2) penalties imposed for late payment or nonpayment of a user fee imposed under this chapter.
    (b) The fiscal officer shall maintain separate accounts within the fund for:
        (1) user fees imposed for services provided by the police department, if a user fee is imposed solely for services provided by the police department; and
        (2) user fees imposed for services provided by the fire department, if a user fee is imposed solely for services provided by the fire department.
    (c) Amounts deposited in the fund shall be used to:
        (1) pay the costs of administering the fund; and
        (2) pay all or a part of the costs of pensions obligations under:
            (A) IC 36-8-6 ;
            (B) IC 36-8-7 ;
            (C) IC 36-8-7.5 ; or
            (D) any combination of clauses (A) through (C).
    (d) Amounts in the public safety user fee revenue fund do not revert to the general fund at the end of the fiscal year.
    Sec. 7. (a) User fees imposed under this chapter shall be treated as ad valorem property taxes for the purpose of distributions under the following:
        (1) IC 6-3.5.
        (2) IC 6-5-10.
        (3) IC 6-5-11.
        (4) IC 6-5-12.
        (5) IC 6-6-5.
        (6) Any other law that computes a distribution on the assessed value of the tangible property in a political subdivision or on the property tax levy imposed by the political subdivision.
    (b) The state board of tax commissioners shall provide the information necessary for the department of state revenue and the county auditor to make the distributions described in subsection (a).
    Sec. 8. (a) If a consolidated city adopts an ordinance to impose public safety user fees under this chapter, the local government tax control board established under IC 6-1.1- 18.5-11 shall reduce the applicable maximum permissible ad valorem property tax levy of:
        (1) the police special service district;
        (2) the fire special service district; or
        (3) the police special service district and the fire special service districts;
for property taxes first due and payable during the year after the adoption of the ordinance imposing the user fees.
    (b) The reduction of the applicable maximum permissible ad valorem property tax levy required under subsection (a) must be based on the amount budgeted by the consolidated city for pension obligations under:
        (1) IC 36-8-6 ;
        (2) IC 36-8-7 ;
        (3) IC 36-8-7.5 ; or
        (4) any combination of subdivisions (1) through (3);
that are to be paid for with revenues from public safety user fees imposed under this chapter.
    Sec. 9. (a) Fees assessed against real property under this chapter constitute a lien against the property assessed. The lien is superior to all other liens except tax liens. Except as provided in subsection (b), the lien attaches when notice of the lien is filed in the county recorder's office under section 10 of this chapter.
    (b) The municipality shall release:
        (1) liens filed with the county recorder after the recorded date of conveyance of the property; and
        (2) delinquent fees incurred by the seller of the real property;
upon receipt of a verified demand in writing from the purchaser of the real property. The demand must state that the delinquent fees were not incurred by the purchaser as a user, lessee, or previous owner, and that the purchaser has not been paid by the seller for the delinquent fees.
    Sec. 10. (a) The fiscal officer may defer enforcing the collection of unpaid fees and penalties assessed under this chapter until the unpaid fees and penalties have been due and unpaid for at least ninety (90) days.
    (b) Except as provided in subsection (a), the fiscal officer shall enforce the payment and collection of fees and penalties imposed under this chapter. As often as the fiscal officer determines is necessary in a calendar year, the fiscal officer shall prepare a list

of delinquent fees and penalties that are enforceable under this section. The list must include:
        (1) the name or names of the owner or owners of each lot or parcel of real property on which fees are delinquent;
        (2) the description of the premises, as shown by the records of the county auditor; and
        (3) the amount of the delinquent fees and the penalty.
    (c) The fiscal officer shall record a copy of each list with the county recorder, who shall charge a fee for recording it in accordance with IC 36-2-7-10. The fiscal officer shall then mail to each property owner on the list a notice stating that a lien against the owner's property has been recorded.
    (d) Using the lists prepared under subsection (b) and recorded under subsection (c), the fiscal officer shall certify to the county auditor a list of the liens that remain unpaid according to a schedule agreed upon by the county treasurer and the fiscal officer for collection with the next cycle for property taxes. The county and its officers and employees are not liable for any material error in the information on the list.
    (e) Using the lists prepared under subsection (b) and recorded under subsection (c), after September 1 of the preceding calendar year and before September 1 of the current calendar year, the fiscal officer shall, before December 15 of each year, certify to the county auditor a list of the liens that remain unpaid for collection in the next May. The county and its officers and employees are not liable for any material error in the information on the list.
    (f) The fiscal officer shall release a recorded lien when the:
        (1) delinquent user fees;
        (2) penalties; and
        (3) recording fees;
are fully paid.
    (g) The county recorder shall charge a fee for releasing the lien in accordance with IC 36-2-7-10.
    (h) On receipt of the list under subsection (d) or (e), the county recorder shall immediately enter on the tax duplicate for the consolidated city the delinquent fees, penalties, recording fees, and certification fees, which are due not later than the due date of the next installment of property taxes.


    (i) If delinquent user fees, penalties, recording fees, and certification fees are not paid, they shall be collected by the county treasurer in the same way that delinquent property taxes are collected.
    (j) At the time of each semiannual tax settlement, the county treasurer shall certify to the county auditor all fees and penalties that have been collected. The county auditor shall deduct the certification fees collected by the county treasurer and pay over to the fiscal officer the remaining fees and penalties due to the consolidated city. The county treasurer shall retain the certification fees that have been collected and shall deposit them in the county general fund.
    (k) Fees and penalties that were not recorded before a recorded conveyance shall be removed from the tax roll for a purchaser who, in the manner prescribed by section 9 of this chapter, files a verified demand with the county auditor.
    Sec. 11. The consolidated city may foreclose a lien established by this chapter in order to collect fees and penalties. The consolidated city shall recover the amount of the fees and penalties, and reasonable attorney's fees. The court shall order the sale to be made without relief from valuation or appraisement laws.

SOURCE: IC 36-8-8.7; (01)AM157403.8. -->     SECTION 8. IC 36-8-8.7 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
    Chapter 8.7. Municipal Public Safety User Fees
    Sec. 1. This chapter applies to all cities and towns except a consolidated city.
    Sec. 2. (a) The legislative body may adopt an ordinance to establish just and equitable fees for services provided by:
        (1) the police department;
        (2) the fire department; or
        (3) both the police and fire departments.
An ordinance imposing user fees under this chapter must provide the dates on which the fees are due.
    (b) Fees established after notice and hearing under this chapter are presumed to be just and equitable.
    (c) The fees are payable by the owner of each lot or parcel of real property that is located in the municipality.
    (d) Unless the legislative body finds otherwise, services provided by:
        (1) the police department;
        (2) the fire department; or
        (3) both the police and fire departments;
are considered to benefit every lot or parcel of real property described in subsection (c), and the fees shall be billed and collected accordingly.
    (e) A fee imposed under this chapter must consist of a flat charge multiplied by the square footage of all improvements located on each lot and parcel of real property described in subsection (c).
    Sec. 3. (a) After the introduction of an ordinance establishing fees under section 2 of this chapter, but before it is finally adopted, the municipal legislative body shall hold a public hearing at which:
        (1) owners of real property located in the municipality served or to be served by:
            (A) the police department;
            (B) the fire department; or
            (C) the police and fire departments; and
        (2) other interested persons;
may be heard concerning the proposed fees.
    (b) Notice of the hearing, setting forth the proposed schedule of fees, shall be published in accordance with IC 5-3-1. The hearing may be adjourned from time to time.
    (c) After the hearing, the legislative body may adopt the ordinance establishing the fees, either as originally introduced or as modified. A copy of the schedule of fees adopted shall be kept on file and available for public inspection in the offices of the municipal clerk.
    (d) The fees established for any users or property shall be extended to cover any additional property that is subsequently served, without any hearing or notice.
    (e) The legislative body may change or readjust the fees in the same manner by which they were established.
    (f) Fees collected under this chapter are considered revenues of the municipality.     Sec. 4. (a) Owners of real property located in the municipality

served or to be served by:
        (1) the police department;
        (2) the fire department; or
        (3) the police and fire departments;
and other interested persons may file a written petition objecting to the user fees. The only grounds for objection is that the fees are not just and equitable.
    (b) If a written petition objecting to the user fees is filed under this section, the following requirements must be met:
        (1) The petition must contain the names and addresses of the petitioners.
        (2) The petitioners must attend the public hearing provided under section 3 of this chapter.
        (3) The written petition must be filed with the legislative body within five (5) days after the hearing required under section 3 of this chapter.
        (4) The written petition must state specifically the ground or grounds of objection.
    (c) Unless the objecting petition is abandoned, the municipal clerk shall file in the office of the clerk of the circuit or superior court of the county a copy of the user fee ordinance or ordinances together with the petition. The court shall then set the matter for hearing at the earliest possible date, which must be within twenty (20) days after the filing of the petition with the court. The court shall send notice of the hearing by certified mail to the municipality and to the first signer of the petition at the address shown on the petition. All interested parties shall appear in the court without further notice, and the municipality may not conduct any further proceedings concerning the user fees until the matters presented by the petition are heard and determined by the court.
    (d) The petitioners shall file with the petition a bond in the sum and with the security fixed by the court. The bond must be conditioned on the petitioners' payment of all or part of the costs of the hearing and any damages awarded to the municipality if the petition is denied, as ordered by the court.
    (e) Upon the date fixed in the notice, the court shall, without a jury, hear the evidence produced. The court shall presume the user fees are just and equitable and confirm the decision of the

legislative body, unless it determines that the findings of the legislative body are arbitrary and capricious, in which case it may sustain the objecting petition. The order of the court is final and conclusive upon all parties to the proceeding and parties who might have appeared at the hearing, subject only to the right of direct appeal. All questions that were presented or might have been presented are considered to have been adjudicated by the order of the court, and no collateral attack upon the decision of the legislative body or order of the court is permitted.
    (f) If the court sustains the petition, or if it is sustained on appeal, the legislative body shall set the user fees in accordance with the decision of the court.
    Sec. 5. The collection of the user fees authorized by this chapter may be effectuated through a periodic billing system.     Sec. 6. (a) The fiscal officer shall establish a public safety user fee fund to be maintained as a separate fund of the municipality. The fund consists of:
        (1) revenues from a public safety user fee imposed under this chapter; and
        (2) penalties imposed for late payment or nonpayment of a user fee imposed under this chapter.
    (b) The fiscal officer shall maintain separate accounts within the fund for:
        (1) user fees imposed for services provided by the police department, if a user fee is imposed solely for services provided by the police department; and
        (2) user fees imposed for services provided by the fire department, if a user fee is imposed solely for services provided by the fire department.
    (c) Amounts deposited in the fund may be used to pay all or part of the costs of:
        (1) administering the fund; or
        (2) pension obligations under:
            (A) IC 36-8-6 ;
            (B) IC 36-8-7 ; or
            (C) any combination of clauses (A) and (B).
    (d) Amounts in the public safety user fee revenue fund do not revert to the general fund at the end of the fiscal year.


    Sec. 7. (a) User fees imposed under this chapter shall be treated as ad valorem property taxes for the purpose of distributions under the following:
        (1) IC 6-3.5.
        (2) IC 6-5-10.
        (3) IC 6-5-11.
        (4) IC 6-5-12.
        (5) IC 6-6-5.
        (6) Any other law that computes a distribution on the assessed value of the tangible property in a political subdivision or on the property tax levy imposed by the political subdivision.
    (b) The state board of tax commissioners shall provide the information necessary for the department of state revenue and each county auditor to make the distributions described in subsection (a).
    Sec. 8. If a municipality adopts an ordinance to impose public safety user fees under this chapter, the local government tax control board established under IC 6-1.1-18.5-11 shall reduce the municipality's maximum permissible ad valorem property tax levy for property taxes first due and payable during the year after the adoption of the ordinance imposing the user fees. The reduction shall be based on the amount budgeted by the municipality for:
        (1) pension obligations under IC 36-8-6 ;
        (2) pension obligations under IC 36-8-7 ; or
        (3) any combination of subdivisions (1) and (2);
that are to be paid for with revenues from public safety user fees imposed under this chapter.
    Sec. 9. (a) Fees assessed against real property under this chapter constitute a lien against the property assessed. The lien is superior to all other liens except tax liens. Except as provided in subsection (b), the lien attaches when notice of the lien is filed in the county recorder's office under section 10 of this chapter.
    (b) The municipality shall release:
        (1) liens filed with the county recorder after the recorded date of conveyance of the property; and
        (2) delinquent fees incurred by the seller of the real property;
upon receipt of a verified demand in writing from the purchaser of the real property. The demand must state that the delinquent fees

were not incurred by the purchaser as a user, lessee, or previous owner, and that the purchaser has not been paid by the seller for the delinquent fees.
    Sec. 10. (a) The fiscal officer may defer enforcing the collection of unpaid fees and penalties assessed under this chapter until the unpaid fees and penalties have been due and unpaid for at least ninety (90) days.
    (b) Except as provided in subsection (a), the fiscal officer shall enforce the payment and collection of fees and penalties imposed under this chapter. As often as the fiscal officer determines is necessary in a calendar year, the fiscal officer shall prepare a list of delinquent fees and penalties that are enforceable under this section. The list must include:
        (1) the name or names of the owner or owners of each lot or parcel of real property on which fees are delinquent;
        (2) the description of the premises, as shown by the records of the county auditor; and
        (3) the amount of the delinquent fees, and the penalty.
    (c) The fiscal officer shall record a copy of each list with the county recorder, who shall charge a fee for recording it in accordance with IC 36-2-7-10. The fiscal officer shall then mail to each property owner on the list a notice stating that a lien against the owner's property has been recorded.
    (d) Using the lists prepared under subsection (b) and recorded under subsection (c), the fiscal officer shall certify to the county auditor a list of the liens that remain unpaid according to a schedule agreed upon by the county treasurer and the fiscal officer for collection with the next cycle for property taxes. The county and its officers and employees are not liable for any material error in the information on the list.
    (e) Using the lists prepared under subsection (b) and recorded under subsection (c), after September 1 of the preceding calendar year and before September 1 of the current calendar year, the fiscal officer shall, before December 15 of each year, certify to the county auditor a list of the liens that remain unpaid for collection in the next May. The county and its officers and employees are not liable for any material error in the information on the list.
    (f) The fiscal officer shall release a recorded lien when the:


        (1) delinquent user fees;
        (2) penalties; and
        (3) recording fees;
are fully paid.
    (g) The county recorder shall charge a fee for releasing the lien in accordance with IC 36-2-7-10.     (h) On receipt of the list under subsection (d) or (e), the county recorder shall immediately enter on the tax duplicate for the municipality the delinquent fees, penalties, recording fees, and certification fees, which are due not later than the due date of the next installment of property taxes.
    (i) If delinquent user fees, penalties, recording fees, and certification fees are not paid, they shall be collected by the county treasurer in the same way that delinquent property taxes are collected.
    (j) At the time of each semiannual tax settlement, the county treasurer shall certify to the county auditor all fees and penalties that have been collected. The county auditor shall deduct the certification fees collected by the county treasurer and pay over to the fiscal officer the remaining fees and penalties due to the municipality. The county treasurer shall retain the certification fees that have been collected and deposit them in the county general fund.
    (k) Fees and penalties that were not recorded before a recorded conveyance shall be removed from the tax roll for a purchaser who, in the manner prescribed by section 9 of this chapter, files a verified demand with the county auditor.
    Sec. 11. The municipality may foreclose a lien established by this chapter in order to collect fees and penalties. The municipality shall recover the amount of the fees and penalties and reasonable attorney's fees. The court shall order the sale to be made without relief from valuation or appraisement laws.

SOURCE: IC 36-8-8.8; (01)AM157403.9. -->     SECTION 9. IC 36-8-8.8 , IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
     Chapter 8.8. Replacement of Property Tax Levies in Allocation Areas
    Sec. 1. As used in this chapter, "allocation area" refers to an

area that is established under the authority of any of the following statutes and in which tax increment revenues are collected:
        (1) IC 6-1.1-39.
        (2) IC 8-22-3.5.
        (3) IC 36-7-14.
        (4) IC 36-7-14.5.
        (5) IC 36-7-15.1.
        (6) IC 36-7-30.
    Sec. 2. As used in this chapter, "base assessed value" means the base assessed value as that term is defined in IC 6-1.1-39-5 (h), IC 8-22-3.5-9 (a), IC 36-7-14-39 (a), IC 36-7-15.1-26 (a), IC 36-7-15.1-35 (a), or IC 36-7-30-25 (a)(2).
    Sec. 3. As used in this chapter, "governing body" means the following:
        (1) For an allocation area created under IC 6-1.1-39 , the fiscal body of the county (as defined in IC 36-1-2-6 ).
        (2) For an allocation area created under IC 8-22-3.5 , the commission (as defined in IC 8-22-3.5-2 ).
        (3) For an allocation area created under IC 36-7-14 , the redevelopment commission of the unit.
        (4) For an allocation area created under IC 36-7-14.5 , the authority created by the unit.
        (5) For an allocation area created under IC 36-7-15.1 , the metropolitan development commission of the consolidated city.
        (6) For an allocation area created under IC 36-7-30 , the military base reuse authority.
    Sec. 4. As used in this chapter, "obligation" means an obligation to repay:
        (1) the principal and interest on bonds;
        (2) lease rentals on leases; or
        (3) any other contractual obligation;
payable from tax increment revenues. The term includes a guarantee of repayment from tax increment revenues if other revenues are insufficient to make a payment.
    Sec. 5. As used in this chapter, "property taxes" means:
        (1) property taxes, as defined in IC 6-1.1-39-5 (g), IC 36-7-14-39 (a), IC 36-7-15.1-26 (a), and IC 36-7-30-25 (a)(3);

or
        (2) for allocation areas created under IC 8-22-3.5 , the taxes assessed on taxable tangible property in the allocation area.
    Sec. 6. As used in this chapter, "replacement amount" means the property taxes that:
        (1) were imposed on the assessed value of property in the allocation area in excess of the base assessed value and budgeted by a municipality for purposes described in IC 36-8-8.5-8 or IC 36-8-8.7-8 in the year before a municipality began collecting user fees under IC 36-8-8.5 or IC 36-8-8.7 ; and
        (2) will not be collected in a particular year because of the reduction in the municipality's maximum permissible ad valorem property tax levy under IC 36-8-8.5-8 or IC 36-8-8.7-8.
    Sec. 7. As used in this chapter, "tax increment revenues" means the property taxes attributable to the assessed value of property in excess of the base assessed value.
    Sec. 8. (a) This chapter applies to an allocation area in which:
        (1) the holders of obligations received a pledge before the date on which a municipality imposed a user fee under IC 36-8-8.5 or IC 36-8-8.7 of tax increment revenues to repay any part of the obligations due after the date on which the municipality imposed a user fee under IC 36-8-8.5 or IC 36-8-8.7 ; and
        (2) the reduction of a property tax levy under IC 36-8-8.5 or IC 36-8-8.7 adversely affects the ability of the governing body to repay the obligations described in subdivision (1).
    (b) A governing body may use one (1) or more of the procedures described in sections 9 through 11 of this chapter to provide sufficient funds to repay the obligations described in subsection (a). The amount raised each year may not exceed the replacement amount.
    Sec. 9. (a) A governing body may, after a public hearing, impose a special assessment on the owners of property that is located in an allocation area to repay a bond or an obligation described in section 8 of this chapter that comes due after the date on which the municipality imposed a user fee under IC 36-8-8.5 or IC 36-8-8.7. The amount of a special assessment for a taxpayer shall be

determined by multiplying the replacement amount by a fraction, the denominator of which is the total incremental assessed value in the allocation area, and the numerator of which is the incremental assessed value of the taxpayer's property in the allocation area.
    (b) Before a public hearing under subsection (a) may be held, the governing body must publish notice of the hearing under IC 5-3-1. The notice must state that the governing body will meet to consider whether a special assessment should be imposed under this chapter and whether the special assessment will help the governing body realize the redevelopment or economic development objectives for the allocation area or honor its obligations related to the allocation area. The notice must also name a date when the governing body will receive and hear remonstrances and objections from persons affected by the special assessment. All persons affected by the hearing, including all taxpayers within the allocation area, shall be considered notified of the pendency of the hearing and of subsequent acts, hearings, and orders of the governing body by the notice. At the hearing, which may be adjourned from time to time, the governing body shall hear all persons affected by the proceedings and shall consider all written remonstrances and objections that have been filed. The only grounds for remonstrance or objection are that the special assessment will not help the governing body realize the redevelopment or economic development objectives for the allocation area or honor its obligations related to the allocation area. After considering the evidence presented, the governing body shall take final action concerning the proposed special assessment. The final action taken by the governing body shall be recorded and is final and conclusive, except that an appeal may be taken in the manner prescribed by subsection (c).
    (c) A person who filed a written remonstrance with a governing body under subsection (b) and is aggrieved by the final action taken may, within ten (10) days after that final action, file in the office of the clerk of the circuit or superior court a copy of the order of the governing body and the person's remonstrance or objection against that final action, together with a bond conditioned to pay the costs of appeal if the appeal is determined against the person. The only ground of remonstrance or objection

that the court may hear is whether the proposed assessment will help achieve the redevelopment of economic development objectives for the allocation area or honor its obligations related to the allocation area. An appeal under this subsection shall be promptly heard by the court without a jury. All remonstrances or objections upon which an appeal has been taken must be consolidated, heard, and determined within thirty (30) days after the time of the filing of the appeal. The court shall hear evidence on the remonstrances or objections, and may confirm the final action of the governing body or sustain the remonstrances or objections. The judgment of the court is final and conclusive, unless an appeal is taken as in other civil actions.
    (d) The maximum amount of a special assessment under this section may not exceed the replacement amount.
    (e) A special assessment shall be imposed and collected in the same manner as ad valorem property taxes are imposed and collected.
    Sec. 10. (a) For purposes of this section, "additional credit" means:
        (1) for allocation areas created under IC 6-1.1-39 , the additional credit described in IC 6-1.1-39-6 (a);
        (2) for allocation areas created under IC 8-22-3.5 , the additional credit described in IC 8-22-3.5-10 (a);
        (3) for allocation areas created under IC 36-7-14 , the additional credit described in IC 36-7-14-39.5 (c);
        (4) for allocation areas created under IC 36-7-14.5 , the additional credit described in IC 36-7-14.5-12.5 (d)(5);
        (5) for allocation areas created under IC 36-7-15.1 :
            (A) the additional credit described in IC 36-7-15.1-26.5 (e); or
            (B) the credit described in IC 36-7-15.1-35 (d); or
        (6) for allocation areas created under IC 36-7-30 , the additional credit described in IC 36-7-30-25 (b)(2)(E).
    (b) In order to raise the replacement amount, the governing body of each allocation area may deny all or a part of the additional credit.
    Sec. 11. If a governing body does not impose a special assessment under section 9 of this chapter or deny all or part of the

additional credit under section 10 of this chapter, the governing body may, in order to provide sufficient funds to repay the obligations described in section 8(a) of this chapter, use any tax increment revenues that exceed:
        (1) the amount pledged to pay the principal and interest of obligations; and
        (2) any amounts used to provide debt service reserve for obligations payable solely or in part from tax increment revenues or from other revenues.

    (Reference is to HB 1574 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Bauer


AM157403/DI 73    2001