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Indiana General Assembly
House Bill 1001


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House Bill 1001

ARCHIVE (2001)

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DIGEST OF HB 1001 (Updated April 30, 2001 12:02 AM - DI 73)

State budget. Appropriates state money for the biennium beginning July 1, 2001, and ending June 30, 2003. Authorizes certain capital projects. Provides that the maximum amount of expenditures, transfers, or distributions that may be made from the Indiana tobacco master settlement agreement fund during a state fiscal year is equal to 60% of the amount of money received or to be received by the state under the master settlement agreement during that state fiscal year, plus any amounts that were available for expenditure, transfer, or distribution during preceding state fiscal years but that were not expended, transferred, or distributed. Establishes certain existing trust funds as accounts within the Indiana tobacco master settlement agreement fund. Establishes the regional health care construction account within the Indiana tobacco master settlement agreement fund. Provides that this account is established for the purpose of providing funding for state psychiatric hospitals and developmental centers, regional health centers, or other health facilities designed to provide crisis treatment, rehabilitation, or intervention for adults or children with mental illness, developmental disabilities, addictions, or other medical or rehabilitative needs. Provides that $14,000,000 shall be transferred during state fiscal years 2001- 2002 and 2002-2003 from the Indiana tobacco master settlement fund to the account. Changes the purposes for which the tobacco farmers and rural community impact fund may be used, and specifies that the fund is to be administered by the commissioner of agriculture (instead of the commissioner of agriculture and the department of commerce). Establishes an advisory committee to make recommendations concerning distribution of money from the fund and provides that the commissioner of agriculture may not approve an expenditure from the fund unless that expenditure has been recommended by the advisory board. Provides that any unspent balances in the 2000 appropriation from the Indiana tobacco master settlement agreement fund for capital costs for community mental health centers do not revert until 2004. For purposes of the school funding provisions: (1) changes the dollar amounts used in the calculation of a school corporation's target revenue per ADM; (2) provides that the minimum guaranteed amount of a school corporation's target revenue per ADM in 2002 and 2003 is equal to the previous year revenue increased by 2%, then divided by the current year adjusted ADM; and (3) amends the provisions concerning calculation of target general fund property tax rates. Includes a new index based on a school corporation's at-risk index, the percentage of the school corporation's students who are eligible for free lunches, and the percentage of the school corporation's students who are classified as having limited proficiency in English. Increases the amounts of the special education grants for pupils with severe disabilities, pupils with mild and moderate disabilities, and pupils in homebound programs in 2002 and 2003. Increases the amounts of the at-risk program grant in 2002 and 2003. Increases the amounts of the honors diploma grant in 2002 and 2003. Adjusts the calendar year caps for school funding distributions. Provides that a school corporation's funding under the primetime program may not increase by more than 7.5% over the amount received by the school corporation under the program in the preceding year. Amends a provision in the primetime distribution formula to allow schools which did not participate in the primetime funding program in 2000 to receive a distribution in 2001 and in following years. Increases the staff cost amount used in calculating primetime distributions. For purposes of the vocational education formula that becomes effective in 2002, requires the department of workforce development to provide the department of education with a report listing whether the Indiana average wage level for each generally recognized labor category is a high wage, a moderate wage, or a less than moderate wage. Uses this wage report (along with the reports categorizing vocational education programs by employment demand) in determining the amount of the vocational education grants. Increases vocational education funding per pupil from $230 to $250 for pupils enrolled in programs not covered by the employment demand categories. Eliminates the vocational education funding component for pupils receiving a certificate of achievement. Provides vocational education funding of $150 per pupil for pupils participating in a vocational education program in which pupils from multiple schools are served at a common location. Provides that in 2002 and 2003, a school corporation is guaranteed funding equal to at least 85% of the vocational education funding received by the school corporation in 2001. Provides that a child must be at least five years of age on July 1 to officially enroll for the particular school year in a kindergarten program offered by a school year. (Current law requires that a child must be at least five years of age on June 1 to officially enroll in a kindergarten program.) Authorizes the trustees of Purdue University to issue bonds for the purpose of constructing, remodeling, renovating, furnishing, and equipping the Recreation Gymnasium project at the West Lafayette campus. Provides that the project is not eligible for fee replacement. Authorizes Indiana University to construct a women's field hockey facility on the Bloomington campus at a cost of $1,000,000 to be funded from dedicated student fees. Adds regional health facilities to the list of facilities covered by the state office building commission provisions. Provides that the Indiana war memorials commission may hire employees only with the approval of the budget agency. Provides that the budget director or the budget director's designee is a member of the recreational development commission. Provides that after all statutory transfers are made from the counter- cyclical revenue and economic stabilization fund, the treasurer of state shall in June 2002 and June 2003 transfer any balance in the fund in excess of the June 30, 2001, balance to the state general fund. Provides that if the budget director makes a determination at any time during either fiscal year of the biennium that the executive branch of state government cannot meet its statutory obligations due to insufficient funds in the state general fund, the budget agency, with the approval of the governor and after review by the budget committee, may transfer from the counter-cyclical revenue and economic stabilization fund to the state general fund an amount necessary to maintain a positive balance in the state general fund. Establishes the state museum development fund for the purpose of promoting interest in and use of the Indiana state museum. Provides that the fund consists of revenue generated by exhibit fees, concessions, donations, grants, and other miscellaneous revenue. Provides that property tax collections from indefinite- situs distributable property of railroad car companies that were collected after June 30, 1999, and before January 1, 2001, and were credited to the commuter rail service fund and distributed to a commuter transportation district may be retained by the commuter transportation district and used by the commuter transportation district for any legal purpose. Provides that the speaker of the house of representatives and the president pro tempore of the senate shall each appoint a representative from a high technology business to the Indiana twenty-first century research and technology fund board. Transfers $9,000,000 from the underground petroleum storage tank excess liability trust fund to the environmental remediation revolving loan fund as follows: (1) $4,500,000 on July 1, 2001; and (2) $4,500,000 on July 1, 2002. Transfers $500,000 each year of the biennium from the underground petroleum storage tank excess liability trust fund to the oil and gas environmental fund for plugging abandoned oil wells. Allocates 1% of the state's private activity bond volume cap to the Indiana secondary market for education loans, incorporated (ISMEL). Appropriates money from the build Indiana fund to the property tax replacement fund. For tax years beginning after 2002, provides a credit against state tax liability for property taxes paid on business personal property. Specifies that the credit is equal to the amount of property taxes paid on business personal property that has an assessed valuation of not more than $37,500. Specifies that a utility company may not claim the credit. Repeals the existing personal property tax reduction credit in 2002. Provides that the homestead credit percentage shall be 10% in 2002 and 2003. Extends the Civil War flags commission until July 1, 2006. Provides that a TRF member who before July 1, 1995, served in a position covered by the fund and who is hired by another school corporation or rehired by a prior employer shall remain a member of the pre-1996 account unless the member was hired or rehired before July 1, 2001. Requires the TRF board to adjust the employer contribution rate for TRF to take into account any actuarial savings resulting from this change. Provides that mobile homes not assessed as real property and manufactured homes not assessed as real property are eligible for certain property tax deductions and for the homestead credit. Specifies that the sum of all property tax deductions provided to a mobile home that is not assessed as real property or to a manufactured home that is not assessed as real property may not exceed one-half of the assessed value of the mobile home or manufactured home. Reconciles conflicts between statutes enacted by the 1999 general assembly (shown in italicized type). Authorizes the Indiana development finance authority (IDFA) to make a loan guarantee for a leading Indiana business jointly with the board for depositories in an amount not to exceed $35,000,000. Defines the term "leading Indiana business". Specifies that the loan guarantee must accomplish the purposes of IDFA by enabling the Indiana business to carry out an industrial development project that will satisfy certain conditions. Specifies that IDFA's share of or liability on any joint guarantee with the board for depositories shall not exceed $2,000,000. Specifies that the loan guarantee must provide that in the event of a valid claim of loss by the lender, the lessor, or the issuer of the loan, the amount of the loss (up to $2,000,000) shall first be paid by the industrial development project guaranty fund, and only the remainder of the loss, if any, shall to the extent guaranteed be paid by the public deposit insurance fund. Provides that the term of a guarantee may not exceed 10 years. Provides a five year credit against state tax liability for a percentage of property taxes paid by rerefined lubrication oil facilities. Requires the department of commerce to determine if the taxpayer is entitled to the credit. Provides that OMPP, after review by the budget agency, may implement certain programs. Requires the office of Medicaid policy and planning to: (1) reduce reimbursement rates for over-the-counter drugs; (2) implement a Maximum Allowable Cost schedule for off-patent drugs; (3) develop a plan for contracting with a vendor to provide a pharmaceutical benefit management program; (4) implement an information strategy to high-volume prescribers; (5) phase in case management for aged, blind, and disabled Medicaid recipients; (6) contract with an outside vendor to implement disease management and case management programs; (7) provide necessary information to the Medicaid drug utilization review (DUR) board; and (8) cooperate with the state attorney general in conducting an audit of the Medicaid prescription drug program. Requires the use of generic drugs in the children's health insurance program. Requires the DUR board to meet monthly. Allows the DUR board to hire support staff. Provides that the department of workforce development shall provide staff and administrative support to the Indiana commission for women. Increases the amount that taxing units are charged by the state board of accounts for examinations or investigations. Repeals the beginning teacher internship program. Extends the earned income tax credit through December 31, 2003. Makes certain changes to the alternative education grant program. Provides a credit against a taxpayer's state tax liability for certain qualified capital investments made in Shelby County. Provides that the amount of the credit is equal to 14% of the amount of the qualified investment. Requires the department of commerce to certify the investments as being eligible for the credit. Provides that if a taxpayer receives a credit and does not make the qualified investment for which the credit was granted within the time required, the department of commerce may require the taxpayer to repay the additional amount of state tax liability that would have been paid by the taxpayer if the credit had not been granted, plus interest. Provides for an increase of $0.50 in service charges for various bureau of motor vehicle transactions. Delays the expiration of FSSA until July 1, 2002. Provides that community residential facilities for the developmentally disabled and intermediate care facilities for the mentally retarded that are not operated by the state may be assessed in an amount not to exceed 10% of the annual gross residential services revenues. Specifies that the state veterans' cemetery fund is a dedicated fund and expands its sources of funding. Provides that the balance of the fund at the end of a fiscal year does not revert to the state general fund, and continuously appropriates the earnings on the fund for the operation of the state veterans' cemetery. Provides that the principal of the fund may be expended only for specific purposes following an appropriation by the general assembly. Provides that any unspent appropriations that were made in the 1999 budget act for the operation of the cemetery are to be transferred to the fund. Specifies the schedule that will be used (in place of the statutory schedule) for property tax replacement credit distribution in 2001. Provides that the state health commissioner and the department of education shall review and approve the admission of children at the Silvercrest Children's Development Center. Requires the department of transportation to establish a pilot project for the development of a corridor preservation program along U.S. 31. Increases the penalty for operating while intoxicated when the offender has a previous unrelated conviction for a violation that occurred before July 1, 2001. Increases the maximum time during which certain drug offenders may be placed in a community transition program. Modifies an Indiana court of appeals decision to allow a court to place an offender in a community corrections program more than 365 days after the offender is initially sentenced without the consent of the prosecuting attorney. Eliminates a mathematical error in the definition of "minimum sentence" by changing the definition of "minimum sentence" for murder from 30 years to 45 years and by changing the definition of "minimum sentence" for a Class D felony from one year to one-half year. Provides that a person may not be sentenced as a habitual offender for certain drug offenses. Allows a court to reduce the minimum term of imprisonment for a habitual substance offender if the offender was convicted of certain drug offenses. Includes services for substance abuse and chemical dependency, when the services are required in the treatment of a mental illness, within the definition of "coverage of services for mental illness" for purposes of the law prohibiting the application of treatment limitations or financial requirements to coverage of services for mental illness under state employee health benefit plans if similar limitations or requirements do not apply to the coverage of services for other medical or surgical conditions. Provides that the department of state revenue shall deposit amounts derived from indefinite-situs distributable property of railroad car companies in the commuter rail service fund to be used exclusively for debt financing of the commuter transportation district's long term capital needs. Requires a pharmacist who fills a prescription that is covered under the children's health insurance program (CHIP) to fill the prescription with a generically equivalent drug product and inform the customer of the substitution if the substitution results in a lower price, unless the prescribing practitioner indicates that the prescription must be filled with a brand name drug. Appropriates $150,000 from the build Indiana fund to the budget agency for the Jennings County Economic Development Corporation to conduct a study on employment opportunities and the placement of a regional health care facility in Jennings County. Provides that the division of family and children shall apply all qualifying expenditures from each county's family and children's fund toward Indiana's maintenance of effort under the federal TANF program. Provides that the state board of tax commissioners shall grant approval of an excessive levy to Jay County School Corporation, and that such relief shall be granted as an advance of state funds to be paid back to the state treasurer in 120 payments. Authorizes Randolph County to impose an additional 0.25% county economic development income tax (CEDIT) rate for the purposes of financing, constructing, acquiring, renovating, and equipping the county courthouse and renovating the former county hospital for additional office space, educational facilities, nonsecure juvenile facilities, and other county functions. Provides that the additional rate may also be used for the repayment of bonds issued, or leases entered into, for those purposes. Provides that the county's CEDIT rate plus the county's county adjusted gross income tax (CAGIT) rate may not exceed 1.5% if the county has imposed the additional CEDIT rate authorized by this bill. Authorizes the county to adopt an ordinance that makes the CEDIT rate increase effective January 1, 2002. Permits certain school corporations facing budgetary shortfalls because of a taxpayer's delinquency to apply for a distribution from the property tax replacement fund.
Current Status:
 Law Enacted
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