Introduced Version






HOUSE BILL No. 1003

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 4-4-6.1-1.1.

Synopsis: 21st Century Tax Plan. Repeals the: (1) gross income tax; (2) supplemental net income tax; (3) bank tax; (4) savings and loan tax; and (5) production credit association tax. Reduces the maximum permissible school general fund property tax levy and the part of the county general fund levy used to fund the county's obligation for: (1) the hospital care for the indigent program or uninsured parent program; and (2) certain court personnel and other operating expenditures. Eliminates the property tax levy for the family and children's fund, the county medical assistance to wards fund, and the county children with special health care needs county fund. Provides state funding to replace the eliminated part of each levy. Provides for an additional distribution of $30,000,000 per year for pension relief. Increases the homestead credit to 15%. Expands the earned income tax. Increases the renter's deduction and dependent child deduction. Increases and extends the research expense credit to 20%. Establishes: (1) a property tax replacement credit for inventory; and (2) a business investment credit against state tax liability for property taxes paid on personal business property. Establishes a business franchise tax. Increases the adjusted gross income tax rate. Eliminates the state property tax replacement credit. Transfers to the state certain court fees and a part of the excise tax and financial institution tax revenue previously distributed to counties. Increases the sales tax to 6%. Establishes the tax relief fund and the tuition support stabilization fund.

Effective: July 1, 2002; January 1, 2003; July 1, 2003.





Dobis, Wolkins




    November 20, 2001, read first time and referred to Committee on Ways and Means.







Introduced

Second Regular Session 112th General Assembly (2002)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2001 General Assembly.

HOUSE BILL No. 1003



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation and to make an appropriation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-4-6.1-1.1; (02)IN1003.1.1. -->     SECTION 1. IC 4-4-6.1-1.1 , AS AMENDED BY P.L.73-2000, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1.1. As used in this chapter, "zone business" means any entity that accesses at least one (1) tax credit or exemption incentive available under this chapter IC 6-1.1-20.8, IC 6-2.1-3-32, or IC 6-3-3-10.
SOURCE: IC 4-4-6.1-2; (02)IN1003.1.2. -->     SECTION 2. IC 4-4-6.1-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) The board has the following powers, in addition to other powers which are contained in this chapter:
        (1) To review and approve or reject all applicants for enterprise zone designation, according to the criteria for designation which this chapter provides.
        (2) To waive or modify rules as provided in this chapter.
        (3) To provide a procedure by which enterprise zones may be monitored and evaluated on an annual basis.
        (4) To adopt rules for the disqualification of a zone business from

eligibility for any or all incentives available to zone businesses, if that zone business does not do one (1) of the following:
            (A) If all of its incentives, as contained in the summary required under section 2.5 of this chapter, exceed one thousand dollars ($1,000) in any year, pay a registration fee to the board in an amount equal to one percent (1%) of all of its incentives.
            (B) Use all of its incentives, except for the amount of registration fee, for its property or employees in the zone.
            (C) Remain open and operating as a zone business for twelve (12) months of the assessment year for which the incentive is claimed.
        (5) To disqualify a zone business from eligibility for any or all incentives available to zone businesses in accordance with the procedures set forth in the board's rules.
        (6) After a recommendation from an urban enterprise association, to modify an enterprise zone boundary if the board determines that the modification:
            (A) is in the best interests of the zone; and
            (B) meets the threshold criteria and factors set forth in section 3 of this chapter.
        (7) To employ staff and contract for services.
        (8) To receive funds from any source and expend these funds for the administration and promotion of the enterprise zone program.
        (9) To make determinations under IC 6-3.1-11 concerning the designation of locations as industrial recovery sites. and the availability of the credit provided by IC 6-1.1-20.7 to persons owning inventory located on an industrial recovery site.
        (10) To make determinations under IC 6-1.1-20.7 and IC 6-3.1-11 concerning the disqualification of persons from claiming credits provided by those chapters that chapter in appropriate cases.
        (11) To make determinations under IC 6-3.1-11.5 concerning the designation of locations as military base recovery sites and the availability of the credit provided by IC 6-3.1-11.5 to persons making qualified investments in military base recovery sites.
        (12) To make determinations under IC 6-3.1-11.5 concerning the disqualification of persons from claiming the credit provided by IC 6-3.1-11.5 in appropriate cases.
    (b) In addition to a registration fee paid under subsection (a)(4), each zone business that receives a credit under this chapter shall assist the zone urban enterprise association created under section 4 of this chapter in an amount determined by the legislative body of the

municipality in which the zone is located. If a zone business does not assist an urban enterprise association, the legislative body of the municipality in which the zone is located may pass an ordinance disqualifying a zone business from eligibility for all credits or incentives available to zone businesses. If a legislative body disqualifies a zone business under this subsection, the legislative body shall notify the board, the state board of tax commissioners, and the department of state revenue in writing within thirty (30) days of the passage of the ordinance disqualifying the zone business. Disqualification of a zone business under this section is effective beginning with the taxable year in which the ordinance disqualifying the zone business is passed.

SOURCE: IC 4-4-28-14; (02)IN1003.1.3. -->     SECTION 3. IC 4-4-28-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) An account must earn interest at a rate that is competitive in the county where the account is located.
    (b) Interest earned on an account during a taxable year is not subject to taxation under IC 6-2.1, IC 6-3 or IC 6-5.5.
SOURCE: IC 4-10-13-3; (02)IN1003.1.4. -->     SECTION 4. IC 4-10-13-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The Indiana department of state revenue is hereby authorized and directed to prepare and publish each year the following report, which shall contain the following data and information:
        (1) a recital of the number of taxpayers, the amount of gross collections, the amount of net collections, the amount of refunds, the amount of collection allowances, the amount of administrative costs, and the amount of delinquencies by type of tax collected by the department.
        (2) Relative to the gross income tax, a recital of the number of taxpayers, the total amount of gross income tax collected, the total amount of exemptions allowed and the total amount of nontaxable income. It shall also include a recital of the number of taxpayers and the total amount of gross income tax received from farmers, manufacturing interests, wholesalers, retailers, transportation and communication interest, public utilities, financial and insurance interests, real estate interests, personal service businesses, and salaries and wages received from every other source to the extent such information is available from gross income tax returns.
        (3) A breakdown of gross income tax collections received from corporate taxpayers, from unincorporated businesses, from income taxed at the rate of three eighths of one per cent (3/8%) and one and one-half per cent (1 1/2%), and from types of

businesses as described in subsection (2) of this section.
Such report shall be made available for inspection as soon as it is prepared and shall be published, in the manner hereinafter provided, by the Indiana state department of revenue not later than December 31st, 31 following the end of each fiscal year.

SOURCE: IC 4-10-20; (02)IN1003.1.5. -->     SECTION 5. IC 4-10-20 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 20. 21st Century Revenue Stabilization Plan
    Sec. 1. As used in this chapter, "budget agency" refers to the budget agency established by IC 4-12-1-3.
    Sec. 2. As used in this chapter, "budget director" has the meaning set forth in IC 4-12-1-2.     Sec. 3. As used in this chapter, "general fund revenue" has the meaning set forth in IC 4-10-18-1.
    Sec. 4. As used in this chapter, "political subdivision" has the meaning set forth in IC 36-1-2-13.
    Sec. 5. As used in this chapter, "tax relief fund" refers to the tax relief fund established by section 9 of this chapter.
    Sec. 6. As used in this chapter, "tuition support" has the meaning set forth in IC 21-3-1.7-4.
    Sec. 7. As used in this chapter, "tuition support stabilization fund" refers to the tuition support stabilization fund established by section 10 of this chapter.
    Sec. 8. As used in this chapter, "unused 21st century tax plan balance" refers to the amount determined for a state fiscal year under section 11 of this chapter.
    Sec. 9. (a) The tax relief fund is established.
    (b) The purpose of the tax relief fund is to provide a source of money to:
        (1) maintain:
            (A) inventory tax replacement credit distributions; and
            (B) homestead credit distributions;
        from the state to political subdivisions; and
        (2) provide a source of money to meet the following obligations assumed by the state:
            (A) assumption of county contributions to the medical assistance to wards program under IC 12-13-8 (repealed);
            (B) assumption of county contribution to the children with special health care needs program under IC 16-35-3 (repealed);
            (C) assumption of county contribution to the hospital care

for the indigent program or the uninsured parent program required under IC 12-16-14 (repealed);
            (D) assumption of county obligation for child services (as defined in IC 12-17-7-1);
            (E) assumption of the obligation to pay court personnel and other operating expenditures described in IC 33-1-18-6; and
            (F) additional distributions to political subdivisions for police and firefighter pension relief;
when economic conditions result in lowered collections of general tax revenues as determined by the budget agency under section 14 of this chapter.
    (c) The tax relief fund shall be administered by the treasurer of state.
    (d) The treasurer of state shall invest the money in the tax relief 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 tax relief fund.
    (e) Money in the tax relief fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 10. (a) The tuition support stabilization fund is established.
    (b) The purpose of the tuition support stabilization fund is to provide a source of money to maintain tuition support distributions from the state to school corporations when economic conditions result in lowered collections of general tax revenues as determined by the budget agency under section 15 of this chapter.
    (c) The tuition support stabilization fund shall be administered by the treasurer of state.
    (d) The treasurer of state shall invest the money in the tuition support stabilization 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 tuition support stabilization fund.
    (e) Money in the tuition support stabilization fund at the end of a state fiscal year does not revert to the state general fund.
    Sec. 11. (a) At the same time that the budget director makes a determination under IC 4-10-18-5 (determination of appropriations to or from the counter-cyclical revenue and economic stabilization fund), the budget director shall determine the unused 21st century tax plan balance for the immediately preceding year under this section.


    (b) The unused 21st century tax plan balance for a state fiscal year is the amount determined under the last STEP of the following formula:
        STEP ONE: Calculate the net amount of additional state general fund revenue accruing to the state general fund in the immediately preceding state fiscal year as a result of:
            (A) the enactment of a business franchise tax (IC 6-2.2);
            (B) elimination of the property tax replacement fund (IC 6-1.1-21 (repealed));
            (C) the increase in the adjusted gross income tax rate (IC 6-3-1 through IC 6-3-7) for persons after offsetting the impact of the increased dependent deduction (IC 6-3-1-3.5), the renter's deduction (IC 6-3-2-6), and the earned income credit (IC 6-3.1-21);
            (D) the increase in the adjusted gross income tax rate on corporations (IC 6-3-1 through IC 6-3-7) after offsetting the impact on state tax liability of the establishment of the investment credit (IC 6-3.1-24) and increasing the research expense credit (IC 6-3.1-4);
            (E) the increase in the state gross retail and use taxes (IC 6-2.5);
            (F) the elimination of the gross income tax (IC 6-2.1 (repealed)); and
            (G) the elimination of the supplemental net income tax (IC 6-3-8)
        enacted by the general assembly in 2002.
        STEP TWO: Calculate the amount of the additional expenses incurred by the state in the immediately preceding state fiscal year as a result of the:
            (A) assumption of county contributions to the medical assistance to wards program under IC 12-13-8 (repealed);
            (B) assumption of county contribution to the children with special health care needs program under IC 16-35-3 (repealed);
            (C) assumption of county contribution to the hospital care for the indigent program or the uninsured parent program required under IC 12-16-14 (repealed);
            (D) assumption of county obligation for child services (as defined in IC 12-17-7-1);
            (E) assumption of the obligation to pay court personnel and other operating expenditures described in IC 33-1-18-6;
            (F) assumption of the obligation to provide additional state tuition support to replace the fifty percent (50%) reduction in school general fund property tax levies (IC 6-1.1-19; IC 21-3-1.7);
            (G) increased homestead credit (IC 6-1.1-20.9); and
            (H) inventory property tax replacement credit (IC 6-1.1-21.3);
        enacted by the general assembly in 2002.
        STEP THREE: Determine the greater of the following:
            (A) Zero (0).
            (B) The result of the STEP ONE amount minus the STEP TWO amount.
    Sec. 12. As soon as possible after making the determination under section 11 of this chapter, the budget director shall certify the unused 21st century tax plan balance amount determined under section 11 of this chapter to the treasurer of state.
    Sec. 13. If the unused 21st century tax plan balance amount certified under section 12 of this chapter is greater than zero (0), the treasurer of state shall transfer from the state general fund the following amounts:
        (1) Fifty percent (50%) of the unused 21st century tax plan balance to the tax relief fund.
        (2) Fifty percent (50%) of the unused 21st century tax plan balance to the tuition support stabilization fund.
    Sec. 14. An amount of money in the tax relief fund determined by the budget director may be used to meet the state's obligations to:
        (1) maintain:
            (A) inventory tax replacement credit distributions; and
            (B) homestead credit distributions;
        from the state to political subdivisions; and
        (2) provide a source of money to meet the following obligations assumed by the state:
            (A) assumption of county contributions to the medical assistance to wards program under IC 12-13-8 (repealed);
            (B) assumption of county contribution to the children with special health care needs program under IC 16-35-3 (repealed);
            (C) assumption of county contribution to the hospital care for the indigent program or the uninsured parent program required under IC 12-16-14 (repealed);
            (D) assumption of county obligation for child services (as

defined in IC 12-17-7-1);
            (E) assumption of the obligation to pay court personnel and other operating expenditures described in IC 33-1-18-6; and
            (F) additional distributions to political subdivisions for police and firefighter pension relief;
if the budget director determines that general fund revenues being collected in the state fiscal year are insufficient to meet the state's obligations for the distributions described in subdivisions (1) and (2).

    Sec. 15. An amount of money in the tuition support stabilization fund determined by the budget director may be used to meet the state's obligations for tuition support distributions to school corporations in a state fiscal year if the budget director determines that general fund revenues being collected in the state fiscal year are insufficient to meet the state's obligations for tuition support.

SOURCE: IC 4-13-2-20; (02)IN1003.1.6. -->     SECTION 6. IC 4-13-2-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 20. (a) Except as otherwise provided in this section, IC 20-1-1.8-17.2, or IC 12-8-10-7, payment for any services, supplies, materials, or equipment shall not be paid from any fund or state money in advance of receipt of such services, supplies, materials, or equipment by the state.
    (b) With the prior approval of the budget agency, payment may be made in advance for any of the following:
        (1) War surplus property.
        (2) Property purchased or leased from the United States government or its agencies.
        (3) Dues and subscriptions.
        (4) License fees.
        (5) Insurance premiums.
        (6) Utility connection charges.
        (7) Federal grant programs where advance funding is not prohibited and, except as provided in subsection (i), the contracting party posts sufficient security to cover the amount advanced.
        (8) Grants of state funds authorized by statute.
        (9) Employee expense vouchers.
        (10) Beneficiary payments to the administrator of a program of self-insurance.
        (11) Services, supplies, materials, or equipment to be received from an agency or from a body corporate and politic.
        (12) Expenses for the operation of offices that represent the state

under contracts with the department of commerce and that are located outside Indiana.
        (13) Services, supplies, materials, or equipment to be used for more than one (1) year under a discounted contractual arrangement funded through a designated leasing entity.
        (14) Maintenance of equipment and maintenance of software not exceeding an annual amount of one thousand five hundred dollars ($1,500) for each piece of equipment or each software license.
         (15) Expenses (other than personal services) for the operation of a court.
    (c) Any state agency and any state college or university supported in whole or in part by state funds may make advance payments to its employees for duly accountable expenses exceeding ten dollars ($10) incurred through travel approved by the employee's respective agency director in the case of a state agency and by a duly authorized person in the case of any such state college or university.
    (d) The auditor of state may, with the approval of the budget agency and of the commissioner of the Indiana department of administration:
        (1) appoint a special disbursing officer for any state agency or group of agencies where it is necessary or expedient that a special record be kept of a particular class of disbursements or where disbursements are made from a special fund; and
        (2) approve advances to the special disbursing officer or officers from any available appropriation for the purpose.
    (e) The auditor of state shall issue the auditor's warrant to the special disbursing officer to be disbursed by the disbursing officer as provided in this section. Special disbursing officers shall in no event make disbursements or payments for supplies or current operating expenses of any agency or for contractual services or equipment not purchased or contracted for in accordance with this chapter and IC 5-22. No special disbursing officer shall be appointed and no money shall be advanced until procedures covering the operations of special disbursing officers have been adopted by the Indiana department of administration and approved by the budget agency. These procedures must include the following provisions:
        (1) Provisions establishing the authorized levels of special disbursing officer accounts and establishing the maximum amount which may be expended on a single purchase from special disbursing officer funds without prior approval.
        (2) Provisions requiring that each time a special disbursing officer makes an accounting to the auditor of state of the expenditure of the advanced funds, the auditor of state shall request that the

Indiana department of administration review the accounting for compliance with IC 5-22.
        (3) A provision that, unless otherwise approved by the commissioner of the Indiana department of administration, the special disbursing officer must be the same individual as the procurements agent under IC 4-13-1.3-5.
        (4) A provision that each disbursing officer be trained by the Indiana department of administration in the proper handling of money advanced to the officer under this section.
    (f) The commissioner of the Indiana department of administration shall cite in a letter to the special disbursing officer the exact purpose or purposes for which the money advanced may be expended.
    (g) A special disbursing officer may issue a check to a person without requiring a certification under IC 5-11-10-1 if the officer:
        (1) is authorized to make the disbursement; and
        (2) complies with procedures adopted by the state board of accounts to govern the issuance of checks under this subsection.
    (h) A special disbursing officer is not personally liable for a check issued under subsection (g) if:
        (1) the officer complies with the procedures described in subsection (g); and
        (2) funds are appropriated and available to pay the warrant.
    (i) For contracts entered into between the department of workforce development or the Indiana commission on vocational and technical education and:
        (1) a school corporation (as defined in IC 20-10.1-1-1); or
        (2) a state educational institution (as defined in IC 20-12-0.5-1);
the contracting parties are not required to post security to cover the amount advanced.

SOURCE: IC 4-21.5-2-4; (02)IN1003.1.7. -->     SECTION 7. IC 4-21.5-2-4, AS AMENDED BY P.L.198-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) This article does not apply to any of the following agencies:
        (1) The governor.
        (2) The state board of accounts.
        (3) The state educational institutions (as defined by IC 20-12-0.5-1).
        (4) The department of workforce development.
        (5) The unemployment insurance review board of the department of workforce development.
        (6) The worker's compensation board.
        (7) The military officers or boards.
        (8) The Indiana utility regulatory commission.
        (9) The department of state revenue (excluding an agency action related to the licensure of private employment agencies or an agency action under IC 6-2.2-12-2 through IC 6-2.2-12-7).
    (b) This article does not apply to action related to railroad rate and tariff regulation by the Indiana department of transportation.
SOURCE: IC 5-2-1-9; (02)IN1003.1.8. -->     SECTION 8. IC 5-2-1-9, AS AMENDED BY P.L.45-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. (a) The board shall adopt in accordance with IC 4-22-2 all necessary rules to carry out the provisions of this chapter. Such rules, which shall be adopted only after necessary and proper investigation and inquiry by the board, shall include the establishment of the following:
        (1) Minimum standards of physical, educational, mental, and moral fitness which shall govern the acceptance of any person for training by any law enforcement training school or academy meeting or exceeding the minimum standards established pursuant to this chapter.
        (2) Minimum standards for law enforcement training schools administered by towns, cities, counties, the northwest Indiana law enforcement training center, agencies, or departments of the state.
        (3) Minimum standards for courses of study, attendance requirements, equipment, and facilities for approved town, city, county, and state law enforcement officer, police reserve officer, and conservation reserve officer training schools.
        (4) Minimum standards for a course of study on cultural diversity awareness that must be required for each person accepted for training at a law enforcement training school or academy.
        (5) Minimum qualifications for instructors at approved law enforcement training schools.
        (6) Minimum basic training requirements which law enforcement officers appointed to probationary terms shall complete before being eligible for continued or permanent employment.
        (7) Minimum basic training requirements which law enforcement officers not appointed for probationary terms but 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.
    (b) Except as provided in subsection (l), 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 in such cases 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) and (l), 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 the northwest Indiana law enforcement training center under section 15.2 of this chapter, the basic training requirements established by the board under this chapter.
    (e) Before a law enforcement officer appointed after June 30, 1993, completes the basic training requirements, the law enforcement officer may exercise the police powers described in subsection (d) if the officer successfully completes the pre-basic course established in subsection (f). Successful completion of the pre-basic course authorizes a law enforcement officer to exercise the police powers described in subsection (d) for one (1) year after the date the law enforcement officer is appointed.
    (f) The board shall adopt rules under IC 4-22-2 to establish a pre-basic course for the purpose of training:
        (1) law enforcement officers;
        (2) police reserve officers (as described in IC 36-8-3-20); and
        (3) conservation reserve officers (as described in IC 14-9-8-27);
regarding the subjects of arrest, search and seizure, use of force, and firearm qualification. The pre-basic course must be offered on a periodic basis throughout the year at regional sites statewide. The

pre-basic course must consist of forty (40) hours of course work. The board may prepare a pre-basic course on videotape that must be used in conjunction with live instruction. The board shall provide the course material, the instructors, and the facilities at the regional sites throughout the state that are used for the pre-basic course. In addition, the board may certify pre-basic courses that may be conducted by other public or private training entities, including colleges and universities.
    (g) The board shall adopt rules under IC 4-22-2 to establish a mandatory inservice training program for police officers. After June 30, 1993, a law enforcement officer who has satisfactorily completed the basic training and has been appointed to a law enforcement department or agency on either a full-time or part-time basis is not eligible for continued employment unless the officer satisfactorily completes a minimum of sixteen (16) hours each year of inservice training in any subject area included in the law enforcement academy's basic training course or other job related subjects that are approved by the board as determined by the law enforcement department's or agency's needs. In addition, a certified academy staff may develop and make available inservice training programs on a regional or local basis. The board may approve courses offered by other public or private training entities, including colleges and universities, as necessary in order to ensure the availability of an adequate number of inservice training programs. The board may waive an officer's inservice training requirements if the board determines that the officer's reason for lacking the required amount of inservice training hours is due to any of the following:
        (1) An emergency situation.
        (2) The unavailability of courses.
    (h) The board shall also adopt rules establishing a town marshal basic training program, subject to the following:
        (1) The program must require fewer hours of instruction and class attendance and fewer courses of study than are required for the mandated basic training program.
        (2) Certain parts of the course materials may be studied by a candidate at the candidate's home in order to fulfill requirements of the program.
        (3) Law enforcement officers successfully completing the requirements of the program are eligible for appointment only in towns employing the town marshal system (IC 36-5-7) and having no more than one (1) marshal and two (2) deputies.
        (4) The limitation imposed by subdivision (3) does not apply to an officer who has successfully completed the mandated basic training program.


        (5) The time limitations imposed by subsections (b) and (c) for completing the training are also applicable to the town marshal basic training program.
    (i) The board shall adopt rules under IC 4-22-2 to establish a police chief executive training program. The program must include training in the following areas:
        (1) Liability.
        (2) Media relations.
        (3) Accounting and administration.
        (4) Discipline.
        (5) Department policy making.
        (6) Firearm policies.
        (7) Department programs.
    (j) A police chief shall apply for admission to the police chief executive training program within two (2) months of the date the police chief initially takes office. A police chief must successfully complete the police chief executive training program within six (6) months of the date the police chief initially takes office. However, if space in the program is not available at a time that will allow the police chief to complete the program within six (6) months of the date the police chief initially takes office, the police chief must successfully complete the next available program that is offered to the police chief after the police chief initially takes office.
    (k) A police chief who fails to comply with subsection (j) may not serve as the police chief until the police chief has completed the police chief executive training program. For the purposes of this subsection and subsection (j), "police chief" refers to:
        (1) the police chief of any city; and
        (2) the police chief of any town having a metropolitan police department.
A town marshal is not considered to be a police chief for these purposes, but a town marshal may enroll in the police chief executive training program.
    (l) An investigator in the arson division of the office of the state fire marshal appointed:
        (1) before January 1, 1994, is not required; or
        (2) after December 31, 1993, is required;
to comply with the basic training standards established under this section.
    (m) The board shall adopt rules under IC 4-22-2 to establish a program to certify handgun safety courses, including courses offered in the private sector, that meet standards approved by the board for

training probation officers in handgun safety as required by IC 11-13-1-3.5(3). IC 33-22-5-3.

SOURCE: IC 5-10.3-11-4.9; (02)IN1003.1.9. -->     SECTION 9. IC 5-10.3-11-4.9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4.9. (a) In addition to the amounts distributed under sections 4 through 4.7 of this chapter, beginning in 2003 and each year thereafter, the auditor of state shall distribute the amount appropriated under subsection (d) to units of local government. The amount to be distributed to each unit of local government shall be determined by the state board under the following STEPS:
        STEP ONE: Determine the amount of the payments to be made by each unit in the calendar year for benefits under the police and firefighter pension funds established by IC 36-8-6, IC 36-8-7, and IC 36-8-7.5, as estimated by the state board under section 4 of this chapter.
        STEP TWO: Determine the sum of the STEP ONE amounts.
        STEP THREE: Divide thirty million dollars ($30,000,000) by the STEP TWO sum.
        STEP FOUR: Multiply the amount determined for the unit under STEP ONE by the STEP THREE quotient.
    (b) Distributions received by a local unit of government under this section may be used only for pension payments, in the same manner as distributions received from the pension relief fund.
    (c) The distributions required by this section shall be made in two (2) equal installments before July 1 and before October 2 of each year, on warrants issued by the auditor of state drawn on the treasurer of state.
    (d) There is annually appropriated thirty million dollars ($30,000,000) from the state general fund to make the distributions required by this section. The appropriation made by this subsection is in addition to any other appropriation made to units of local government for benefits under the police and firefighter pension funds established by IC 36-8-6, IC 36-8-7, and IC 36-8-7.5.
    (e) Before September 1 of 2002 and each year thereafter, the state board shall notify the auditor of state and the department of local government finance of the amount to be distributed to each unit of local government under this section in the following calendar year. The department of local government finance shall:
        (1) determine without regard to this section the ad valorem property tax levy of each local unit of government for property taxes first due and payable in the following calendar

year; and
        (2) reduce the ad valorem property tax levy of each local unit of government for property taxes first due and payable in the following calendar year determined under subdivision (1) by an amount equal to the distribution to be received by the local unit under this section in that calendar year.

SOURCE: IC 6-1.1-3-7.5; (02)IN1003.1.10. -->     SECTION 10. IC 6-1.1-3-7.5, AS AMENDED BY P.L.198-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7.5. (a) A taxpayer may file an amended personal property tax return, in conformity with the rules adopted by the state board of tax commissioners (before the board was abolished) or the department of local government finance, not more than six (6) months after the later of the following:
        (1) The filing date for the original personal property tax return. if the taxpayer is not granted an extension in which to file under section 7 of this chapter.
        (2) The extension date for the original personal property tax return, if the taxpayer is granted an extension under section 7 of this chapter.
    (b) A tax adjustment related to an amended personal property tax return shall be made in conformity with rules adopted under IC 4-22-2 by the state board of tax commissioners (before the board was abolished) or the department of local government finance.
    (c) If a taxpayer wishes to correct an error made by the taxpayer on the taxpayer's original personal property tax return, the taxpayer must file an amended personal property tax return under this section within the time required by subsection (a). A taxpayer may claim on an amended personal property tax return any adjustment or exemption that would have been allowable under any statute or rule adopted by the state board of tax commissioners (before the board was abolished) or the department of local government finance if the adjustment or exemption had been claimed on the original personal property tax return.
    (d) Notwithstanding any other provision, if:
        (1) a taxpayer files an amended personal property tax return under this section in order to correct an error made by the taxpayer on the taxpayer's original personal property tax return; and
        (2) the taxpayer is entitled to a refund of personal property taxes paid by the taxpayer under the original personal property tax return;
the taxpayer is not entitled to interest on the refund.
    (e) If a taxpayer files an amended personal property tax return for

a year before July 16 of that year, the taxpayer shall pay taxes payable in the immediately succeeding year based on the assessed value reported on the amended return.
    (f) If a taxpayer files an amended personal property tax return for a year after July 15 of that year, the taxpayer shall pay taxes payable in the immediately succeeding year based on the assessed value reported on the taxpayer's original personal property tax return. A taxpayer that paid taxes under this subsection is entitled to a credit in the amount of taxes paid by the taxpayer on the remainder of:
        (1) the assessed value reported on the taxpayer's original personal property tax return; minus
        (2) the finally determined assessed value that results from the filing of the taxpayer's amended personal property tax return.
Except as provided in subsection (k), the county auditor shall apply the credit against the taxpayer's property taxes on personal property payable in the year that immediately succeeds the year in which the taxes were paid.
    (g) If the amount of the credit to which the taxpayer is entitled under subsection (f) exceeds the amount of the taxpayer's property taxes on personal property payable in the year that immediately succeeds the year in which the taxes were paid, the county auditor shall apply the amount of the excess credit against the taxpayer's property taxes on personal property in the next succeeding year.
    (h) Not later than December 31 of the year in which a credit is applied under subsection (g), the county auditor shall refund to the taxpayer the amount of any excess credit that remains after application of the credit under subsection (g).
    (i) The taxpayer is not required to file an application for:
        (1) a credit under subsection (f) or (g); or
        (2) a refund under subsection (h).
    (j) Before August 1 of each year, the county auditor shall provide to each taxing unit in the county an estimate of the total amount of the credits under subsection (f) or (g) that will be applied against taxes imposed by the taxing unit that are payable in the immediately succeeding year.
    (k) A county auditor may refund a credit amount to a taxpayer before the time the credit would otherwise be applied against property tax payments under this section.
     (l) The county auditor shall report to the department of state revenue any refund or credit to a taxpayer made under this section resulting from a reduction of the amount of an assessment of business personal property (as defined in IC 6-3.1-24-2).


SOURCE: IC 6-1.1-15-3; (02)IN1003.1.11. -->     SECTION 11. IC 6-1.1-15-3, AS AMENDED BY P.L.198-2001, SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) A taxpayer may obtain a review by the Indiana board of a county property tax assessment board of appeals action with respect to the assessment of that taxpayer's tangible property if the county property tax assessment board of appeals' action requires the giving of notice to the taxpayer. A township assessor, county assessor, member of a county property tax assessment board of appeals, or county property tax assessment board of appeals that made the original determination under appeal under this section or a county auditor who made the original enterprise zone inventory credit determination under appeal under IC 6-1.1-20.8, is a party to the review under this section to defend the determination. At the time that notice is given to the taxpayer, the taxpayer shall also be informed in writing of:
        (1) the taxpayer's opportunity for review under this section; and
        (2) the procedures the taxpayer must follow in order to obtain review under this section.
    (b) A township assessor or county assessor may obtain a review by the Indiana board of any assessment which the township assessor or the county assessor has made, upon which the township assessor or the county assessor has passed, or which has been made over the township assessor's or the county assessor's protest.
    (c) In order to obtain a review by the Indiana board under this section, the party must file a petition for review with the appropriate county assessor within thirty (30) days after the notice of the county property tax assessment board of appeals action is given to the taxpayer.
    (d) The department of local government finance shall prescribe the form of the petition for review of an assessment determination by the county property tax assessment board of appeals. The department shall issue instructions for completion of the form. The form and the instructions must be clear, simple, and understandable to the average individual. An appeal of such a determination must be made on the form prescribed by the department. The form must require the petitioner to specify the following:
        (1) The items listed in section 1(e)(1) and 1(e)(2) of this chapter.
        (2) The reasons why the petitioner believes that the assessment determination by the county property tax assessment board of appeals is erroneous.
    (e) The county assessor shall transmit the petition for review to the Indiana board within ten (10) days after it is filed.
    (f) If a township assessor or a member of the county property tax assessment board of appeals files a petition for review under this section concerning the assessment of a taxpayer's property, the county assessor must send a copy of the petition to the taxpayer.
SOURCE: IC 6-1.1-15-5; (02)IN1003.1.12. -->     SECTION 12. IC 6-1.1-15-5, AS AMENDED BY P.L.198-2001, SECTION 45, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) Within fifteen (15) days after the Indiana board gives notice of its final determination under section 4 of this chapter to the party or the maximum allowable time for the issuance of a final determination by the Indiana board under section 4 of this chapter expires, a party to the proceeding may request a rehearing before the Indiana board. The Indiana board may conduct a rehearing and affirm or modify its final determination, giving the same notices after the rehearing as are required by section 4 of this chapter. The Indiana board has fifteen (15) days after receiving a petition for a rehearing to determine whether to grant a rehearing. Failure to grant a rehearing within fifteen (15) days after receiving the petition shall be treated as a final determination to deny the petition. A petition for a rehearing does not toll the time in which to file a petition for judicial review unless the petition for rehearing is granted. If the Indiana board determines to rehear a final determination, the Indiana board:
        (1) may conduct the additional hearings that the Indiana board determines necessary or review the written record without additional hearings; and
        (2) shall issue a final determination within ninety (90) days after notifying the parties that the Indiana board will rehear the final determination.
Failure of the Indiana board to make a final determination within the time allowed under subdivision (2) shall be treated as a final determination affirming the original decision of the Indiana board.
    (b) A person may petition for judicial review of the final determination of the Indiana board regarding the assessment of that person's tangible property. The action shall be taken to the tax court under IC 4-21.5-5. Petitions for judicial review may be consolidated at the request of the appellants if it can be done in the interest of justice. The property tax assessment board of appeals that made the determination under appeal under this section may, with the approval of the county executive, file an amicus curiae brief in the review proceeding under this section. The expenses incurred by the property tax assessment board of appeals in filing the amicus curiae brief shall be paid from the reassessment fund under IC 6-1.1-4-27. In addition, the executive of a taxing unit may file an amicus curiae brief in the

review proceeding under this section if the property whose assessment is under appeal is subject to assessment by that taxing unit. A (1) township assessor, county assessor, member of a county property tax assessment board of appeals, or county property tax assessment board of appeals that made the original assessment determination under appeal under this section or (2) county auditor who made the original enterprise zone inventory credit determination under appeal under IC 6-1.1-20.8; is a party to the review under this section to defend the determination.
    (c) To initiate a proceeding for judicial review under this section, a person must take the action required by subsection (b) within:
        (1) forty-five (45) days after the Indiana board gives the person notice of its final determination unless a rehearing is conducted under subsection (a); or
        (2) thirty (30) days after the Indiana board gives the person notice under subsection (a) of its final determination, if a rehearing is conducted under subsection (a) or the maximum time elapses for the Indiana board to make a determination under this section.
    (d) The failure of the Indiana board to conduct a hearing within the period prescribed in section 4(f) or 4(g) of this chapter does not constitute notice to the person of an Indiana board final determination.
    (e) The county executive may petition for judicial review to the tax court in the manner prescribed in this section upon request by the county assessor or elected township assessor. If the county executive determines upon a request under this subsection to not appeal to the tax court, the entity described in subsection (b) that made the original determination under appeal under this section may take an appeal to the tax court in the manner prescribed in this section using funds from that entity's budget.

SOURCE: IC 6-1.1-15-11; (02)IN1003.1.13. -->     SECTION 13. IC 6-1.1-15-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. If a review or appeal authorized under this chapter results in a reduction of the amount of an assessment or if the state board of tax commissioners department of local government finance on its own motion reduces an assessment, the taxpayer is entitled to a credit in the amount of any overpayment of tax on the next successive tax installment, if any, due in that year. If, after the credit is given, a further amount is due the taxpayer, he may file a claim for the amount due. If the claim is allowed by the board of county commissioners, the county auditor shall, without an appropriation being required, pay the amount due the taxpayer. The county auditor shall charge the amount refunded to the taxpayer against the accounts of the various taxing units to which the

overpayment has been paid. The county auditor shall report to the department of state revenue any refund or credit to a taxpayer made under this section resulting from a reduction of the amount of an assessment of business personal property (as defined in IC 6-3.1-24-2).

SOURCE: IC 6-1.1-17-16; (02)IN1003.1.14. -->     SECTION 14. IC 6-1.1-17-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 16. (a) Subject to the limitations and requirements prescribed in this section, the state board of tax commissioners department of local government finance:
        (1)
may revise, reduce, or increase a political subdivision's budget, tax rate, or tax levy; which and
         (2) shall reduce under IC 5-10.3-11-4.9(e) the levy of a unit of local government;
the board department reviews under section 8 or 10 of this chapter.
    (b) Subject to the limitations and requirements prescribed in this section, the state board of tax commissioners department of local government finance may review, revise, reduce, or increase the budget, tax rate, or tax levy of any of the political subdivisions whose tax rates compose the aggregate tax rate within a political subdivision whose budget, tax rate, or tax levy is the subject of an appeal initiated under this chapter.
    (c) Except as provided in subsection (i), before the state board of tax commissioners department of local government finance reviews, revises, reduces, or increases a political subdivision's budget, tax rate, or tax levy under this section, the board department must hold a public hearing on the budget, tax rate, and tax levy. The board department shall hold the hearing in the county in which the political subdivision is located. The board department may consider the budgets, tax rates, and tax levies of several political subdivisions at the same public hearing. At least five (5) days before the date fixed for a public hearing, the board department shall give notice of the time and place of the hearing and of the budgets, levies, and tax rates to be considered at the hearing. The board department shall publish the notice in two (2) newspapers of general circulation published in the county. However, if only one (1) newspaper of general circulation is published in the county, the board department shall publish the notice in that newspaper.
    (d) Except as provided in subsection (h), IC 6-1.1-19, or IC 6-1.1-18.5, the state board of tax commissioners department of local government finance may not increase a political subdivision's budget, tax rate, or tax levy to an amount which exceeds the amount originally fixed by the political subdivision. The state board of tax

commissioners department shall give the political subdivision written notification specifying any revision, reduction, or increase the state board of tax commissioners department proposes in a political subdivision's tax levy or tax rate. The political subdivision has one (1) week from the date the political subdivision receives the notice to provide a written response to the state board of tax commissioners' department's Indianapolis office specifying how to make the required reductions in the amount budgeted for each office or department. The state board of tax commissioners department shall make reductions as specified in the political subdivision's response if the response is provided as required by this subsection and sufficiently specifies all necessary reductions. The state board of tax commissioners department may make a revision, a reduction, or an increase in a political subdivision's budget only in the total amounts budgeted for each office or department within each of the major budget classifications prescribed by the state board of accounts.
    (e) The state board of tax commissioners department of local government finance may not approve a levy for lease payments by a city, town, county, library, or school corporation if the lease payments are payable to a building corporation for use by the building corporation for debt service on bonds and if:
        (1) no bonds of the building corporation are outstanding; or
        (2) the building corporation has enough legally available funds on hand to redeem all outstanding bonds payable from the particular lease rental levy requested.
    (f) The action of the state board of tax commissioners department of local government finance on a budget, tax rate, or tax levy is final. The board department shall certify its action to:
        (1) the county auditor; and
        (2) the political subdivision if the state board department acts pursuant to an appeal initiated by the political subdivision.
    (g) The state board of tax commissioners department of local government finance is expressly directed to complete the duties assigned to it under this section not later than February 15th of each year for taxes to be collected during that year.
    (h) Subject to the provisions of all applicable statutes, the state board of tax commissioners department of local government finance may increase a political subdivision's tax levy to an amount that exceeds the amount originally fixed by the political subdivision if the increase is:
        (1) requested in writing by the officers of the political subdivision;


        (2) either:
            (A) based on information first obtained by the political subdivision after the public hearing under section 3 of this chapter; or
            (B) results from an inadvertent mathematical error made in determining the levy; and
        (3) published by the political subdivision according to a notice provided by the state board of tax commissioners. department of local government finance.
    (i) The state board of tax commissioners department of local government finance shall annually review the budget of each school corporation not later than April 1. The state board of tax commissioners department shall give the school corporation written notification specifying any revision, reduction, or increase the state board of tax commissioners department proposes in the school corporation's budget. A public hearing is not required in connection with this review of the budget.
SOURCE: IC 6-1.1-18-3; (02)IN1003.1.15. -->     SECTION 15. IC 6-1.1-18-3, AS AMENDED BY P.L.273-1999, SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) Except as provided in subsection (b), the sum of all tax rates for all political subdivisions imposed on tangible property within a political subdivision may not exceed:
        (1) forty-one and sixty-seven hundredths cents ($0.4167) on each one hundred dollars ($100) of assessed valuation in territory outside the corporate limits of a city or town; or
        (2) sixty-six and sixty-seven hundredths cents ($0.6667) on each one hundred dollars ($100) of assessed valuation in territory inside the corporate limits of a city or town.
    (b) The proper officers of a political subdivision shall fix tax rates which are sufficient to provide funds for the purposes itemized in this subsection. The portion of a tax rate fixed by a political subdivision shall not be considered in computing the tax rate limits prescribed in subsection (a) if that portion is to be used for one (1) of the following purposes:
        (1) To pay the principal or interest on a funding, refunding, or judgment funding obligation of the political subdivision.
        (2) To pay the principal or interest on an outstanding obligation issued by the political subdivision if notice of the sale of the obligation was published before March 9, 1937.
        (3) To pay the principal or interest upon:
            (A) an obligation issued by the political subdivision to meet an emergency which results from a flood, fire, pestilence, war, or

any other major disaster; or
            (B) a note issued under IC 36-2-6-18, IC 36-3-4-22, IC 36-4-6-20, or IC 36-5-2-11 to enable a city, town, or county to acquire necessary equipment or facilities for municipal or county government.
        (4) To pay the principal or interest upon an obligation issued in the manner provided in IC 6-1.1-20-3 (before its repeal) or IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2.
        (5) To pay a judgment rendered against the political subdivision.
        (6) To meet the requirements of the family and children's fund for child services (as defined in IC 12-19-7-1). pay the principal of, interest on, issuance costs of, or liquidation costs of an obligation governed by IC 12-19-5 or IC 12-19-7.
        (7) To meet the requirements of the county hospital care for the indigent fund.
    (c) Except as otherwise provided in IC 6-1.1-19 or IC 6-1.1-18.5, a county board of tax adjustment, a county auditor, or the state board of tax commissioners may review the portion of a tax rate described in subsection (b) only to determine if it exceeds the portion actually needed to provide for one (1) of the purposes itemized in that subsection.

SOURCE: IC 6-1.1-18.5-9.7; (02)IN1003.1.16. -->     SECTION 16. IC 6-1.1-18.5-9.7, AS AMENDED BY P.L.273-1999, SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9.7. (a) The ad valorem property tax levy limits imposed by section 3 of this chapter do not apply to ad valorem property taxes imposed under any of the following:
        (1) IC 12-16, except IC 12-16-1,
        (2) (1) IC 12-19-5.
        (3) (2) IC 12-19-7.    
        (4) (3) IC 12-20-24.
    (b) For purposes of computing the ad valorem property tax levy limits imposed under section 3 of this chapter, a county's or township's ad valorem property tax levy for a particular calendar year does not include that part of the levy imposed under the citations listed in subsection (a).
    (c) Section 8(b) of this chapter does not apply to bonded indebtedness that will be repaid through property taxes imposed under IC 12-19.
SOURCE: IC 6-1.1-19-1.5; (02)IN1003.1.17. -->     SECTION 17. IC 6-1.1-19-1.5, AS AMENDED BY P.L.291-2001, SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1.5. (a) The following definitions apply throughout this section and IC 21-3-1.7:
        (1) "Adjustment factor" means the adjustment factor determined by the state board of tax commissioners department of local government finance for a school corporation under IC 6-1.1-34.
        (2) "Adjusted target property tax rate" means:
            (A) the school corporation's target general fund property tax rate determined under IC 21-3-1.7-6.8; multiplied by
            (B) the school corporation's adjustment factor.
        (3) "Previous year property tax rate" means the school corporation's previous year general fund property tax rate after the reductions cited in IC 21-3-1.7-5(1), IC 21-3-1.7-5(2), and IC 21-3-1.7-5(3).
    (b) Except as otherwise provided in this chapter, a school corporation may not, for an ensuing calendar year, impose a general fund ad valorem property tax levy which exceeds the following:
        STEP ONE: Determine the result of:
            (A) the school corporation's adjusted target property tax rate; minus
            (B) the school corporation's previous year property tax rate.
        STEP TWO: Determine the result of:
            (A) the school corporation's target general fund property tax rate determined under IC 21-3-1.7-6.8; multiplied by
            (B) the quotient resulting from:
                (i) the absolute value of the result of the school corporation's adjustment factor minus one (1); divided by
                (ii) two (2).
        STEP THREE: If the school corporation's adjusted target property tax rate:
            (A) exceeds the school corporation's previous year property tax rate, perform the calculation under STEP FOUR and not under STEP FIVE;
            (B) is less than the school corporation's previous year property tax rate, perform the calculation under STEP FIVE and not under STEP FOUR; or
            (C) equals the school corporation's previous year property tax rate, determine the levy resulting from using the school corporation's adjusted target property tax rate and do not perform the calculation under STEP FOUR or STEP FIVE.
        The school corporation's 2002 assessed valuation shall be used for purposes of determining the levy under clause (C) in 2002 and in 2003.
        STEP FOUR: Determine the levy resulting from using the school corporation's previous year property tax rate after increasing the

rate by the lesser of:
            (A) the STEP ONE result; or
            (B) the sum of:
                (i) five cents ($0.05); plus
                (ii) if the school corporation's adjustment factor is more than one (1), the STEP TWO result.
        The school corporation's 2002 assessed valuation shall be used for purposes of determining the levy under this STEP in 2002 and in 2003.
        STEP FIVE: Determine the levy resulting from using the school corporation's previous year property tax rate after reducing the rate by the lesser of:
            (A) for calendar year 2002 or 2003, the absolute value of the STEP ONE result; or
            (B) for calendar year 2002, the sum of:
                (i) nine cents ($0.09); plus
                (ii) if the school corporation's adjustment factor is less than one (1), the STEP TWO result.
        The school corporation's 2002 assessed valuation shall be used for purposes of determining the levy under this STEP in 2002 and in 2003.
        STEP SIX: Determine the result of:
            (A) the STEP THREE (C), STEP FOUR, or STEP FIVE result, whichever applies; plus
            (B) an amount equal to the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years.
        The maximum levy is to include the portion of any excessive levy and the levy for new facilities.
    (c) For purposes of this section, "total assessed value", as adjusted under subsection (d), with respect to a school corporation means the total assessed value of all taxable property for ad valorem property taxes first due and payable during that year.
    (d) The state board of tax commissioners department of local government finance may adjust the total assessed value of a school corporation to eliminate the effects of appeals and settlements arising from a statewide general reassessment of real property.
    (e) The state board department of local government finance shall annually establish an assessment ratio and adjustment factor for each school corporation to be used upon the review and recommendation of the budget committee. The information compiled, including

background documentation, may not be used in a:
        (1) review of an assessment under IC 6-1.1-8, IC 6-1.1-13, IC 6-1.1-14, or IC 6-1.1-15;
        (2) petition for a correction of error under IC 6-1.1-15-12; or
        (3) petition for refund under IC 6-1.1-26.
    (f) All tax rates shall be computed by rounding the rate to the nearest one-hundredth of a cent ($0.0001). All tax levies shall be computed by rounding the levy to the nearest dollar amount.

SOURCE: IC 6-1.1-20.9-2; (02)IN1003.1.18. -->     SECTION 18. IC 6-1.1-20.9-2, AS AMENDED BY P.L.291-2001, SECTION 125, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) Except as otherwise provided in section 5 of this chapter, an individual who on March 1 of a particular year either owns or is buying a homestead under a contract that provides the individual is to pay the property taxes on the homestead is entitled each calendar year to a credit against the property taxes which the individual pays on the individual's homestead. However, only one (1) individual may receive a credit under this chapter for a particular homestead in a particular year.
    (b) The amount of the credit to which the individual is entitled equals the product of:
        (1) the percentage prescribed in subsection (d); multiplied by
        (2) the amount of the individual's property tax liability, as that term is defined in IC 6-1.1-21-5, which determined under IC  6-1.1-21.1-4, that is attributable to the homestead during the particular calendar year.
    (c) For purposes of determining that part of an individual's property tax liability that is attributable to the individual's homestead, all deductions from assessed valuation which the individual claims under IC 6-1.1-12 or IC 6-1.1-12.1 for property on which the individual's homestead is located must be applied first against the assessed value of the individual's homestead before those deductions are applied against any other property.
    (d) The percentage of the credit referred to in subsection (b)(1) is as follows:
    YEAR    PERCENTAGE
        OF THE CREDIT
    1996    8%
    1997    6%
    1998 through 2003 2002    10%
    2004 2003 and thereafter    4% 15%
However, the property tax replacement fund board established under IC 6-1.1-21-10, in its sole discretion, may increase the percentage of

the credit provided in the schedule for any year, if the board feels that the property tax replacement fund contains enough money for the resulting increased distribution. If the board increases the percentage of the credit provided in the schedule for any year, the percentage of the credit for the immediately following year is the percentage provided in the schedule for that particular year, unless as provided in this subsection the board in its discretion increases the percentage of the credit provided in the schedule for that particular year. However, the percentage credit allowed in a particular county for a particular year shall be increased if on January 1 of a year an ordinance adopted by a county income tax council was in effect in the county which increased the homestead credit. The amount of the increase equals the amount designated in the ordinance.
    (e) Before October 1 of each year, the assessor shall furnish to the county auditor the amount of the assessed valuation of each homestead for which a homestead credit has been properly filed under this chapter.
    (f) The county auditor shall apply the credit equally to each installment of taxes that the individual pays for the property.
    (g) Notwithstanding the provisions of this chapter, A taxpayer other than an individual is entitled to the credit provided by this chapter if:
        (1) an individual uses the residence as the individual's principal place of residence;
        (2) the residence is located in Indiana;
        (3) the individual has a beneficial interest in the taxpayer;
        (4) the taxpayer either owns the residence or is buying it under a contract, recorded in the county recorder's office, that provides that the individual is to pay the property taxes on the residence; and
        (5) the residence consists of a single-family dwelling and the real estate, not exceeding one (1) acre, that immediately surrounds that dwelling.

SOURCE: IC 6-1.1-21.1; (02)IN1003.1.19. -->     SECTION 19. IC 6-1.1-21.1 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 21.1. Distribution of Property Tax Replacement Credits
    Sec. 1. This chapter applies to the following property tax credits:
        (1) Homestead credit (IC 6-1.1-20.9).
        (2) Inventory credit (IC 6-1.1-21.3), including an additional credit provided under IC 6-1.1-21.3-6.
    Sec. 2. As used in this chapter, "allocation area" has the meaning set forth in IC 12-19-1.5-1.
    Sec. 3. As used in this chapter, "allowable credit" refers to a credit described in section 1 of this chapter.
     Sec. 4. (a) Subject to subsection (b), the property tax liability of a taxpayer for the purpose of computing an allowable credit for a particular year is:
        (1) the taxpayer's property tax liability as evidenced by the tax duplicate for the taxes payable in that year; plus
        (2) the amount by which the tax payable by the taxpayer is reduced in that year by the application of county adjusted gross income tax revenues as property tax replacement credits;
adjusted for any change in assessed valuation made as a result of a postabstract adjustment if the change is set forth on the tax statement or on a corrected tax statement stating the taxpayer's tax liability, as prepared by the county treasurer under IC 6-1.1-22-8(a).
    (b) The tax liability of a taxpayer does not include the amount of any property tax owed by the taxpayer attributable to any of the following:
        (1) The sum of any increases in property tax levies of taxing units of the county that result from appeals described in:
            (A) IC 6-1.1-18.5-13(5) and IC 6-1.1-18.5-13(6) filed after December 31, 1982; and
            (B) any other appeals described in IC 6-1.1-18.5-13 filed after December 31, 1983.
        (2) The total amount of property taxes imposed for the stated assessment year by the taxing units of the county under the authority of IC 12-1-11.5 (repealed), IC 12-2-4.5 (repealed), IC 12-19-5, or IC 12-20-24.
        (3) The total amount of property taxes to be paid during the stated assessment year that will be used to pay for interest or principal due on debt that:
            (A) is entered into after December 31, 1983;
            (B) is not debt that is issued under IC 5-1-5 to refund debt incurred before January 1, 1984; and
            (C) does not constitute debt entered into for the purpose of building, repairing, or altering school buildings for which the requirements of IC 20-5-52 were satisfied before January 1, 1984.
        (4) The amount of property taxes imposed in the county for the stated assessment year under the authority of IC 21-2-6 (repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative building fund whose property tax rate was initially established or reestablished for a stated assessment year that succeeds the 1983 stated assessment year.
        (5) The remainder of:
            (A) the total property taxes imposed in the county for the stated assessment year under authority of IC 21-2-6 (repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative building fund whose property tax rate was not initially established or reestablished for a stated assessment year that succeeds the 1983 stated assessment year; minus
            (B) the total property taxes imposed in the county for the 1984 stated assessment year under the authority of IC 21-2-6 (repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a cumulative building fund whose property tax rate was not initially established or reestablished for a stated assessment year that succeeds the 1983 stated assessment year.
        (6) The amount of property taxes imposed in the county for the stated assessment year under the following:
            (A) IC 21-2-15 for a capital projects fund.
            (B) IC 6-1.1-19-10 for a racial balance fund.
            (C) IC 20-14-13 for a library capital projects fund.
            (D) IC 20-5-17.5-3 for an art association fund.
            (E) IC 21-2-17 for a special education preschool fund.
            (F) An appeal filed under IC 6-1.1-19-5.1 for an increase in a school corporation's maximum permissible general fund levy for certain transfer tuition costs.
            (G) An appeal filed under IC 6-1.1-19-5.4 for an increase in a school corporation's maximum permissible general fund levy for transportation operating costs.
        (7) The amount of property taxes imposed by a school corporation that is attributable to the passage after 1983 of a referendum for an excessive tax levy under IC 6-1.1-19.
        (8) For each township in the county, the lesser of:
            (A) the sum of the amount determined in IC 6-1.1-18.5-19(a) STEP THREE or IC 6-1.1-18.5-19(b) STEP THREE, whichever is applicable, plus the part, if any, of the township's ad valorem property tax levy for calendar year 1989 that represents increases in that levy that resulted from an appeal described in IC 6-1.1-18.5-13(5) filed after December 31, 1982; or
            (B) the amount of property taxes imposed in the township for the stated assessment year under the authority of IC 36-8-13-4.
        (9) For each participating unit in a fire protection territory established under IC 36-8-19-1, the amount of property taxes

levied by each participating unit under IC 36-8-19-8 and IC 36-8-19-8.5 less the maximum levy limit for each of the participating units that would have otherwise been available for fire protection services under IC 6-1.1-18.5-3 and IC 6-1.1-18.5-19 for that same year.
         (10) For each county the amount of property taxes imposed in the county for the repayment of loans under IC 12-19-5-6 (repealed) that was included in the amount determined under IC 12-19-7-4(a) STEP SEVEN (repealed) for property taxes payable in 1995, or for property taxes payable in each year after 1995, the amount determined under IC 12-19-7-4(b) (repealed).
     Sec. 5. Before March 2 of each year, the department of local government finance shall certify to the department of state revenue on a form approved by the state board of accounts, the amount of allowable credits provided under this chapter that is allowed by the county for the particular calendar year. The certified amount is the county's estimated distribution for the calendar year.
     Sec. 6. (a) Each year the department of state revenue shall allocate from the state general fund an amount equal to the total amount of allowable credits that is provided under this chapter and allowed by each county for that year.
    (b) Subject to section 7 of this chapter, the department of state revenue shall distribute the county's estimated distribution for the year as follows:
    January    0 .00%
    February    0 .00%
    March    16 .70%
    April    16 .70%
    May    16 .60%
    June    0 .00%
    July    0 .00%
    August    0 .00%
    September    16 .70%
    October    16 .70%
    November    16 .60%
    December    0 .00%
    (c) Not later than December 31 of each year or as soon thereafter as possible, the department of state revenue shall make a final determination of the amount that should be distributed to each county for the calendar year. The department of state revenue shall distribute to the county treasurer or receive back from the county

treasurer any deficit or excess, as the case may be, between the sum of the distributions made for the calendar year based on the estimated distribution and the final determination of distribution. The final determination of distribution shall be based on the auditor's abstract filed with the auditor of state, adjusted for postabstract adjustments included in the December settlement sheet for the year, and any additional information as the department may require.
    (d) All distributions provided for in this section shall be made on warrants issued by the auditor of state and drawn on the treasurer of state.

     Sec. 7. (a) Except as provided in subsection (c), the department of state revenue shall not make a distribution under section 6 of this chapter of the money attributable to the county's property reassessment fund in a year if the distribution is scheduled to be made after:
        (1) August 1 of the year, and the department of local government finance certifies to the department of state revenue that the county auditor has not sent a certified statement required to be sent by that date under IC 6-1.1-17-1 to the department of local government finance; or
        (2) October 1 of the year, and the department of local government finance certifies to the department of state revenue that the:
            (A) elected township assessors in the county;
            (B) elected township assessors and the county assessor; or
            (C) county assessor;
        has not transmitted to the department of local government finance the data for all townships in the county required to be transmitted under IC 6-1.1-4-25(b).
    (b) Money not distributed under subsection (a) shall be distributed to the county when the department of local government finance certifies to the department of state revenue that the assessing officials in the county are in compliance with IC 6-1.1-17-1 and IC 6-1.1-4-25(b).
    (c) The department of local government finance shall make the certifications described in subsection (a) unless the department of local government finance determines that:
        (1) the failure of a county auditor to send a certified statement required under IC 6-1.1-17-1; or
        (2) the failure of an official to transmit data required under IC 6-1.1-4-25(b);


is justified by unusual circumstances.
     Sec. 8. (a) If the tax liability of any taxpayer for which an allowable credit is determined and allowed under this chapter is, after the determination and allowance of the credit, changed due to a postabstract adjustment, the credit shall be correspondingly adjusted by the county auditor with the assistance of the county treasurer to reflect the changed tax liability.
    (b) If a right to an additional refund results, as provided in section 8 of this chapter, the taxpayer, notwithstanding IC 6-1.1-26, has either:
        (1) ninety (90) days after the date the change is effected to process a refund claim; or
        (2) until the June 1 expiration date for refund claims as set forth in section 8 of this chapter;
whichever occurs later.

     Sec. 9. (a) Notwithstanding IC 6-1.1-26, any taxpayer who:
        (1) has properly filed for and is entitled to a credit under this chapter; and
        (2) without taking the credit, pays in full the taxes to which the credit applies;
is entitled to a refund, without interest, of an amount equal to the amount of the credit. However, if the taxpayer, at the time a refund is claimed, owes any other taxes, interest, or penalties payable to the county treasurer to whom the taxes subject to the credit were paid, the credit shall be first applied in full or partial payment of the other taxes, interest, and penalties and the balance, if any, remaining after that application is available as a refund to the taxpayer.
    (b) Any taxpayer entitled to a refund under this section shall be paid the refund from proceeds of the state general fund. However, the refund shall be paid from the state general fund only to the extent that the percentage of the allowable credit that the taxpayer was entitled to receive for a year does not exceed the percentage credit allowed by statute for that same year. Any refund that exceeds that amount shall be paid from the county's revenue distributions received under IC 6-3.5-1.1 or IC 6-3.5-6.
    (c) The state board of accounts shall establish a procedure to simplify and expedite the method for the claiming and payment of refunds under this section. The procedure is the exclusive procedure for the processing of the refunds. The procedure must require the filing of a claim for refund under this section before June 2 of the year following the year in which the taxes to which

the credit applied were paid.
    Sec. 10. A county receiving a distribution under this chapter shall allocate the amounts distributed to the county among the taxing units and the allocation areas in the county in proportion to the amounts that the property tax levy of each taxing unit and allocation area is reduced by the application of the allowable credits. For purposes of this section, a taxpayer in an allocation area shall be treated as if the taxpayer had the taxpayer's property taxes reduced even if the additional credit is denied under IC 12-19-1.5-10.
     Sec. 11. (a) Not later than October 15 of each year, each county auditor shall make a settlement with the department of state revenue as to the aggregate amount of allowable credits extended to taxpayers in the auditor's county during the first eight (8) months of that same year. Not later than December 31 of each year, each county auditor shall make a settlement with the department of state revenue along with the filing of the county auditor's December settlement as to the aggregate amount of allowable credits extended to taxpayers in the auditor's county during the last four (4) months of that same year. If the aggregate credits allowed during either period exceed the estimated distribution allocated and distributed to the county treasurer for that same period, the department of state revenue shall certify the amount of the excess to the auditor of state who shall issue a warrant to the treasurer of the state ordering the payment of the excess to the county treasurer. If the distribution exceeds the aggregate credits, the county treasurer shall repay to the treasurer of state the amount of the excess.
    (b) In making the settlement required by subsection (a), the county auditor shall recognize the fact that any loss of revenue resulting from the provision of allowable credits in excess of the percentage credit allowed in section 2(d) of this chapter must be paid from county revenues under IC 6-3.5-1.1 or IC 6-3.5-6.

     Sec. 12. Except as otherwise provided in this chapter, the state board of accounts, with the cooperation of the department of state revenue, shall prescribe the accounting forms, records, and procedures required to carry out this chapter.

SOURCE: IC 6-1.1-21.3; (02)IN1003.1.20. -->     SECTION 20. IC 6-1.1-21.3 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 21.3. Inventory Tax Replacement Credits
    Sec. 1. As used in this chapter, "allocation area" has the meaning

set forth in IC 12-19-1.5-1.
    Sec. 2. As used in this chapter, "inventory" has the meaning set forth in IC 6-1.1-3-11.
    Sec. 3. As used in this chapter, "net property tax liability on inventory" means the property taxes attributable to inventory that are due and payable as shown on the property tax statement sent to a person after all deductions and credits have been applied under any other statute.
    Sec. 4. As used in this chapter, "special fund" means an allocation fund created for an allocation area to receive the tax increment revenues (as defined in IC 12-19-1.5-7 from the allocation area.
    Sec. 5. A credit applies against a person's net property tax liability on inventory under IC 6-1.1-2 for property taxes first due and payable in 2003 and thereafter. The credit is equal to the person's net property tax liability on inventory.
    Sec. 6.    A taxpayer in an allocation area is entitled to an additional credit for property taxes that under IC 6-1.1-22-9 are due and payable in May and November of that year. One-half (1/2) of the credit shall be applied to each installment of property taxes. This credit equals the total amount of the taxpayer's property taxes levied in the allocation area attributable to inventory that would have been allocated to a special fund for the allocation area had the additional credit described in this section not been given. The additional credit reduces the amount of proceeds allocated to the allocation area and paid into a special fund.
    Sec. 7. (a) The county assessor shall determine the amount of each property owner's assessed value that is attributable to inventory in the county. Before December 1 of 2002 and each year thereafter, the county assessor shall provide the county auditor with the amount of inventory assessed value for each owner.
    (b) The county auditor shall compute the amount of property taxes in the county, including property taxes subject to the additional credit under section 6 of this chapter, that is attributable to inventory assessed value as reported by the county assessor using the property tax liability determined under IC 6-1.1-21.1-4.

SOURCE: IC 6-1.1-21.5-5; (02)IN1003.1.21. -->     SECTION 21. IC 6-1.1-21.5-5, AS AMENDED BY P.L.291-2001, SECTION 209, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The board shall determine the terms of a loan made under this chapter. However, interest may not be charged on the loan, and the loan must be repaid not later than ten (10) years after the date on which the loan was made.
    (b) The loan shall be repaid only from:
         (1) property tax revenues of the qualified taxing unit that are subject to the levy limitations imposed by IC 6-1.1-18.5 or IC 6-1.1-19; or
        (2) state tuition support distributions.

The payment of any installment of principal constitutes a first charge against such property tax revenues as collected by the qualified taxing unit during the calendar year the installment is due and payable.
    (c) The obligation to repay the loan is not a basis for the qualified taxing unit to obtain an excessive tax levy under IC 6-1.1-18.5 or IC 6-1.1-19.
    (d) Whenever the board receives a payment on a loan made under this chapter, the board shall deposit the amount paid in the counter-cyclical revenue and economic stabilization fund.
    (e) This section may not be construed to prevent the qualified taxing unit from repaying a loan made under this chapter before the date specified in subsection (a) if a taxpayer described in section 3 of this chapter resumes paying property taxes to the qualified taxing unit.
SOURCE: IC 6-1.1-21.7-7; (02)IN1003.1.22. -->     SECTION 22. IC 6-1.1-21.7-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) The state board of tax commissioners department of local government finance shall grant emergency financial relief to a taxing unit that qualifies under section 6 of this chapter not more than thirty (30) days after the appeal is filed by the taxing unit. The state board of tax commissioners department of local government finance shall compute the amount of the loan that a taxing unit is eligible to receive in a calendar year under this chapter. The amount of the loan is the lesser of the amount sought by the taxing unit or the maximum loan allowed under section 9 of this chapter. The state board of tax commissioners department of local government finance shall include the amount of the approved loan for the initial year of the loan in the order granting emergency financial relief.
    (b) Upon approval of emergency financial relief under this chapter, the state board of tax commissioners department of local government finance shall transmit sufficient information to the board to consider the application of the taxing unit. During the term of the loan, the state board of tax commissioners department of local government finance shall annually compute and transmit to the board the amount of loan proceeds for which the taxing unit is eligible in a calendar year after the initial year of the loan.
SOURCE: IC 6-1.1-21.7-8; (02)IN1003.1.23. -->     SECTION 23. IC 6-1.1-21.7-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. The board shall

make a loan from the counter-cyclical revenue and economic stabilization fund to the taxing unit in the amount specified in the order of the state board of tax commissioners department of local government finance under section 7 of this chapter not more than thirty (30) days after the state board of tax commissioners department of local government finance notifies the board under section 7 of this chapter that the appeal for emergency relief has been granted. The board and the taxing unit shall enter into a written agreement governing the terms and conditions of the loan. The agreement must contain the following provisions:
        (1) The taxing unit is obligated to pay an interest rate of five percent (5%) simple interest per year on the outstanding balance of the loan.
        (2) The taxing unit is obligated to begin repaying the principal of the loan after January 1 in the sixth year after the year in which the loan is granted.
        (3) The taxing unit shall repay the loan on the schedule agreed to between the board and the taxing unit with the last payment being made not later than December 1 in the tenth year after the year in which the loan is granted.
        (4) In addition to any other remedy available to the board, the board is authorized to offset the amount of any delinquent payment on the loan from property tax replacement credit or homestead credit distributions otherwise due the taxing unit.

SOURCE: IC 6-1.1-21.7-11; (02)IN1003.1.24. -->     SECTION 24. IC 6-1.1-21.7-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. Loan proceeds shall be distributed to a taxing unit either on the same schedule as property tax replacement homestead credits are distributed under IC 6-1.1-21 IC 6-1.1-20.9-8 or another schedule to which both the board and the taxing unit agree.
SOURCE: IC 6-1.1-21.7-13; (02)IN1003.1.25. -->     SECTION 25. IC 6-1.1-21.7-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 13. Loan proceeds received under this chapter shall be treated as property taxes receivable by the fund in which the loan proceeds are deposited for the purposes of receiving any excise tax, state distribution, or other distribution of tax revenues that is computed on the basis of the amount of the taxing unit's property tax levy, except property tax replacement and homestead credits.
SOURCE: IC 6-1.1-21.7-17; (02)IN1003.1.26. -->     SECTION 26. IC 6-1.1-21.7-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. If a taxing unit is delinquent in repaying a loan granted under this chapter, the board may certify the amount of the delinquency to the auditor of state

and the department of state revenue. Upon receiving a certification under this section, the auditor of state and the department of state revenue shall reimburse the board in the amount of the delinquency from property tax replacement credit or homestead credit distributions otherwise due the taxing unit. The auditor of state and the department of state revenue shall reduce the amount distributed for payment to the taxing unit by the amount paid to the board under this section.

SOURCE: IC 6-1.1-26-7; (02)IN1003.1.27. -->     SECTION 27. IC 6-1.1-26-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. The county auditor shall report to the department of state revenue any refund to a taxpayer made under this chapter resulting from a reduction of the amount of an assessment of business personal property (as defined in IC 6-3.1-24-2).
SOURCE: IC 6-1.1-29-9; (02)IN1003.1.28. -->     SECTION 28. IC 6-1.1-29-9, AS AMENDED BY P.L.273-1999, SECTION 57, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. (a) A county council may adopt an ordinance to abolish the county board of tax adjustment. This ordinance must be adopted by July 1 and may not be rescinded in the year it is adopted. Notwithstanding IC 6-1.1-17, IC 6-1.1-18, IC 6-1.1-19, IC 12-19-7, IC 21-2-14, IC 36-8-6, IC 36-8-7, IC 36-8-7.5, IC 36-8-11, IC 36-9-3, IC 36-9-4, and IC 36-9-13, if such an ordinance is adopted, this section governs the treatment of tax rates, tax levies, and budgets that would otherwise be reviewed by a county board of tax adjustment under IC 6-1.1-17.
    (b) The time requirements set forth in IC 6-1.1-17 govern all filings and notices.
    (c) A tax rate, tax levy, or budget that otherwise would be reviewed by the county board of tax adjustment is considered and must be treated for all purposes as if the county board of tax adjustment approved the tax rate, tax levy, or budget. This includes the notice of tax rates that is required under IC 6-1.1-17-12.
SOURCE: IC 6-1.1-33-3; (02)IN1003.1.29. -->     SECTION 29. IC 6-1.1-33-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The division of tax review shall:
        (1) conduct continuing studies in the areas in which the state board of tax commissioners operates;
        (2) make periodic field surveys and audits of tax rolls, plat books, building permits, real estate transfers, gross income tax returns, federal income tax returns, and other data which may be useful in checking property valuations or taxpayer returns;
        (3) make test checks of property valuations; and
        (4) furnish the state board of tax commissioners with information which the board requests. The division shall furnish the information in the form and at the time which the board directs.
SOURCE: IC 6-1.1-33.5-3; (02)IN1003.1.30. -->     SECTION 30. IC 6-1.1-33.5-3, AS ADDED BY P.L.198-2001, SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The division of data analysis shall:
        (1) conduct continuing studies in the areas in which the department of local government finance operates;
        (2) make periodic field surveys and audits of tax rolls, plat books, building permits, real estate transfers, gross income tax returns, federal income tax returns, and other data that may be useful in checking property valuations or taxpayer returns;
        (3) make test checks of property valuations to serve as the bases for special reassessments under this article;
        (4) conduct biennially a coefficient of dispersion study for each township and county in Indiana;
        (5) conduct quadrennially a sales assessment ratio study for each township and county in Indiana;
        (6) compute school assessment ratios under IC 6-1.1-34; and
        (7) report annually to the executive director of the legislative services agency, in a form prescribed by the legislative services agency, the information obtained or determined under this section for use by the executive director and the general assembly, including:
            (A) all information obtained by the division of data analysis from units of local government; and
            (B) all information included in:
                (i) the local government data base; and
                (ii) any other data compiled by the division of data analysis.
SOURCE: IC 6-1.1-39-5; (02)IN1003.1.31. -->     SECTION 31. IC 6-1.1-39-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) A declaratory ordinance adopted under section 2 of this chapter and confirmed under section 3 of this chapter must include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section. The allocation provision must apply to the entire economic development district. The allocation provisions must require that any property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in the economic development district be allocated and distributed as follows:
        (1) Except as otherwise provided in this section, the proceeds of the taxes attributable to the lesser of:
            (A) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
            (B) the base assessed value;
        shall be allocated to and, when collected, paid into the funds of the respective taxing units. However, if the effective date of the allocation provision of a declaratory ordinance is after March 1, 1985, and before January 1, 1986, and if an improvement to property was partially completed on March 1, 1985, the unit may provide in the declaratory ordinance that the taxes attributable to the assessed value of the property as finally determined for March 1, 1984, shall be allocated to and, when collected, paid into the funds of the respective taxing units.
        (2) Except as otherwise provided in this section, part or all of the property tax proceeds in excess of those described in subdivision (1), as specified in the declaratory ordinance, shall be allocated to the unit for the economic development district and, when collected, paid into a special fund established by the unit for that economic development district that may be used only to pay the principal of and interest on obligations owed by the unit under IC 4-4-8 for the financing of industrial development programs in, or serving, that economic development district. The amount not paid into the special fund shall be paid to the respective units in the manner prescribed by subdivision (1).
        (3) When the money in the fund is sufficient to pay all outstanding principal of and interest (to the earliest date on which the obligations can be redeemed) on obligations owed by the unit under IC 4-4-8 for the financing of industrial development programs in, or serving, that economic development district, money in the special fund in excess of that amount shall be paid to the respective taxing units in the manner prescribed by subdivision (1).
    (b) Property tax proceeds allocable to the economic development district under subsection (a)(2) must, subject to subsection (a)(3), be irrevocably pledged by the unit for payment as set forth in subsection (a)(2).
    (c) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the economic development district that is annexed by any taxing unit after the effective date of the allocation provision of the declaratory ordinance is the lesser of:
        (1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
        (2) the base assessed value.
    (d) Notwithstanding any other law, each assessor shall, upon petition of the fiscal body, reassess the taxable property situated upon or in, or added to, the economic development district effective on the next assessment date after the petition.
    (e) Notwithstanding any other law, the assessed value of all taxable property in the economic development district, for purposes of tax limitation property tax replacement (except as provided in IC 6-1.1-21-3(c), IC 6-1.1-21-4(a)(3), and IC 6-1.1-21-5(c)), and formulation of the budget, tax rate, and tax levy for each political subdivision in which the property is located is the lesser of:
        (1) the assessed value of the property as valued without regard to this section; or
        (2) the base assessed value.
    (f) The state board of accounts and state board of tax commissioners shall make the rules and prescribe the forms and procedures that they consider expedient for the implementation of this chapter. After each general reassessment under IC 6-1.1-4, the state board of tax commissioners department of local government finance shall adjust the base assessed value one (1) time to neutralize any effect of the general reassessment on the property tax proceeds allocated to the district under this section. However, the adjustment may not include the effect of property tax abatements under IC 6-1.1-12.1.
    (g) As used in this section, "property taxes" means:
        (1) taxes imposed under this article on real property; and
        (2) any part of the taxes imposed under this article on depreciable personal property that the unit has by ordinance allocated to the economic development district. However, the ordinance may not limit the allocation to taxes on depreciable personal property with any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to an economic development district property taxes imposed under IC 6-1.1 on depreciable personal property that has a useful life in excess of eight (8) years, the ordinance continues in effect until an ordinance is adopted by the unit under subdivision (2).
    (h) As used in this section, "base assessed value" means:
        (1) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (f); plus
        (2) to the extent that it is not included in subdivision (1), the net assessed value of property that is assessed as residential property

under the rules of the state board of tax commissioners, department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
Subdivision (2) applies only to economic development districts established after June 30, 1997, and to additional areas established after June 30, 1997.

SOURCE: IC 6-1.1-39-6; (02)IN1003.1.32. -->     SECTION 32. IC 6-1.1-39-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) An economic development district may be enlarged by the fiscal body by following the same procedure for the creation of an economic development district specified in this chapter. Property taxes that are attributable to the additional area and allocable to the economic development district are not eligible for the property tax replacement credit provided by IC 6-1.1-21-5. However, subject to subsection (c), each taxpayer in an additional area is entitled to an additional credit for property taxes that under IC 6-1.1-22-9 are due and payable in May and November of that year. One-half (1/2) of the credit shall be applied to each installment of property taxes. This credit equals the amount determined under the following STEPS for each taxpayer in a taxing district in a county that contains all or part of the additional area:
        STEP ONE: Determine that part of the sum of the amounts under IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2) that is attributable to the taxing district.
        STEP TWO: Divide:
            (A) that part of twenty percent (20%) of the county's total county tax levy payable that year as determined under IC 6-1.1-21-4 that is attributable to the taxing district; by
            (B) the STEP ONE sum.
        STEP THREE: Multiply:
            (A) the STEP TWO quotient; times
            (B) the total amount of the taxpayer's property taxes levied in the taxing district that would have been allocated to a special fund under section 5 of this chapter had the additional credit described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the economic development district and paid into a special fund under section 5(a) of this chapter.
    (b) If the additional credit under subsection (a) is not reduced under subsection (c) or (d), the credit for property tax replacement under IC 6-1.1-21-5 and the additional credit under subsection (a) shall be computed on an aggregate basis for all taxpayers in a taxing district

that contains all or part of an additional area. The credit for property tax replacement under IC 6-1.1-21-5 and the additional credit under subsection (a) shall be combined on the tax statements sent to each taxpayer.
    (c) The county fiscal body may, by ordinance, provide that the additional credit described in subsection (a):
        (1) does not apply in a specified additional area; or
        (2) is to be reduced by a uniform percentage for all taxpayers in a specified additional area.
    (d) Whenever the county fiscal body determines that granting the full additional credit under subsection (a) would adversely affect the interests of the holders of bonds or other contractual obligations that are payable from allocated tax proceeds in that economic development district in a way that would create a reasonable expectation that those bonds or other contractual obligations would not be paid when due, the county fiscal body must adopt an ordinance under subsection (c) to deny the additional credit or reduce the additional credit to a level that creates a reasonable expectation that the bonds or other obligations will be paid when due. An ordinance adopted under subsection (c) denies or reduces the additional credit for property taxes first due and payable in any year following the year in which the ordinance is adopted.
    (e) An ordinance adopted under subsection (c) remains in effect until the ordinance is rescinded by the body that originally adopted the ordinance. However, an ordinance may not be rescinded if the rescission would adversely affect the interests of the holders of bonds or other obligations that are payable from allocated tax proceeds in that economic development district in a way that would create a reasonable expectation that the principal of or interest on the bonds or other obligations would not be paid when due. If an ordinance is rescinded and no other ordinance is adopted, the additional credit described in subsection (a) applies to property taxes first due and payable in each year following the year in which the resolution is rescinded.

SOURCE: IC 6-1.1-44; (02)IN1003.1.33. -->     SECTION 33. IC 6-1.1-44 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 44. Miscellaneous Tax Allocation
    Sec. 1. As used in this chapter, "miscellaneous tax" means the following:
        (1) Financial institutions tax (IC 6-5.5-8-2).
        (2) Motor vehicle excise tax (IC 6-6-5-10).
        (3) Commercial vehicle excise tax (IC 6-6-5.5-20).
        (4) Aircraft excise tax (IC 6-6-6.5-21).
        (5) Auto rental excise tax (IC 6-6-9-11).
        (6) Boat excise tax (IC 6-6-11-31).    
    Sec. 2. The department of local government finance shall compute a total levy miscellaneous tax allocation.
    Sec. 3. The total levy miscellaneous tax allocation is equal to the sum of the following components:
        (1) A welfare allocation.
        (2) A human services fund allocation
        (3) A trial court allocation.
        (4) An education allocation.
    Sec. 4. For each miscellaneous tax, the welfare allocation for a county is equal to the result determined under STEP SIX of the following formula:
        STEP ONE: For 1997, 1998, and 1999, determine the result of:
            (A) the amounts appropriated by the county in the year for the county's county welfare fund and county administration fund; divided by
            (B) the amounts appropriated by all the taxing units in the county for the year.
        STEP TWO: Determine the sum of the results determined under STEP ONE.
        STEP THREE: Divide the STEP TWO result by three (3).
        STEP FOUR: Determine the amount of the miscellaneous tax that would otherwise be distributed to all taxing units in the county under the law establishing the miscellaneous tax without regard to this section.
        STEP FIVE: Determine the result of:
            (A) the STEP FOUR amount; multiplied by
            (B) the STEP THREE result.
        STEP SIX: Determine the greater of:
            (A) zero (0); or
            (B) the STEP FIVE amount.
    Sec. 5. For each miscellaneous tax, the human services allocation for a county is equal to the result determined under STEP SIX of the following formula:
        STEP ONE: For 2000, 2001, and 2002, determine the result of:
            (A) the amounts appropriated by the county in the year for:
                (i) the county's family and children's fund (IC 12-19-7-3 (repealed)) after the deduction of any amounts appropriated from the fund for the repayment of loans and bonds issued for the fund;
                (ii) the county contributions to the medical assistance to

wards program under IC 12-13-8 (repealed);
                (iii) the county contribution to the children with special health care needs program under IC 16-35-3 (repealed); and
                (iv) the county contribution to the hospital care for the indigent program under IC 12-16-14 (repealed);
            divided by
            (B) the amounts appropriated by all the taxing units in the county for the year.
        STEP TWO: Determine the sum of the results determined under STEP ONE.
        STEP THREE: Divide the STEP TWO result by three (3).
        STEP FOUR: Determine the amount of the miscellaneous tax that would otherwise be distributed to all taxing units in the county under the law establishing the miscellaneous tax without regard to this section.
        STEP FIVE: Determine the result of:
            (A) the STEP FOUR amount; multiplied by
            (B) the STEP THREE result.
        STEP SIX: Determine the greater of:
            (A) zero (0); or
            (B) the STEP FIVE amount.
    Sec. 6. For each miscellaneous tax, the trial court allocation for a county is equal to the result determined under STEP SIX of the following formula:
        STEP ONE: For 2000, 2001, and 2002, determine the result of:
            (A) the amounts appropriated by the county in the year for the personnel and other operating expense of the circuit, superior, probate, and county courts in the county that after 2002 will be paid by the state under IC 33-1-18-6; divided by
            (B) the amounts appropriated by all the taxing units in the county for the year.
        STEP TWO: Determine the sum of the results determined under STEP ONE.
        STEP THREE: Divide the STEP TWO result by three (3).
        STEP FOUR: Determine the amount of the miscellaneous tax that would otherwise be distributed to all taxing units in the county under the law establishing the miscellaneous tax without regard to this section.
        STEP FIVE: Determine the result of:
            (A) the STEP FOUR amount; multiplied by
            (B) the STEP THREE result.


        STEP SIX: Determine the greater of:
            (A) zero (0); or
            (B) the STEP FIVE amount.
    Sec. 7. For each miscellaneous tax, the education allocation for a county is equal to the result determined under STEP SIX of the following formula:
        STEP ONE: For 2000, 2001, and 2003, determine the result of:
            (A) for fifty percent (50%) of the part of the tuition support levy (as defined in IC 21-3-1.7-5) levied in the county for each school corporation that is at least partially located in the county; divided by
            (B) the amounts appropriated by all the taxing units in the county for the year.
        STEP TWO: Determine the sum of the results determined under STEP ONE.
        STEP THREE: Divide the STEP TWO result by three (3).
        STEP FOUR: Determine the amount of the miscellaneous tax that would otherwise be distributed to all taxing units in the county under the law establishing the miscellaneous tax without regard to this section.
        STEP FIVE: Determine the result of:
            (A) the STEP FOUR amount; multiplied by
            (B) the STEP THREE result.
        STEP SIX: Determine the greater of:
            (A) zero (0); or
            (B) the STEP FIVE amount.
    Sec. 8. The total levy miscellaneous tax allocation shall be used, as provided in each law establishing a miscellaneous tax, to determine the amount of tax proceeds to be distributed to the state and to each county.
    Sec. 9. The department of local government finance shall annually certify the amount of:
        (1) each county's
total levy miscellaneous tax allocation; and
        (2) the amount of each component of each county's
total levy miscellaneous tax allocation to the county auditor.
SOURCE: IC 6-2.2; (02)IN1003.1.34. -->     SECTION 34. IC 6-2.2 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     ARTICLE 2.2. BUSINESS FRANCHISE TAX
     Chapter 1. Application
    Sec. 1. Except as provided in IC 6-2.2-3 (exempt entities), this article applies to all business entities doing business in Indiana in

a taxable year.
    Sec. 2. The entities to which this article applies include the following:
        (1) Corporations.
        (2) S corporations (as defined in Section 1361 of the Internal Revenue Code).
        (3) Partnerships.
        (4) Limited partnerships.
        (5) Limited liability partnerships.
        (6) Limited liability companies.
        (7) Business trusts (as defined in IC 23-5-1-2).
    Sec. 3. For purposes of this article, each business entity is treated as a separate entity regardless of the extent to which the business entity is owned or controlled by another business entity or whether the business entity is taxed for federal income tax purposes.
    Sec. 4. A business entity shall not be treated as doing business in Indiana solely because it has an ownership interest in an entity described in section 2 of this chapter that is doing business in Indiana.

    Chapter 2. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. "Adjusted net worth" means the net worth of a business entity remaining after subtracting any exemptions allowed under IC 6-2.2-5 and any deductions allowed under IC 6-2.2-6.
    Sec. 3. "Business entity" means any legal entity, regardless of form or place of formation, that engages in doing business in Indiana in a taxable year.
    Sec. 4. "Department" refers to the department of state revenue.
    Sec. 5. "Doing business" means owning, renting, or operating business or income producing property or engaging in other business or income producing activity.
    Sec. 6. "Exempt entity" refers to an entity described in IC 6-2.2-3.
    Sec. 7. "Net worth" refers to the net worth of a business entity as determined under IC 6-2.2-5.
    Sec. 8. "Taxable net worth" means the adjusted net worth of a business entity that is attributed to Indiana under IC 6-2.2-7.
    Sec. 9. "Taxable year" means the taxable year of a taxpayer determined under IC 6-2.2-4.
    Sec. 10. "Taxpayer" means a business entity that is not an exempt entity.


    Chapter 3. Exempt Entities
    Sec. 1. An individual is exempt from this article.
    Sec. 2. The estate of a deceased individual is exempt from this article.
    Sec. 3. The following governmental or quasi-governmental entities are exempt from this article:
        (1) The United States government.
        (2) The state of Indiana, another state, or an Indian tribe (as defined in IC 34-6-2-66.7).
        (3) A political subdivision.
        (4) A body corporate and politic that is an instrumentality of a governmental entity described in subdivisions (1) through (3), including a state educational institution (as defined in IC 20-12-0.5-1).
        (5) A business entity that is wholly owned by a governmental entity described in subdivisions (1) through (3), including a municipally owned utility (as defined in IC 8-1-2-1).
    Sec. 4. An organization that is exempt for federal income tax purposes under Section 501(a) of the Internal Revenue Code is exempt from this article, regardless of whether the organization has unrelated business income that is taxable for federal income tax purposes.
    Sec. 5. A company (as defined in IC 27-1-2-3) is exempt from this article.
    Sec. 6. The following are exempt from this article:
        (1) A holding company (as defined in IC 6-5.5-1-17).
        (2) A regulated financial corporation (as defined in IC 6-5.5-1-17).
    Sec. 7. A trust (as described in IC 30-4-1-1) other than a business trust (as defined in IC 23-5-1-2) is exempt from this article.
    Sec. 8. The following political organizations are exempt from this article:
        (1) A bona fide political party (as defined in IC 3-5-2-5.5).
        (2) A candidate's committee (as defined in IC 3-5-2-7).
        (3) A central committee (as defined in IC 3-5-2-8).
        (4) A regular party committee (as defined in IC 3-5-2-42).
        (5) A political action committee (as defined in IC 3-5-2-37).
        (6) A legislative caucus committee (as defined in IC 3-5-2-27.3).
    Chapter 4. Accounting Practices

     Sec. 1. A taxpayer's taxable year under this article is the year that a taxpayer uses for its annual financial statements. If a taxpayer does not prepare annual financial statements, the

taxpayer's taxable year under this article is a calendar year.
     Sec. 2. The taxable net worth of a taxpayer for a taxable year is the taxable net worth of the taxpayer on the last day immediately preceding the beginning of the taxpayer's taxable year.
     Sec. 3. Subject to this article, a taxpayer shall compute the taxpayer's adjusted net worth and any credits allowed against the business franchise tax using generally accepted accounting principles applicable to the United States. If generally accepted accounting principles allow more than one (1) method of accounting for the net worth of a taxpayer, the taxpayer shall use for purposes of this article the same method of accounting that the taxpayer uses to prepare the taxpayer's annual financial statements. If the taxpayer does not prepare annual financial statements in accordance with generally accepted accounting principles, the taxpayer shall use:
        (1) the same method of accounting that the taxpayer uses for filing a return for federal income tax purposes; or
        (2) if the taxpayer does not file a return for federal income tax purposes, a method of accounting consistent with the requirements of Section 446 of the Internal Revenue Code.

    Chapter 5. Net Worth
    Sec. 1. The net worth of a taxpayer is the greater of the following:
        (1) The difference between the taxpayer's total assets and the taxpayer's total liabilities.
        (2) Zero (0).
    Sec. 2. Notwithstanding any other law, none of the net worth of a taxpayer is exempt from taxation under this article.
    Chapter 6. Deductions
    Sec. 1. Notwithstanding any other law, the only deductions allowable against the net worth of a taxpayer are the deductions allowed by this chapter.
    Sec. 2. A taxpayer may deduct the book value of the taxpayer's ownership interest that the taxpayer has in another business entity from the net worth of the taxpayer if:
        (1) the taxpayer's ownership interest constitutes at least twenty percent (20%) of the total ownership of the business entity; and
        (2) the value of the taxpayer's ownership interest in the other business entity would otherwise be included in the net worth of the taxpayer.
A deduction shall be allowed under this section only to the extent that the deduction does not result in a business franchise tax for the

taxpayer in a taxable year that is less than two thousand five hundred dollars ($2,500).
    Chapter 7. Apportionment of Net Worth
    Sec. 1. The taxable net worth of a taxpayer is equal to the adjusted net worth of the taxpayer multiplied by an apportionment factor.
    Sec 2. The apportionment factor for a taxpayer that is doing business only in Indiana is one (1).
    Sec. 3. (a) The apportionment factor for a taxpayer that is doing business both in Indiana and outside Indiana is a fraction.
    (b) Subject to this chapter, the numerator of the fraction is the sum of the property factor, payroll factor, and receipts factor determined under this chapter.
    (c) Subject to this chapter, the denominator of the fraction is three (3). However, if the taxpayer lacks one (1) of the factors applicable to the numerator, the denominator is two (2), and if the taxpayer lacks more than one (1) of the factors applicable to the numerator, the denominator is one (1).
    (d) Nonbusiness receipts or property may not be excluded from the numerator or denominator computed under this chapter.

     Sec. 4. (a) The property factor is a fraction.
    (b) The numerator of the property factor fraction is the average value of the taxpayer's real and tangible personal property owned or rented and used in Indiana during the immediately preceding taxable year.
    (c) The denominator of the property factor fraction is the average value of all the taxpayer's real and tangible personal property owned or rented and used during the immediately preceding taxable year.
    (d) Property owned by the taxpayer is valued at its original cost.
    (e) Property rented by the taxpayer is valued at eight (8) times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
    (f) The average value of property shall be determined by averaging the values at the beginning and ending of the taxpayer's immediately preceding taxable year, but the department may require the averaging of monthly values during the immediately preceding taxable year if reasonably required to reflect properly the average value of the taxpayer's property.
    Sec. 5. (a) The payroll factor is a fraction.
    (b) The numerator of the payroll fraction is the total amount

paid in Indiana during the immediately preceding taxable year by the taxpayer for compensation.
    (c) The denominator of the payroll fraction is the total compensation paid everywhere during the immediately preceding taxable year.
    (d) Compensation is paid in Indiana if:
        (1) the individual's service is performed entirely in Indiana;
        (2) the individual's service is performed both in and outside Indiana, but the service performed outside Indiana is incidental to the individual's service in Indiana; or
        (3) some of the service is performed in Indiana and:
            (A) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in Indiana; or
            (B) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual is a resident of Indiana.
    Sec. 6. (a) The receipts factor is a fraction.
    (b) The numerator of the receipts factor fraction is the total receipts of the taxpayer in Indiana during the immediately preceding taxable year.
    (c) The denominator of the receipts factor fraction is the total receipts of the taxpayer everywhere during the immediately preceding taxable year.
    Sec. 7. (a) The receipts factor includes receipts from intangible property and receipts from the sale or exchange of intangible property.
    (b) Receipts from intangible personal property are derived from sources in Indiana if the receipts from the intangible personal property are attributable to Indiana under section 8 of this chapter.
    (c) Sales of tangible personal property are in Indiana if:
        (1) the property is delivered or shipped to a purchaser, other than the United States government, in Indiana, regardless of the f.o.b. point or other conditions of the sale; or
        (2) the property is shipped from an office, a store, a warehouse, a factory, or other place of storage in Indiana and:
            (A) the purchaser is the United States government; or
            (B) the taxpayer is not taxable, as determined under section 10 of this chapter, in the state of the purchaser.
    (d) Gross receipts derived from commercial printing that results

in printed materials, excluding the business of photocopying, shall be treated as receipts of tangible personal property for purposes of this chapter.
    (e) Receipts, other than receipts from intangible property covered by subsection (b) and receipts of tangible personal property, are in Indiana if:
        (1) the activity producing the receipts is performed in Indiana; or
        (2) the activity producing the receipts is performed both in and outside Indiana and a greater proportion of the activity producing the receipts is performed in Indiana than in any other state, based on costs of performance.
    Sec. 8. (a) Interest and other receipts from assets in the nature of loans or installment receipts contracts that are primarily secured by or deal with real or tangible personal property are attributable to Indiana if the security or sale property is located in Indiana.
    (b) Interest and other receipts from consumer loans not secured by real or tangible personal property are attributable to Indiana if the loan is made to a resident of Indiana, whether at a place of business, by a traveling loan officer, by mail, by telephone, or by other electronic means.
    (c) Interest and other receipts from commercial loans and installment obligations not secured by real or tangible personal property are attributable to Indiana if the proceeds of the loan are to be applied in Indiana. If it cannot be determined where the funds are to be applied, the receipts are attributable to the state in which the business applied for the loan. As used in this section, "applied for" means initial inquiry (including customer assistance in preparing the loan application) or submission of a completed loan application, whichever occurs first.
    (d) Interest, merchant discount, and other receipts including service charges from financial institution credit card and travel and entertainment credit card receivables and credit card holders' fees are attributable to the state to which the card charges and fees are regularly billed.
    (e) Receipts from the performance of fiduciary and other services are attributable to the state in which the benefits of the services are consumed. If the benefits are consumed in more than one (1) state, the receipts from those benefits are attributable to Indiana on a pro rata basis according to the part of the benefits consumed in Indiana.
    (f) Receipts from the issuance of traveler's checks, money orders,

or United States savings bonds are attributable to the state in which the traveler's checks, money orders, or bonds are purchased.
    (g) Receipts in the form of dividends from investments are attributable to Indiana if the taxpayer's commercial domicile is in Indiana.
    Sec. 9. (a) Receipts from rents and royalties from real or tangible personal property, sale of capital assets, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income (as defined in IC 6-3-1-21), are attributed as provided in this section.
    (b) Receipts from net rents and royalties from real property located in Indiana are attributable to Indiana.
    (c) Receipts from net rents and royalties from tangible personal property are attributed to Indiana:
        (1) if and to the extent that the property is used in Indiana; or
        (2) in their entirety if the taxpayer's commercial domicile is in Indiana and the taxpayer is not organized under the laws of or taxable in the state in which the property is used.
    (d) The extent of use of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction. The numerator of the fraction is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year. The denominator of the fraction is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or not ascertainable by the taxpayer, tangible personal property is used in the state in which the property was located at the time the rental or royalty payer obtained possession.
    (e) Receipts from the sales of real property located in Indiana are attributable to Indiana.
    (f) Receipts from sales of tangible personal property are attributable to Indiana if:
        (1) the property had a situs in Indiana at the time of the sale; or
        (2) the taxpayer's commercial domicile is in Indiana and the taxpayer is not taxable in the state in which the property had a situs as determined under section 10 of this chapter.
    (g) Receipts from intangible personal property are attributable to Indiana if the taxpayer's commercial domicile is in Indiana.
    (h) Receipts from interest and dividends are attributable to Indiana if the taxpayer's commercial domicile is in Indiana.


    (i) Patent and copyright royalties are attributable to Indiana:
        (1) if and to the extent that the patent or copyright is used by the taxpayer in Indiana; or
        (2) if and to the extent that the patent or copyright is used by the taxpayer in a state in which the taxpayer is not taxable as determined under this section and the taxpayer's commercial domicile is in Indiana.
A patent is used in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of use, the patent is used in the state in which the taxpayer's commercial domicile is located. A copyright is used in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of use, the copyright is used in the state in which the taxpayer's commercial domicile is located.
    Sec. 10. For purposes of apportionment of net worth under this article, a taxpayer is taxable in another state if:
        (1) in that state the taxpayer is subject to a franchise tax measured by net worth, a franchise tax for the privilege of doing business, or a corporate stock tax; or
        (2) that state has jurisdiction to subject the taxpayer to a net worth tax regardless of whether, in fact, the state does or does not.
    Sec. 11. (a) The property factor in the numerator of the apportionment factor for a transportation company is computed as follows:
        (1) Fixed properties such as buildings and land used in business, shop, and terminal equipment and trucks or cars used locally or any other tangible property connected with the transportation business is assigned to the state in which the properties are located.
        (2) The value of all movable equipment used in interstate transportation is assigned to Indiana on the basis of total miles traveled in Indiana as compared with total miles traveled everywhere.
        (3) Fixed and movable property is combined to arrive at the total property factor, Indiana property over property everywhere.
Property owned by the transportation company is valued at original cost. Property rented is valued at eight (8) times the annual rental rate less any annual subrental.
    (b) The payroll factor in the numerator of the apportionment factor for a transportation company is computed as follows:
        (1) Wages and salaries of employees assigned to fixed locations in Indiana are included in the payroll factor of Indiana.
        (2) Wages of personnel operating interstate transportation equipment are assigned to Indiana on the basis of total miles traveled in Indiana as compared to total miles traveled everywhere.
        (3) The payroll of permanent and transient personnel is combined to arrive at the total payroll factor, Indiana payroll over payroll everywhere.
    (c) The receipts factor in the numerator of the apportionment factor for a transportation company is computed as follows:
        (1) The total revenue dollars from transportation (both intrastate and interstate) are assigned to the states traversed on the basis of class or category mileage in each state in which or through which the freight or passengers move.
        (2) Pipelines may substitute revenue miles with barrel miles, cubic foot miles, or other appropriate measures of product movement.
        (3) In order to determine the percentage of revenue from transportation services in Indiana, the fraction of revenue miles in Indiana over revenue miles everywhere must be applied to total revenue from transportation.
    Chapter 8. Business Franchise Tax

     Sec. 1. An excise tax is imposed on a taxpayer in each taxable year in which the taxpayer is doing business in Indiana.
    Sec. 2. The tax imposed under section 1 of this chapter is for the privilege of doing business in Indiana in a taxable year regardless of the number of days in a taxable year that the taxpayer is actually doing business in Indiana.
    Sec. 3. (a) This section applies if the taxpayer does not take a deduction under IC 6-2.2-6-2.
    (b) The tax imposed under section 1 of this chapter is equal to the result determined under STEP THREE of the following formula:
        STEP ONE: Multiply the taxpayer's taxable net worth by three thousandths (0.003).
        STEP TWO: Determine the greater of the following:
            (A) Fifty dollars ($50).
            (B) The STEP ONE result.
        STEP THREE: Determine the lesser of the following:
            (A) One hundred thousand dollars ($100,000).
            (B) The STEP TWO result.
    Sec. 4. (a) This section applies if the taxpayer takes a deduction under IC 6-2.2-6-2.
    (b) The tax imposed by section 1 of this chapter is equal to the result determined under the following formula:
        STEP ONE: Multiply the taxpayer's taxable net worth, without any deduction under IC 6-2.2-6-2, by twenty-five ten thousandths (0.0025).
        STEP TWO: If the STEP ONE result is not greater than fifty dollars ($50), the tax imposed under section 1 of this chapter is fifty dollars ($50).
        STEP THREE: If the STEP ONE result is greater than fifty dollars ($50) and not greater than two thousand five hundred dollars ($2,500), the tax imposed under section 1 of this chapter is the STEP ONE result.
        STEP FOUR: If the STEP ONE result is greater than two thousand five hundred dollars ($2,500), multiply the taxpayer's net worth, after subtracting the deduction under IC 6-2.2-6-2, by twenty-five ten thousandths (0.0025).
        STEP FIVE: If the STEP FOUR result is not greater than two thousand five hundred dollars ($2,500), the tax imposed under section 1 of this chapter is two thousand five hundred dollars ($2,500).
        STEP SIX: If the STEP FOUR result is greater than two thousand five hundred dollars ($2,500), the tax imposed under section 1 of this chapter is equal to the lesser of the following:
            (A) One hundred thousand dollars ($100,000).
            (B) The STEP FOUR result.

    Chapter 9. Credits
    Sec. 1. Notwithstanding any other law, a taxpayer is not eligible for any credit against the tax imposed under this article.
    Chapter 10. Payment of Taxes; Final Returns
    Sec. 1. A taxpayer shall file the return prescribed by the department for each taxable year that the taxpayer is doing business in Indiana regardless of whether the taxpayer has any tax due.
    Sec. 2. The return must contain the information that the department may require by rule, including any detailed information that may be necessary to determine the taxpayer's tax

liability under this article.
    Sec. 3. Subject to IC 6-8.1-6-1, a return for a taxable year must be filed before the sixteenth day of the fourth month after the beginning of the taxpayer's taxable year.
    Sec. 4. Subject to IC 6-8.1-6-1, a taxpayer shall pay the tax imposed under this article for a taxable year before the sixteenth day of the fourth month after the beginning of the taxpayer's taxable year.
    Chapter 11. Administration
    Sec. 1. Money collected under this article shall be deposited in the state general fund.
    Sec. 2. The department may prescribe forms and adopt rules under IC 4-22-2 to carry out this article and collect the tax imposed by this article.
    Sec. 3. The department may require a taxpayer to provide information concerning any licenses and registrations that the taxpayer has in Indiana.
    Sec. 4. The department may require a taxpayer to notify the department concerning any change in its method of accounting or taxable year.
    Sec. 5. The tax imposed under this article is a listed tax.
    Chapter 12. Penalties
    Sec. 1. The penalties in IC 6-8.1 apply to this article.
    Sec. 2. If a taxpayer:
        (1) fails to:
            (A) file a notice, an information report, or a return; or
            (B) pay the amount of the tax due;
        as required under this article and IC 6-8.1; and
        (2) within ninety (90) days after receiving written notice of a failure described in subdivision (1), fails to comply with this article and pay any penalty imposed under IC 6-8.1 for failure to comply with this article;
the department may suspend the taxpayer's privilege of doing business in Indiana for the remainder of the taxable year in which the failure occurred and for any subsequent taxable year. Notice of the suspension must be given under IC 4-21.5-3-4.
    Sec. 3. A taxpayer may obtain administrative review of a suspension under section 2 of this chapter under IC 4-21.5-3-7 and judicial review of a final determination of the department under IC 4-21.5-5. Judicial review shall be initiated by filing a petition in the tax court. The tax court has exclusive jurisdiction over the review.


    Sec. 4. Except during any time that an order suspending a taxpayer's privilege of doing business in Indiana is stayed under IC 4-21.5:
        (1) a taxpayer whose privilege of doing business in Indiana has been suspended under this chapter is ineligible to enforce any right or power otherwise accruing to the taxpayer after the taxpayer receives written notice from the department that the taxpayer's privilege of doing business in Indiana has been suspended; and
        (2) any contract entered into by the taxpayer after the taxpayer has received written notice that the taxpayer's privilege of doing business in Indiana has been suspended is voidable by any other party to the contract.
    Sec. 5. If:
        (1) the department suspends a taxpayer's privilege of doing business or a stay of an order suspending the taxpayer's privilege of doing business in Indiana is terminated; and
        (2) the department knows that the taxpayer is required by any law to obtain a license or register with any state agency or political subdivision to engage in doing business;
the department shall notify the state agency or political subdivision that the taxpayer's privilege of doing business in Indiana has been suspended. Upon receipt of the notification, the state agency or political subdivision shall suspend the license or the rights accruing from registration issued by the state agency or political subdivision.
    Sec. 6. An order suspending the privilege of doing business in Indiana may be rescinded if the taxpayer:
        (1) complies with this article; and
        (2) pays the penalties imposed under IC 6-8.1 for violation of this article.
    Sec. 7. If an order suspending a taxpayer's privilege of doing business in Indiana is rescinded or stayed, the department shall notify each state agency and political subdivision described in section 5 of this chapter of the action. Upon receipt of the notice, each state agency and political subdivision shall reinstate any license or rights accruing from registration if the taxpayer otherwise qualifies for the license or registration and the taxpayer pays any fees imposed to reinstate the license or registration.

SOURCE: IC 6-2.5-1-10; (02)IN1003.1.35. -->     SECTION 35. IC 6-2.5-1-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 10. "Commercial printing" means a process or

activity, or both, that is related to the production of printed materials for others, including the following:
        (1) Receiving, processing, moving, storing, and transmitting, either physically or electronically, copy elements and images to be reproduced.
        (2) Plate making or cylinder making.
        (3) Applying ink by one (1) or more processes, such as printing by letter press, lithography, gravure, screen, or digital means.
        (4) Casemaking and binding.
        (5) Assembling, packaging, and distributing printed materials.
The term does not include the business of photocopying.

SOURCE: IC 6-2.5-2-2; (02)IN1003.1.36. -->     SECTION 36. IC 6-2.5-2-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. (a) The state gross retail tax is measured by the gross retail income received by a retail merchant in a retail unitary transaction and is imposed at the following rates:
    STATE     GROSS RETAIL INCOME
    GROSS     FROM THE
    RETAIL     RETAIL UNITARY
    TAX     TRANSACTION
    $    0         less than    $     .10
    $    .01     at least $ .10,    but less than    $     .30
    $    .02     at least $ .30,    but less than    $     .50
    $    .03     at least $ .50,    but less than    $     .70
    $    .04     at least $ .70,    but less than    $     .90
    $    .05     at least $ .90,    but less than    $    1 .10
     $    0         less than    $    0 .09
    $    0.01     at least $0.09    but less than    $    0 .25
    $    0.02     at least $ 0.25    but less than    $    0 .42
    $    0.03     at least $ 0.42    but less than    $    0 .59
    $    0.04     at least $ 0.59    but less than    $    0 .75
    $    0.05     at least $ 0.75    but less than    $    0 .92
    $    0.06     at least $ 0.92    but less than    $1.09

On a retail unitary transaction in which the gross retail income received by the retail merchant is one dollar and ten nine cents ($1.10) ($1.09) or more, the state gross retail tax is five six percent (5%) (6%) of that gross retail income.
    (b) If the tax, computed under subsection (a), results in a fraction of one-half cent ($.005) ($0.005) or more, the amount of the tax shall be rounded to the next additional cent.
SOURCE: IC 6-2.5-5-3; (02)IN1003.1.37. -->     SECTION 37. IC 6-2.5-5-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. (a) For purposes of

this section:
        (1) the retreading of tires shall be treated as the processing of tangible personal property; and
        (2) commercial printing as described in IC 6-2.1-2-4 shall be treated as the production and manufacture of tangible personal property.
    (b) Transactions involving manufacturing machinery, tools, and equipment are exempt from the state gross retail tax if the person acquiring that property acquires it for direct use in the direct production, manufacture, fabrication, assembly, extraction, mining, processing, refining, or finishing of other tangible personal property.

SOURCE: IC 6-2.5-5-5.1; (02)IN1003.1.38. -->     SECTION 38. IC 6-2.5-5-5.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 5.1. (a) As used in this section, "tangible personal property" includes electrical energy, natural or artificial gas, water, steam, and steam heat.
    (b) Transactions involving tangible personal property are exempt from the state gross retail tax if the person acquiring the property acquires it for direct consumption as a material to be consumed in the direct production of other tangible personal property in the person's business of manufacturing, processing, refining, repairing, mining, agriculture, horticulture, floriculture, or arboriculture. This exemption includes transactions involving acquisitions of tangible personal property used in commercial printing. as described in IC 6-2.1-2-4.
SOURCE: IC 6-2.5-5-6; (02)IN1003.1.39. -->     SECTION 39. IC 6-2.5-5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 6. Transactions involving tangible personal property are exempt from the state gross retail tax if the person acquiring the property acquires it for incorporation as a material part of other tangible personal property which the purchaser manufactures, assembles, refines, or processes for sale in his business. This exemption includes transactions involving acquisitions of tangible personal property used in commercial printing. as described in IC 6-2.1-2-4.
SOURCE: IC 6-2.5-5-21; (02)IN1003.1.40. -->     SECTION 40. IC 6-2.5-5-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 21. (a) For purposes of this section, "private benefit or gain" does not include reasonable compensation paid to an employee for work or services actually performed.
    (b)
Sales of food are exempt from the state gross retail tax, if:
        (1) the seller is an organization described in IC 6-2.1-3-19, IC 6-2.1-3-20, IC 6-2.1-3-21, or IC 6-2.1-3-22; meets the filing requirements under subsection (d) and is any of the following:
            (A)
A fraternity, a sorority, or a student cooperative housing

organization that is connected with and under the supervision of a college, a university, or any other educational institution if no part of its income is used for the private benefit or gain of any member, trustee, shareholder, employee, or associate.
             (B) Any:
                (i) institution;
                (ii) trust;
                (iii) group;
                (iv) united fund;
                (v) affiliated agency of a united fund;
                (vi) nonprofit corporation;
                (vii) cemetery association; or
                (viii) organization;
            that is organized and operated exclusively for religious, charitable, scientific, literary, educational, or civic purposes if no part of its income is used for the private benefit or gain of any member, trustee, shareholder, employee, or associate.
            (C) A group, an organization, or a nonprofit corporation that is organized and operated for fraternal or social purposes, or as a business league or association, and not for the private benefit or gain of any member, trustee, shareholder, employee, or associate.
            (D) A:
                (i) hospital licensed by the state department of health;
                (ii) shared hospital services organization exempt from federal income taxation by Section 501(c)(3) or 501(e) of the Internal Revenue Code;
                (iii) labor union;
                (iv) church;
                (v) monastery;
                (vi) convent;
                (vii) school that is a part of the Indiana public school system;
                (viii) parochial school regularly maintained by a recognized religious denomination; or
                (ix) trust created for the purpose of paying pensions to members of a particular profession or business who created the trust for the purpose of paying pensions to each other;
            if the taxpayer is not organized or operated for private profit or gain;


        (2) the purchaser is a person confined to his home because of age, sickness, or infirmity;
        (3) the seller delivers the food to the purchaser; and
        (4) the delivery is prescribed as medically necessary by a physician licensed to practice medicine in Indiana.
    (b) (c) Sales of food are exempt from the state gross retail tax, if the seller is an organization described in IC 6-2.1-3-19, IC 6-2.1-3-20, IC 6-2.1-3-21, or IC 6-2.1-3-22 subsection (b)(1), and the purchaser is a patient in a hospital operated by the seller.
     (d) To obtain the exemption provided by this section, a taxpayer must file an application for exemption with the department:
        (1) before January 1, 2003, under IC 6-2.1-3-19 (repealed); or
        (2) not later than one hundred twenty (120) days after the taxpayer's formation.
In addition, the taxpayer must file an annual report with the department on or before the fifteenth day of the fifth month following the close of each taxable year. If a taxpayer fails to file the report, the department shall notify the taxpayer of the failure. If within sixty (60) days after receiving such notice the taxpayer does not provide the report, the taxpayer's exemption shall be canceled. However, the department may reinstate the taxpayer's exemption if the taxpayer shows by petition that the failure was due to excusable neglect.

SOURCE: IC 6-2.5-5-22; (02)IN1003.1.41. -->     SECTION 41. IC 6-2.5-5-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 22. (a) Sales of school meals are exempt from the state gross retail tax, if:
        (1) the seller is a school containing students in any grade, one (1) through twelve (12);
        (2) the purchaser is one (1) of those students or a school employee; and
        (3) the school furnishes the food on its premises.
    (b) Sales of food by not-for-profit colleges or universities are exempt from the state gross retail tax, if the purchaser is a student at the college or university.
    (c) Sales of meals after December 31, 1976, by a fraternity, sorority, or student cooperative housing organization described in IC 6-2.1-3-19 section 21(b)(1)(A) of this chapter are exempt from the state gross retail tax, if the purchaser:
        (1) is a member of the fraternity, sorority, or student cooperative housing organization; and
        (2) is enrolled in the college, university, or educational institution with which the fraternity, sorority, or student cooperative housing

organization is connected and by which it is supervised.

SOURCE: IC 6-2.5-5-24; (02)IN1003.1.42. -->     SECTION 42. IC 6-2.5-5-24 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 24. (a) Transactions are exempt from the state gross retail tax to the extent that the gross retail income from those transactions is derived from gross receipts that are: exempt from the gross income tax under IC 6-2.1-3-2, IC 6-2.1-3-3.5, IC 6-2.1-3-5, IC 6-2.1-3-6, IC 6-2.1-3-7, or IC 6-2.1-3-13.
         (1) derived from sales to the United States government, to the extent the state is prohibited by the Constitution of the United States from taxing that income;
        (2) derived from commercial printing that results in printed materials, excluding the business of photocopying, that are shipped, mailed, or delivered outside Indiana;
        (3) United States or Indiana taxes received or collected as a collecting agent explicitly designated as a collecting agent for a tax by statute for the state or the United States;
        (4) collections by a retail merchant of a retailer's excise tax imposed by the United States exempt tax if:
            (A) the tax is imposed solely on the sale at retail of tangible personal property;
            (B) the tax is remitted to the appropriate taxing authority; and
            (C) the retail merchant collects the tax separately as an addition to the price of the property sold;
        (5)
collections of a manufacturer's excise tax imposed by the United States on motor vehicles, motor vehicle bodies and chassis, parts and accessories for motor vehicles, tires, tubes for tires, or tread rubber and laminated tires, if the excise tax is separately stated by the collecting taxpayer as either an addition to or an inclusion in the price of the property sold; or
        (6) amounts represented by an encumbrance of any kind on tangible personal property received by a retail merchant in reciprocal exchange for tangible personal property of like kind.

    (b) Transactions are exempt from the state gross retail tax to the extent that the gross retail income from those transactions is derived from gross receipts that are: exempt from the gross income tax under IC 6-2.1-3-1 or IC 6-2.1-3-3.
         (1) interest or other earnings paid on bonds or other securities issued by the United States, to the extent the Constitution of the United States prohibits the taxation of that income; or
        (2) derived from business conducted in commerce between the state and either another state or a foreign country, to the

extent the state is prohibited from taxing that gross income by the Constitution of the United States.

SOURCE: IC 6-2.5-5-25; (02)IN1003.1.43. -->     SECTION 43. IC 6-2.5-5-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 25. (a) Transactions involving tangible personal property or service are exempt from the state gross retail tax, if the person acquiring the property or service:
        (1) is an organization which that is granted a gross income tax exemption under IC 6-2.1-3-20, IC 6-2.1-3-21, or IC 6-2.1-3-22; described in section 21(b)(1) of this chapter;
        (2) primarily uses the property or service to carry on or to raise money to carry on the its not-for-profit purpose; for which it receives the gross income tax exemption; and
        (3) is not an organization operated predominantly for social purposes.
    (b) Transactions occurring after December 31, 1976, and involving tangible personal property or service are exempt from the state gross retail tax, if the person acquiring the property or service:
        (1) is a fraternity, sorority, or student cooperative housing organization which that is granted a gross income tax exemption under IC 6-2.1-3-19; described in section 21(b)(1)(A) of this chapter; and
        (2) uses the property or service to carry on its ordinary and usual activities and operations as a fraternity, sorority, or student cooperative housing organization.
SOURCE: IC 6-2.5-5-26; (02)IN1003.1.44. -->     SECTION 44. IC 6-2.5-5-26 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 26. (a) Sales of tangible personal property are exempt from the state gross retail tax, if:
        (1) the seller is an organization which that is granted a gross income tax exemption under IC 6-2.1-3-19, IC 6-2.1-3-20, IC 6-2.1-3-21, or IC 6-2.1-3-22; described in section 21(b)(1) of this chapter;
        (2) the organization makes the sale to make money to carry on the a not-for-profit purpose; for which it receives its gross income tax exemption; and
        (3) the organization does not make those sales during more than thirty (30) days in a calendar year.
    (b) Sales of tangible personal property are exempt from the state gross retail tax, if:
        (1) the seller is an organization which is granted a gross income tax exemption under IC 6-2.1-3-19, IC 6-2.1-3-20, IC 6-2.1-3-21, or IC 6-2.1-3-22; described in section 21(b)(1) of this chapter;
        (2) the seller is not operated predominantly for social purposes;
        (3) the property sold is designed and intended primarily either for the organization's educational, cultural, or religious purposes, or for improvement of the work skills or professional qualifications of the organization's members; and
        (4) the property sold is not designed or intended primarily for use in carrying on a private or proprietary business.
    (c) The exemption provided by this section does not apply to an accredited college or university's sales of books, stationery, haberdashery, supplies, or other property.
SOURCE: IC 6-2.5-6-1; (02)IN1003.1.45. -->     SECTION 45. IC 6-2.5-6-1, AS AMENDED BY P.L.185-2001, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. (a) Each person liable for collecting the state gross retail or use tax shall file a return for each calendar month and pay the state gross retail and use taxes that the person collects during that month. A person shall file the person's return for a particular month with the department and make the person's tax payment for that month to the department not more than thirty (30) days after the end of that month, if that person's average monthly liability for collections of state gross retail and use taxes under this section as determined by the department for the preceding calendar year did not exceed one thousand dollars ($1,000). If a person's average monthly liability for collections of state gross retail and use taxes under this section as determined by the department for the preceding calendar year exceeded one thousand dollars ($1,000), that person shall file the person's return for a particular month and make the person's tax payment for that month to the department not more than twenty (20) days after the end of that month.
    (b) If a person files a combined sales and withholding tax report and either this section or IC 6-3-4-8.1 requires sales or withholding tax reports to be filed and remittances to be made within twenty (20) days after the end of each month, then the person shall file the combined report and remit the sales and withholding taxes due within twenty (20) days after the end of each month.
    (c) Instead of the reporting periods required under subsection (a), the department may permit a retail merchant to report and pay the merchant's state gross retail and use taxes for a period covering:
        (1) a calendar year, if the retail merchant's average monthly state gross retail and use tax liability in the previous calendar year does not exceed ten dollars ($10); or
        (2) a calendar half year, if the retail merchant's average monthly state gross retail and use tax liability in the previous calendar year does not exceed twenty-five dollars ($25).
A retail merchant using a reporting period allowed under this subsection must file the merchant's return and pay the merchant's tax for a reporting period not later than the last day of the month immediately following the close of that reporting period.
    (d) If a retail merchant reports the merchant's adjusted gross income tax, or the tax the merchant pays in place of the adjusted gross income tax, over a fiscal year or fiscal quarter not corresponding to the calendar year or calendar quarter, the merchant may, without prior departmental approval, report and pay the merchant's state gross retail and use taxes over the merchant's fiscal period that corresponds to the calendar period the merchant is permitted to use under subsection (c). However, the department may, at any time, require the retail merchant to stop using the fiscal reporting period.
    (e) If a retail merchant files a combined sales and withholding tax report, the reporting period for the combined report is the shortest period required under:
        (1) this section;
        (2) IC 6-3-4-8; or
        (3) IC 6-3-4-8.1.
    (f) If the department determines that a person's:
        (1) estimated monthly gross retail and use tax liability for the current year; or
        (2) average monthly gross retail and use tax liability for the preceding year;
exceeds ten thousand dollars ($10,000) the person shall pay the monthly gross retail and use taxes due by electronic fund transfer (as defined in IC 4-8.1-2-7) or by delivering in person or by overnight courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due.
SOURCE: IC 6-2.5-6-2; (02)IN1003.1.46. -->     SECTION 46. IC 6-2.5-6-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. A retail merchant may, without prior departmental approval, report and pay his state gross retail and use taxes on an accrual basis, if he uses the accrual basis to pay and report the adjusted gross income tax or the tax imposed on him in place of the adjusted gross income tax. The department may, at any time, require the retail merchant to stop using the accrual basis.
SOURCE: IC 6-2.5-6-7; (02)IN1003.1.47. -->     SECTION 47. IC 6-2.5-6-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. Except as otherwise provided in IC 6-2.5-7 or in this chapter, a retail merchant shall pay to the department, for a particular reporting period, an amount equal to

the product of:
        (1) five six percent (5%); (6%); multiplied by
        (2) the retail merchant's total gross retail income from taxable transactions made during the reporting period.
The amount determined under this section is the retail merchant's state gross retail and use tax liability regardless of the amount of tax he actually collects.

SOURCE: IC 6-2.5-6-8; (02)IN1003.1.48. -->     SECTION 48. IC 6-2.5-6-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. (a) For purposes of determining the amount of state gross retail and use taxes which he must remit under section 7 of this chapter, a retail merchant may exclude from his gross retail income from retail transactions made during a particular reporting period, an amount equal to the product of:
        (1) the amount of that gross retail income; multiplied by
        (2) the retail merchant's "income exclusion ratio" for the tax year which contains the reporting period.
    (b) A retail merchant's "income exclusion ratio" for a particular tax year equals a fraction, the numerator of which is the retail merchant's estimated total gross retail income for the tax year from unitary retail transactions which produce gross retail income of less than ten nine cents ($.10) ($0.09) each, and the denominator of which is the retail merchant's estimated total gross retail income for the tax year from all retail transactions.
    (c) In order to minimize a retail merchant's recordkeeping requirements, the department shall prescribe a procedure for determining the retail merchant's income exclusion ratio for a tax year, based on a period of time, not to exceed fifteen (15) consecutive days, during the first quarter of the retail merchant's tax year. However, the period of time may be changed if the change is requested by the retail merchant because of his peculiar accounting procedures or marketing factors. In addition, if a retail merchant has multiple sales locations or diverse types of sales, the department shall permit the retail merchant to determine the ratio on the basis of a representative sampling of the locations and types of sales.
SOURCE: IC 6-2.5-6-10; (02)IN1003.1.49. -->     SECTION 49. IC 6-2.5-6-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 10. (a) In order to compensate retail merchants for collecting and timely remitting the state gross retail tax and the state use tax, every retail merchant, except a retail merchant referred to in subsection (c), is entitled to deduct and retain from the amount of those taxes otherwise required to be remitted under IC 6-2.5-7-5 or under this chapter, if timely remitted, a retail merchant's collection allowance.
    (b) The allowance equals one eighty-three hundredths percent (1%) (0.83%) of the retail merchant's state gross retail and use tax liability accrued during a reporting period.
    (c) A retail merchant described in IC 6-2.5-4-5 or IC 6-2.5-4-6 is not entitled to the allowance provided by this section.
SOURCE: IC 6-2.5-7-3; (02)IN1003.1.50. -->     SECTION 50. IC 6-2.5-7-3, AS AMENDED BY P.L.222-1999, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. (a) With respect to the sale of gasoline which is dispensed from a metered pump, a retail merchant shall collect, for each unit of gasoline sold, state gross retail tax in an amount equal to the product, rounded to the nearest one-tenth of one cent ($.001), ($0.001), of:
        (i) (1) the price per unit before the addition of state and federal taxes; multiplied by
        (ii) five (2) six percent (5%). (6%).
The retail merchant shall collect the state gross retail tax prescribed in this section even if the transaction is exempt from taxation under IC 6-2.5-5.
    (b) With respect to the sale of special fuel or kerosene which is dispensed from a metered pump, unless the purchaser provides an exemption certificate in accordance with IC 6-2.5-8-8, a retail merchant shall collect, for each unit of special fuel or kerosene sold, state gross retail tax in an amount equal to the product, rounded to the nearest one-tenth of one cent ($.001), ($0.001), of:
        (i) (1) the price per unit before the addition of state and federal taxes; multiplied by
        (ii) five (2) six percent (5%). (6%).
Unless the exemption certificate is provided, the retail merchant shall collect the state gross retail tax prescribed in this section even if the transaction is exempt from taxation under IC 6-2.5-5.
SOURCE: IC 6-2.5-7-5; (02)IN1003.1.51. -->     SECTION 51. IC 6-2.5-7-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 5. (a) Each retail merchant who dispenses gasoline or special fuel from a metered pump shall, in the manner prescribed in IC 6-2.5-6, report to the department the following information:
        (1) The total number of gallons of gasoline sold from a metered pump during the period covered by the report.
        (2) The total amount of money received from the sale of gasoline described in subdivision (1) during the period covered by the report.
        (3) That portion of the amount described in subdivision (2) which represents state and federal taxes imposed under IC 6-2.5,

IC 6-6-1.1, or Section 4081 of the Internal Revenue Code.
        (4) The total number of gallons of special fuel sold from a metered pump during the period covered by the report.
        (5) The total amount of money received from the sale of special fuel during the period covered by the report.
        (6) That portion of the amount described in subdivision (5) that represents state and federal taxes imposed under IC 6-2.5, IC 6-6-2.5, or Section 4041 of the Internal Revenue Code.
    (b) Concurrently with filing the report, the retail merchant shall remit the state gross retail tax in an amount which equals one twenty-first (1/21) five and sixty-six hundredths percent (5.66%) of the gross receipts, including state gross retail taxes but excluding Indiana and federal gasoline and special fuel taxes, received by the retail merchant from the sale of the gasoline and special fuel that is covered by the report and on which the retail merchant was required to collect state gross retail tax. The retail merchant shall remit that amount regardless of the amount of state gross retail tax which he has actually collected under this chapter. However, the retail merchant is entitled to deduct and retain the amounts prescribed in subsection (c), IC 6-2.5-6-10, and IC 6-2.5-6-11.
    (c) A retail merchant is entitled to deduct from the amount of state gross retail tax required to be remitted under subsection (b) an amount equal to:
        (1) the sum of the prepayment amounts made during the period covered by the retail merchant's report; minus
        (2) the sum of prepayment amounts collected by the retail merchant, in the merchant's capacity as a qualified distributor, during the period covered by the retail merchant's report.
For purposes of this section, a prepayment of the gross retail tax is presumed to occur on the date on which it is invoiced.

SOURCE: IC 6-2.5-10-1; (02)IN1003.1.52. -->     SECTION 52. IC 6-2.5-10-1, AS AMENDED BY P.L.253-1999, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. (a) The department shall account for all state gross retail and use taxes that it collects.
    (b) The department shall deposit those collections in the following manner:
        (1) Forty percent (40%) of the collections shall be paid into the property tax replacement fund established under IC 6-1.1-21.
        (2) Fifty-nine and three-hundredths percent (59.03%)
         (1) Ninety-nine and one hundred ninety-two thousandths percent (99.192%) of the collections shall be paid into the state general fund.
        (3) Seventy-six hundredths (2) Six hundred thirty-three thousandths of one percent (0.76%) (0.633%) of the collections shall be paid into the public mass transportation fund established by IC 8-23-3-8.
        (4) Four hundredths (3) Thirty-three thousandths of one percent (0.04%) (0.033%) of the collections shall be deposited into the industrial rail service fund established under IC 8-3-1.7-2.
        (5) Seventeen hundredths (4) One hundred forty-two thousandths of one percent (0.17%) (0.142%) of the collections shall be deposited into the commuter rail service fund established under IC 8-3-1.5-20.5.
SOURCE: IC 6-2.5-10-2; (02)IN1003.1.53. -->     SECTION 53. IC 6-2.5-10-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. The provisions of the adjusted gross income tax law (IC 6-2.1), (IC 6-3), which do not conflict with the provisions of this article and which deal with any of the following subjects, apply for the purposes of imposing, collecting, and administering the state gross retail and use taxes under this article:
        (1) Filing of returns.
        (2) Auditing of returns.
        (3) Investigation of tax liability.
        (4) Determination of tax liability.
        (5) Notification of tax liability.
        (6) Assessment of tax liability.
        (7) Collection of tax liability.
        (8) Examination of taxpayer's books and records.
        (9) Legal proceedings.
        (10) Court actions.
        (11) Remedies.
        (12) Privileges.
        (13) Taxpayer and departmental relief.
        (14) Statutes of limitations.
        (15) Hearings.
        (16) Refunds.
        (17) Remittances.
        (18) Imposition of penalties and interest.
        (19) Maintenance of departmental records.
        (20) Confidentiality of taxpayer's returns.
        (21) Duties of the secretary of state and the treasurer of state.
        (22) Administration.
SOURCE: IC 6-3-1-3.5; (02)IN1003.1.54. -->     SECTION 54. IC 6-3-1-3.5, AS AMENDED BY P.L.14-2000, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3.5. When used in IC 6-3, this article, the

term "adjusted gross income" shall mean the following:
    (a) In the case of all individuals, "adjusted gross income" (as defined in Section 62 of the Internal Revenue Code), modified as follows:
        (1) Subtract income that is exempt from taxation under IC 6-3 this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section 62 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state of the United States.
        (3) Subtract one thousand dollars ($1,000), or in the case of a joint return filed by a husband and wife, subtract for each spouse one thousand dollars ($1,000).
        (4) Subtract one thousand dollars ($1,000) for:
            (A) each of the exemptions provided by Section 151(c) of the Internal Revenue Code;
            (B) each additional amount allowable under Section 63(f) of the Internal Revenue Code; and
            (C) the spouse of the taxpayer if a separate return is made by the taxpayer and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.
        (5) Subtract:
            (A) one two thousand five hundred dollars ($1,500) ($2,000) for each of the exemptions allowed under Section 151(c)(1)(B) of the Internal Revenue Code; for taxable years beginning after December 31, 1996; and
            (B) five hundred dollars ($500) for each additional amount allowable under Section 63(f)(1) of the Internal Revenue Code if the adjusted gross income of the taxpayer, or the taxpayer and the taxpayer's spouse in the case of a joint return, is less than forty thousand dollars ($40,000).
        This amount is in addition to the amount subtracted under subdivision (4).
        (6) Subtract an amount equal to the lesser of:
            (A) that part of the individual's adjusted gross income (as defined in Section 62 of the Internal Revenue Code) for that taxable year that is subject to a tax that is imposed by a political subdivision of another state and that is imposed on or measured by income; or
            (B) two thousand dollars ($2,000).
        (7) Add an amount equal to the total capital gain portion of a lump sum distribution (as defined in Section 402(e)(4)(D) of the Internal

Revenue Code) if the lump sum distribution is received by the individual during the taxable year and if the capital gain portion of the distribution is taxed in the manner provided in Section 402 of the Internal Revenue Code.
        (8) Subtract any amounts included in federal adjusted gross income under Internal Revenue Code Section 111 as a recovery of items previously deducted as an itemized deduction from adjusted gross income.
        (9) Subtract any amounts included in federal adjusted gross income under the Internal Revenue Code which amounts were received by the individual as supplemental railroad retirement annuities under 45 U.S.C. 231 and which are not deductible under subdivision (1).
        (10) Add an amount equal to the deduction allowed under Section 221 of the Internal Revenue Code for married couples filing joint returns if the taxable year began before January 1, 1987.
        (11) Add an amount equal to the interest excluded from federal gross income by the individual for the taxable year under Section 128 of the Internal Revenue Code if the taxable year began before January 1, 1985.
        (12) Subtract an amount equal to the amount of federal Social Security and Railroad Retirement benefits included in a taxpayer's federal gross income by Section 86 of the Internal Revenue Code.
        (13) In the case of a nonresident taxpayer or a resident taxpayer residing in Indiana for a period of less than the taxpayer's entire taxable year, the total amount of the deductions allowed pursuant to subdivisions (3), (4), (5), and (6) shall be reduced to an amount which bears the same ratio to the total as the taxpayer's income taxable in Indiana bears to the taxpayer's total income.
        (14) In the case of an individual who is a recipient of assistance under IC 12-10-6-1, IC 12-10-6-2, IC 12-15-2-2, or IC 12-15-7, subtract an amount equal to that portion of the individual's adjusted gross income with respect to which the individual is not allowed under federal law to retain an amount to pay state and local income taxes.
        (15) In the case of an eligible individual, subtract the amount of a Holocaust victim's settlement payment included in the individual's federal adjusted gross income.
        (16) For taxable years beginning after December 31, 1999, subtract an amount equal to the portion of any premiums paid during the taxable year by the taxpayer for a qualified long term care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the taxpayer's spouse, or both.


        (17) Subtract an amount equal to the lesser of:
            (A) 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.
    (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 IC 6-3 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.
    (c) In the case of trusts and estates, "taxable income" (as defined for trusts and estates in Section 641(b) of the Internal Revenue Code) reduced by income that is exempt from taxation under IC 6-3 this article by the Constitution and statutes of the United States.
SOURCE: IC 6-3-1-11; (02)IN1003.1.55. -->     SECTION 55. IC 6-3-1-11, AS AMENDED BY P.L.9-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) The term "Internal Revenue Code" means the Internal Revenue Code of 1986 of the United States as amended and in effect on January 1, 2001.
    (b) Whenever the Internal Revenue Code is mentioned in this article, the particular provisions that are referred to, together with all the other provisions of the Internal Revenue Code in effect on January 1, 2001, that pertain to the provisions specifically mentioned, shall be regarded as incorporated in this article by reference and have the same force and effect as though fully set forth in this article. To the extent the provisions apply to this article, regulations adopted under Section 7805(a) of the Internal Revenue Code and in effect on January 1, 2001, shall be regarded as rules adopted by the department under this article, unless the department adopts specific rules that supersede the regulation.
    (c) An amendment to the Internal Revenue Code made by an act passed by Congress before January 1, 2001, that is effective for any taxable year that began before January 1, 2001, and that affects:
        (1) individual adjusted gross income (as defined in Section 62 of the Internal Revenue Code);
        (2) corporate taxable income (as defined in Section 63 of the Internal Revenue Code);
        (3) trust and estate taxable income (as defined in Section 641(b) of the Internal Revenue Code);
        (4) life insurance company taxable income (as defined in Section 801(b) of the Internal Revenue Code);
        (5) mutual insurance company taxable income (as defined in Section 821(b) of the Internal Revenue Code); or
        (6) taxable income (as defined in Section 832 of the Internal Revenue Code);
is also effective for that same taxable year for purposes of determining adjusted gross income under IC 6-3-1-3.5 and net income under IC 6-3-8-2(b). section 3.5 of this chapter.
SOURCE: IC 6-3-2-1; (02)IN1003.1.56. -->     SECTION 56. IC 6-3-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) Each taxable year, a tax at the rate of:
         (1) three and four-tenths nine-tenths percent (3.4%) (3.9%) of the first ninety thousand dollars ($90,000) of adjusted gross income; and
        (2) four and four-tenths percent (4.4%) of adjusted gross income that exceeds ninety thousand dollars ($90,000);

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. The tax rate imposed by this subsection applies to the total taxable income reported on a return filed under IC 6-3-4, regardless of whether the return is a separate or joint return.
    (b) Each taxable year, a tax at the rate of three eight and four-tenths five-tenths percent (3.4%) (8.5%) of adjusted gross income is imposed on that part of the adjusted gross income derived from sources within Indiana of every corporation.
SOURCE: IC 6-3-2-2.3; (02)IN1003.1.57. -->     SECTION 57. IC 6-3-2-2.3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2.3. Notwithstanding any other provision of this article, with respect to a person, corporation, or partnership that has contracted with a commercial printer for printing:
        (1) the ownership or leasing by that entity of tangible or intangible property located at the Indiana premises of the commercial printer;
        (2) the sale by that entity of property of any kind produced at and shipped or distributed from the Indiana premises of the commercial

printer;
        (3) the activities of any kind performed by or on behalf of that entity at the Indiana premises of the commercial printer; and
        (4) the activities performed by the commercial printer in Indiana for or on behalf of that entity;
shall not cause that entity to have adjusted gross income derived from sources within Indiana for purposes of the taxes imposed by this chapter, and IC 6-3-8, unless that entity engages in other activities in Indiana away from the premises of the commercial printer that exceed the protection of 15 U.S.C. 381.

SOURCE: IC 6-3-2-3.1; (02)IN1003.1.58. -->     SECTION 58. IC 6-3-2-3.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3.1. (a) Except as otherwise provided in subsection (b), income is not exempt from the adjusted gross income tax or the supplemental net income tax, under section 2.8(1) of this chapter if the income is derived by the exempt organization from an unrelated trade or business, as defined in Section 513 of the Internal Revenue Code.
    (b) This section does not apply to:
        (1) the United States government;
        (2) an agency or instrumentality of the United States government;
        (3) this state;
        (4) a state agency, as defined in IC 34-6-2-141;
        (5) a political subdivision, as defined in IC 34-6-2-110; or
        (6) a county solid waste management district or a joint solid waste management district established under IC 13-21 or IC 13-9.5-2 (before its repeal).
SOURCE: IC 6-3-2-6; (02)IN1003.1.59. -->     SECTION 59. IC 6-3-2-6, AS AMENDED BY P.L.14-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) Each taxable year, an individual who rents a dwelling for use as his the individual's principal place of residence may deduct from his the individual's adjusted gross income (as defined in IC 6-3-1-3.5(a)), the lesser of:
        (1) the amount of rent paid by him the individual with respect to the dwelling during the taxable year; or
        (2) two three thousand dollars ($2,000). ($3,000).
    (b) Notwithstanding subsection (a), a husband and wife filing a joint adjusted gross income tax return for a particular taxable year may not claim a deduction under this section of more than two three thousand dollars ($2,000). ($3,000).
    (c) The deduction provided by this section does not apply to an individual who rents a dwelling that is exempt from Indiana property tax.
    (d) For purposes of this section, a "dwelling" includes a single family dwelling and unit of a multi-family dwelling.
SOURCE: IC 6-3-4-4.1; (02)IN1003.1.60. -->     SECTION 60. IC 6-3-4-4.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4.1. (a) This section applies to taxable years beginning after December 31, 1993.
    (b) Any individual required by the Internal Revenue Code to file estimated tax returns and to make payments on account of such estimated tax shall file estimated tax returns and make payments of the tax imposed by this article to the department at the time or times and in the installments as provided by Section 6654 of the Internal Revenue Code. However, in applying Section 6654 of the Internal Revenue Code for the purposes of this article, "estimated tax" means the amount which the individual estimates as the amount of the adjusted gross income tax imposed by this article for the taxable year, minus the amount which the individual estimates as the sum of any credits against the tax provided by IC 6-3-3.
    (c) Every individual who has adjusted gross income subject to the tax imposed by this article and from which tax is not withheld under the requirements of section 8 of this chapter shall make a declaration of estimated tax for the taxable year. However, no such declaration shall be required if the estimated tax can reasonably be expected to be less than four hundred dollars ($400). In the case of an underpayment of the estimated tax as provided in Section 6654 of the Internal Revenue Code, there shall be added to the tax a penalty in an amount prescribed by IC 6-8.1-10-2.1(b).
    (d) Every corporation subject to the adjusted gross income tax liability imposed by IC 6-3 shall be required to report and pay an estimated tax equal to twenty-five percent (25%) of such corporation's estimated adjusted gross income tax liability for the taxable year. less the credit allowed by IC 6-3-3-2 for the tax imposed on gross income. Such estimated payment shall be made at the same time and in conjunction with the reporting of gross income tax as provided for in IC 6-2.1-5. A taxpayer who uses a taxable year that ends on December 31 shall file the taxpayer's estimated adjusted gross income tax returns and pay the tax to the department on or before April 20, June 20, September 20, and December 20 of the taxable year. If a taxpayer uses a taxable year that does not end on December 31, the due dates for filing estimated adjusted gross income tax returns and paying the tax are on or before the twentieth day of the fourth, sixth, ninth, and twelfth months of the taxpayer's taxable year. The department shall prescribe the manner and forms for such reporting and payment.
    (e) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be assessed by the department on corporations failing to make payments as required in subsection (d) or (g). However, no penalty shall be assessed as to any estimated payments of adjusted gross income tax plus supplemental net income tax plus gross income tax which equal or exceed:
        (1) twenty percent (20%) of the final tax liability for such taxable year; or
        (2) twenty-five percent (25%) of the final tax liability for the taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an estimated return shall only be assessed on the difference between the actual amount paid by the corporation on such estimated return and twenty-five percent (25%) of the sum of the corporation's final adjusted gross income tax plus supplemental net income tax liability for such taxable year.
    (f) The provisions of subsection (d) requiring the reporting and estimated payment of adjusted gross income tax shall be applicable only to corporations having an adjusted gross income tax liability which, after application of the credit allowed by IC 6-3-3-2, shall exceed one thousand dollars ($1,000) for its taxable year.
    (g) If the department determines that a corporation's:
        (1) estimated quarterly adjusted gross income tax liability for the current year; or
        (2) average estimated quarterly adjusted gross income tax liability for the preceding year;
exceeds, before January 1, 1998, twenty thousand dollars ($20,000), and, after December 31, 1997, ten thousand dollars ($10,000), after the credit allowed by IC 6-3-3-2, the corporation shall pay the estimated adjusted gross income taxes due by electronic funds transfer (as defined in IC 4-8.1-2-7) or by delivering in person or overnight by courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due.
    (h) If a corporation's adjusted gross income tax payment is made by electronic funds transfer, the corporation is not required to file an estimated adjusted gross income tax return.
SOURCE: IC 6-3-4-8; (02)IN1003.1.61. -->     SECTION 61. IC 6-3-4-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) Except as provided in subsection (d) or (l), every employer making payments of wages subject to tax under IC 6-3, regardless of the place where such payment is made, who is required under the provisions of the Internal Revenue

Code to withhold, collect, and pay over income tax on wages paid by such employer to such employee, shall, at the time of payment of such wages, deduct and retain therefrom the amount prescribed in withholding instructions issued by the department. The department shall base its withholding instructions on the adjusted gross income tax rate for persons, on the total rates of any income taxes that the taxpayer is subject to under IC 6-3.5, and on the total amount of exclusions the taxpayer is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4). Such employer making payments of any wages:
        (1) shall be liable to the state of Indiana for the payment of the tax required to be deducted and withheld under this section and shall not be liable to any individual for the amount deducted from his the individual's wages and paid over in compliance or intended compliance with this section; and
        (2) shall make return of and payment to the department monthly of the amount of tax which under IC 6-3 and IC 6-3.5 he the employer is required to withhold.
    (b) An employer shall pay taxes withheld under subsection (a) during a particular month to the department no later than thirty (30) days after the end of that month. However, in place of monthly reporting periods, the department may permit an employer to report and pay the tax for:
        (1) a calendar year reporting period, if the average monthly amount of all tax required to be withheld by the employer in the previous calendar year does not exceed ten dollars ($10);
        (2) a six (6) month reporting period, if the average monthly amount of all tax required to be withheld by the employer in the previous calendar year does not exceed twenty-five dollars ($25); or
        (3) a three (3) month reporting period, if the average monthly amount of all tax required to be withheld by the employer in the previous calendar year does not exceed seventy-five dollars ($75).
An employer using a reporting period (other than a monthly reporting period) must file the employer's return and pay the tax for a reporting period no later than the last day of the month immediately following the close of the reporting period. If an employer files a combined sales and withholding tax report, the reporting period for the combined report is the shortest period required under this section, section 8.1 of this chapter, or IC 6-2.5-6-1.
    (c) For purposes of determining whether an employee is subject to taxation under IC 6-3.5, an employer is entitled to rely on the statement of his an employee as to his the employee's county of residence as represented by the statement of address in forms claiming exemptions for purposes of withholding, regardless of when the employee supplied

the forms. Every employee shall notify his the employee's employer within five (5) days after any change in his the employee's county of residence.
    (d) A county that makes payments of wages subject to tax under IC 6-3:
        (1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
        (2) for the performance of the duties of the precinct election officer imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and retain from the wages the amount prescribed in withholding instructions issued by the department.
    (e) Every employer shall, at the time of each payment made by him the employer to the department, deliver to the department a return upon the form prescribed by the department showing:
        (1) the total amount of wages paid to his the employer's employees;
        (2) the amount deducted therefrom in accordance with the provisions of the Internal Revenue Code;
        (3) the amount of adjusted gross income tax deducted therefrom in accordance with the provisions of this section;
        (4) the amount of income tax, if any, imposed under IC 6-3.5 and deducted therefrom in accordance with this section; and
        (5) any other information the department may require.
Every employer making a declaration of withholding as provided in this section shall furnish his the employer's employees annually, but not later than thirty (30) days after the end of the calendar year, a record of the total amount of adjusted gross income tax and the amount of each income tax, if any, imposed under IC 6-3.5, withheld from the employees, on the forms prescribed by the department.
    (f) All money deducted and withheld by an employer shall immediately upon such deduction be the money of the state, and every employer who deducts and retains any amount of money under the provisions of IC 6-3 shall hold the same in trust for the state of Indiana and for payment thereof to the department in the manner and at the times provided in IC 6-3. Any employer may be required to post a surety bond in the sum the department determines to be appropriate to protect the state with respect to money withheld pursuant to this section.
    (g) The provisions of IC 6-8.1 relating to additions to tax in case of delinquency and penalties shall apply to employers subject to the provisions of this section, and for these purposes any amount deducted or required to be deducted and remitted to the department under this

section shall be considered to be the tax of the employer, and with respect to such amount the employer shall be considered the taxpayer. In the case of a corporate or partnership employer, every officer, employee, or member of such employer, who, as such officer, employee, or member is under a duty to deduct and remit such taxes shall be personally liable for such taxes, penalties, and interest.
    (h) Amounts deducted from wages of an employee during any calendar year in accordance with the provisions of this section shall be considered to be in part payment of the tax imposed on such employee for his the employee's taxable year which begins in such calendar year, and a return made by the employer under subsection (b) shall be accepted by the department as evidence in favor of the employee of the amount so deducted from his the employee's wages. Where the total amount so deducted exceeds the amount of tax on the employee as computed under IC 6-3 and IC 6-3.5, the department shall, after examining the return or returns filed by the employee in accordance with IC 6-3 and IC 6-3.5, refund the amount of the excess deduction. However, under rules promulgated by the department, the excess or any part thereof may be applied to any taxes or other claim due from the taxpayer to the state of Indiana or any subdivision thereof. No refund shall be made to an employee who fails to file his the employee's return or returns as required under IC 6-3 and IC 6-3.5 within two (2) years from the due date of the return or returns. In the event that the excess tax deducted is less than one dollar ($1), no refund shall be made.
    (i) This section shall in no way relieve any taxpayer from his the taxpayer's obligation of filing a return or returns at the time required under IC 6-3 and IC 6-3.5, and, should the amount withheld under the provisions of this section be insufficient to pay the total tax of such taxpayer, such unpaid tax shall be paid at the time prescribed by section 5 of this chapter.
    (j) Notwithstanding subsection (b), an employer of a domestic service employee that enters into an agreement with the domestic service employee to withhold federal income tax under Section 3402 of the Internal Revenue Code may withhold Indiana income tax on the domestic service employee's wages on the employer's Indiana individual income tax return in the same manner as allowed by Section 3510 of the Internal Revenue Code.
    (k) To the extent allowed by Section 1137 of the Social Security Act, an employer of a domestic service employee may report and remit state unemployment insurance contributions on the employee's wages on the employer's Indiana individual income tax return in the same manner as

allowed by Section 3510 of the Internal Revenue Code.
    (l) An employer is exempt from the withholding requirements of this section for an individual if the individual certifies to the employer, on forms prescribed by the department, that the individual's wages from the employer for the calendar year will:
        (1) comprise more than eighty percent (80%) of the individual's Indiana total income (as defined in IC 6-3.1-21-3); and
        (2) not exceed fifteen thousand dollars ($15,000).

     (m) A person who knowingly fails to remit trust fund money as set forth in this section commits a Class D felony.

SOURCE: IC 6-3-7-2.5; (02)IN1003.1.62. -->     SECTION 62. IC 6-3-7-2.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2.5. (a) Revenues derived from the imposition and collection of the adjusted gross income tax (IC 6-3-1 through IC 6-3-7) shall be allocated between and deposited in the state general fund. and the property tax replacement fund (IC 6-1.1-21) in the manner prescribed by this section and section 3 of this chapter.
    (b) With respect to each adjusted gross income tax payment received from a corporation, the amount determined in STEP FOUR of the following STEPS shall be allocated to and deposited in the state general fund:
        STEP ONE: Enter the adjusted gross income tax rate in effect for the taxable year for which the payment is made.
        STEP TWO: Subtract three percent (3%) from the rate entered under STEP ONE.
        STEP THREE: Divide the remainder determined under STEP TWO by three percent (3%).
        STEP FOUR: Multiply the amount of the adjusted gross income tax payment by the quotient determined under STEP THREE.
SOURCE: IC 6-3-7-3; (02)IN1003.1.63. -->     SECTION 63. IC 6-3-7-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) All revenues derived from collection of the adjusted gross income tax imposed on corporations (except the tax revenues allocated under section 2.5 of this chapter to the state general fund) shall be deposited as follows:
        (1) Ten million dollars ($10,000,000) shall for each state fiscal year be deposited in the state general fund.
        (2) The balance of such revenues shall be deposited into the property tax replacement fund.
    (b) All revenues derived from collection of the adjusted gross income tax imposed on persons shall be deposited in the state general fund.
SOURCE: IC 6-3.1-2-1; (02)IN1003.1.64. -->     SECTION 64. IC 6-3.1-2-1 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter, the following terms have the following meanings:
        (1) "Eligible teacher" means a teacher:
            (A) certified in a shortage area by the professional standards board established by IC 20-1-1.4; and
            (B) employed under contract during the regular school term by a school corporation in a shortage area.
        (2) "Qualified position" means a position that:
            (A) is relevant to the teacher's academic training in a shortage area; and
            (B) has been approved by the Indiana state board of education under section 6 of this chapter.
        (3) "Regular school term" means the period, other than the school summer recess, during which a teacher is required to perform duties assigned to him under a teaching contract.
        (4) "School corporation" means any corporation authorized by law to establish public schools and levy taxes for their maintenance.
        (5) "Shortage area" means the subject areas of mathematics and science and any other subject area designated as a shortage area by the Indiana state board of education.
        (6) "State income tax liability" means a taxpayer's total income tax liability incurred under IC 6-2.1 and IC 6-3 and IC 6-5.5, as computed after application of credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.

SOURCE: IC 6-3.1-2-5; (02)IN1003.1.65. -->     SECTION 65. IC 6-3.1-2-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) A credit to which a taxpayer is entitled under this chapter shall be applied in the following manner:
        (1) First, against the taxpayer's gross income tax liability for the taxable year.
        (2) Second, against the taxpayer's adjusted gross income tax liability for the taxable year.
        (3) Third, against the taxpayer's supplemental net income tax liability for the taxable year.
    (b) A taxpayer that is subject to the financial institutions tax may apply the credit provided by this chapter against the taxpayer's financial institutions tax liability for the taxable year.
SOURCE: IC 6-3.1-4-1; (02)IN1003.1.66. -->     SECTION 66. IC 6-3.1-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter:
    "Base amount" means base amount (as defined in Section 41(c) of the Internal Revenue Code as in effect on January 1, 2001).
    "Base period Indiana qualified research expense" means base period research expense that is incurred for research conducted in Indiana.
    "Base period research expense" means base period research expense (as defined in Section 41(c) of the Internal Revenue Code before January 1, 1990).
    "Indiana qualified research expense" means qualified research expense that is incurred for research conducted in Indiana.
    "Qualified research expense" means qualified research expense (as defined in Section 41(b) of the Internal Revenue Code as in effect on January 1, 2001).
    "Pass through entity" means:
        (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) a partnership;
        (3) a limited liability company; or
        (4) a limited liability partnership.
    "Research expense tax credit" means a credit provided under this chapter against any tax otherwise due and payable under IC 6-2.1 or IC 6-3.
    "Taxpayer" means an individual, a corporation, a limited liability company, a limited liability partnership, a trust, or a partnership.
SOURCE: IC 6-3.1-4-1; (02)IN1003.1.67. -->     SECTION 67. IC 6-3.1-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter:
    "Base amount" means base amount (as defined in Section 41(c) of the Internal Revenue Code).
    "Base period Indiana qualified research expense" means base period research expense that is incurred for research conducted in Indiana.
    "Base period research expense" means base period research expense (as defined in Section 41(c) of the Internal Revenue Code before January 1, 1990).
    "Indiana qualified research expense" means qualified research expense that is incurred for research conducted in Indiana.
    "Qualified research expense" means qualified research expense (as defined in Section 41(b) of the Internal Revenue Code).
    "Pass through entity" means:
        (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) a partnership;
        (3) a limited liability company; or
        (4) a limited liability partnership.
    "Research expense tax credit" means a credit provided under this

chapter against any tax otherwise due and payable under IC 6-2.1 or IC 6-3.
    "Taxpayer" means an individual, a corporation, a limited liability company, a limited liability partnership, a trust, or a partnership that has any tax liability under IC 6-3 (adjusted gross income tax).

SOURCE: IC 6-3.1-4-2; (02)IN1003.1.68. -->     SECTION 68. IC 6-3.1-4-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) A taxpayer who incurs Indiana qualified research expense in a particular taxable year is entitled to a research expense tax credit for the taxable year
    (b) A taxpayer who does not have income apportioned to this state for a taxable year under IC 6-3-2-2 is entitled to a research expense tax credit for the taxable year in the amount of the product of:
        (1) five twenty percent (5%); (20%); multiplied by
        (2) the remainder of the taxpayer's Indiana qualified research expenses for the taxable year, minus:
            (A) the taxpayer's base period Indiana qualified research expenses, for taxable years beginning before January 1, 1990; or
            (B) the taxpayer's base amount, for taxable years beginning after December 31, 1989.
    (c) A taxpayer who has income apportioned to this state for a taxable year under IC 6-3-2-2 is entitled to a research expense tax credit for the taxable year in the amount of the lesser of:
        (1) the amount determined under subsection (b); or
        (2) five percent (5%) multiplied by the remainder of the taxpayer's total qualified research expenses for the taxable year, minus:
            (A) the taxpayer's base period research expenses, for taxable years beginning before January 1, 1990; or
            (B) the taxpayer's base amount, for taxable years beginning after December 31, 1989;
        further multiplied by the percentage determined under IC 6-3-2-2 for the apportionment of the taxpayer's income for the taxable year to this state.
SOURCE: IC 6-3.1-4-3; (02)IN1003.1.69. -->     SECTION 69. IC 6-3.1-4-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) The amount of the credit provided by this chapter that a taxpayer uses during a particular taxable year may not exceed the sum of the taxes imposed by IC 6-2.1 and IC 6-3 for the taxable year after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter. If the credit provided by this chapter exceeds that sum for the taxable year for which the credit is first claimed, then the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the taxpayer

under IC 6-2.1 or IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, it is to be reduced by the amount which was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for fifteen (15) taxable years following the unused credit year.
    (b) A credit earned by a taxpayer in a particular taxable year shall be applied against the taxpayer's tax liability for that taxable year before any credit carryover is applied against that liability under subsection (a).
    (c) A taxpayer is not entitled to any carryback or refund of any unused credit.

SOURCE: IC 6-3.1-4-4; (02)IN1003.1.70. -->     SECTION 70. IC 6-3.1-4-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. The provisions of Section 41 of the Internal Revenue Code as in effect on January 1, 2001, and the regulations promulgated in respect to those provisions and in effect on January 1, 2001, are applicable to the interpretation and administration by the department of the credit provided by this chapter, including the allocation and pass through of the credit to various taxpayers and the transitional rules for determination of the base period.
SOURCE: IC 6-3.1-4-6; (02)IN1003.1.71. -->     SECTION 71. IC 6-3.1-4-6, AS AMENDED BY P.L.4-2000, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. Notwithstanding the other provisions of this chapter, a taxpayer is not entitled to a credit for Indiana qualified research expense incurred after December 31, 2002. Notwithstanding Section 41 of the Internal Revenue Code, the termination date in Section 41(h) of the Internal Revenue Code does not apply to a taxpayer who is eligible for the credit under this chapter for the taxable year in which the Indiana qualified research expense is incurred.
SOURCE: IC 6-3.1-5-2; (02)IN1003.1.72. -->     SECTION 72. IC 6-3.1-5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. As used in this chapter:
    "New partnership interest" means a general or a limited partnership interest in a limited partnership if the interest is acquired by the taxpayer from the limited partnership.
    "New stock" means a share of stock of a corporation if the stock, when purchased by the taxpayer, is authorized but unissued.
    "Qualified entity" means the state corporation or other corporation or limited partnership in which the state corporation purchases, before January 1, 1984, new stock or a new partnership interest under section 7(d) of this chapter.
    "Qualified investment" means new stock or a new partnership interest in a qualified entity, if the new stock or the new partnership interest is purchased by the taxpayer solely for cash.
    "State corporation" means the corporation organized under sections 7 and 8 of this chapter.
    "State tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 27-1-18-2 (the insurance premiums tax); and
        (7) (3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
    "Taxpayer" means any person, corporation, partnership, or other entity that has any state tax liability.
SOURCE: IC 6-3.1-5-9; (02)IN1003.1.73. -->     SECTION 73. IC 6-3.1-5-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The state corporation is exempt from all state tax levies, including but not limited to the gross income tax (IC 6-2.1), state gross retail tax (IC 6-2.5), use tax (IC 6-2.5-3), and adjusted gross income tax (IC 6-3-1 through IC 6-3-7). and the supplemental net income tax (IC 6-3-8). However, the state corporation is not exempt from employment taxes or taxes imposed by a county or by a municipal corporation.
SOURCE: IC 6-3.1-5-10; (02)IN1003.1.74. -->     SECTION 74. IC 6-3.1-5-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. (a) Except as provided in subsection (b), income that is received by a taxpayer that is a corporation (as defined in IC 6-3-1-10) by reason of ownership of a qualified investment is exempt from gross income tax (IC 6-2.1), adjusted gross income tax (IC 6-3-1 through IC 6-3-7). and supplemental net income tax (IC 6-3-8).
    (b) The exemption provided under subsection (a) shall not apply to any income realized by reason of the sale or other disposition of the qualified investment.
SOURCE: IC 6-3.1-5-11; (02)IN1003.1.75. -->     SECTION 75. IC 6-3.1-5-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. A taxpayer is exempt from a tax to the extent that the tax is based on or measured by a qualified investment, including but not limited to a tax which might otherwise be imposed with respect to the qualified investment. under the bank tax (IC 6-5-10) or the savings and loan association tax

(IC 6-5-11).

SOURCE: IC 6-3.1-5-13; (02)IN1003.1.76. -->     SECTION 76. IC 6-3.1-5-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 13. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order:
        (1) First, against the taxpayer's gross income tax liability (IC 6-2.1) for the taxable year.
        (2) Second, against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.
        (3) Third, against the taxpayer's supplemental net income tax liability (IC 6-3-8) for the taxable year.
        (4) Fourth, against the taxpayer's bank tax liability (IC 6-5-10) or savings and loan association tax liability (IC 6-5-11) for the taxable year.
        (5) Fifth, (2) Second, against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) for the taxable year.
    (b) If the tax paid by the taxpayer under a tax provision listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.
    (c) A taxpayer that is subject to the financial institutions tax may apply the credit provided by this chapter against the taxpayer's financial institutions tax liability for the taxable year.
SOURCE: IC 6-3.1-6-1; (02)IN1003.1.77. -->     SECTION 77. IC 6-3.1-6-1, AS AMENDED BY P.L.129-2001, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. For the purposes of this chapter:
    "Agreement" means any agreement entered into with the commissioner of the department of correction under IC 11-10-7-2 that has been approved by a majority of the members of the state board of correction.
    "Pass through entity" means a:
        (1) corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) partnership;
        (3) trust;
        (4) limited liability company; or
        (5) limited liability partnership.
    "Qualified property" means any machinery, tools, equipment, building, structure, or other tangible property considered qualified property under Section 38 of the Internal Revenue Code that is used as an integral part of the operation contemplated by an agreement and that

is installed, used, or operated exclusively on property managed by the department of correction.
    "State income tax liability" means a taxpayer's total income tax liability incurred under IC 6-2.1 and IC 6-3, as computed after application of credits that, under IC 6-3.1-1-2, are to be applied before the credit provided by this chapter.
    "Taxpayer" means any person, corporation, limited liability company, partnership, or other entity that has state tax liability. The term includes a pass through entity.
    "Wages paid" includes all earnings surrendered to the department of correction under IC 11-10-7-5.

SOURCE: IC 6-3.1-7-1; (02)IN1003.1.78. -->     SECTION 78. IC 6-3.1-7-1, AS AMENDED BY P.L.120-1999, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter:
    "Enterprise zone" means an enterprise zone created under IC 4-4-6.1.
    "Pass through entity" means a:
        (1) corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) partnership;
        (3) trust;
        (4) limited liability company; or
        (5) limited liability partnership.
    "Qualified loan" means a loan made to an entity that uses the loan proceeds for:
        (1) a purpose that is directly related to a business located in an enterprise zone;
        (2) an improvement that increases the assessed value of real property located in an enterprise zone; or
        (3) rehabilitation, repair, or improvement of a residence.
    "State tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 27-1-18-2 (the insurance premiums tax); and
        (7) (3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under IC 6-3.1-1-2, are to be applied before the credit provided by this chapter.
    "Taxpayer" means any person, corporation, limited liability company,

partnership, or other entity that has any state tax liability The term includes a pass through entity.

SOURCE: IC 6-3.1-7-4; (02)IN1003.1.79. -->     SECTION 79. IC 6-3.1-7-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order:
        (1) First, against the taxpayer's gross income tax liability (IC 6-2.1) for the taxable year.
        (2) Second, against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.
        (3) Third, against the taxpayer's supplemental net income tax liability (IC 6-3-8) for the taxable year.
        (4) Fourth, against the taxpayer's bank tax liability (IC 6-5-10) or savings and loan association tax liability (IC 6-5-11) for the taxable year.
        (5) Fifth, (2) Second, against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) for the taxable year.
         (3) Third, against the taxpayer's financial institutions tax liability (IC 6-5.5) for the taxable year.
    (b) If the tax paid by the taxpayer under a tax provision listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.
SOURCE: IC 6-3.1-9-1; (02)IN1003.1.80. -->     SECTION 80. IC 6-3.1-9-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter:
    "Business firm" means any business entity authorized to do business in the state of Indiana that is:
        (1) subject to the gross, adjusted gross, supplemental net income, or financial institutions tax;
        (2) an employer exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7) under IC 6-3-2-2.8(2); or
        (3) a partnership. has state tax liability.
    "Community services" means any type of counseling and advice, emergency assistance, medical care, recreational facilities, housing facilities, or economic development assistance to individuals, groups, or neighborhood organizations in an economically disadvantaged area.
    "Crime prevention" means any activity which aids in the reduction of crime in an economically disadvantaged area.
    "Economically disadvantaged area" means an enterprise zone, or any area in Indiana that is certified as an economically disadvantaged area

by the department of commerce after consultation with the community services agency. The certification shall be made on the basis of current indices of social and economic conditions, which shall include but not be limited to the median per capita income of the area in relation to the median per capita income of the state or standard metropolitan statistical area in which the area is located.
    "Education" means any type of scholastic instruction or scholarship assistance to an individual who resides in an economically disadvantaged area that enables him to prepare himself for better life opportunities.
    "Enterprise zone" means an enterprise zone created under IC 4-4-6.1.
    "Job training" means any type of instruction to an individual who resides in an economically disadvantaged area that enables him to acquire vocational skills so that he can become employable or be able to seek a higher grade of employment.
    "Neighborhood assistance" means either:
        (1) furnishing financial assistance, labor, material, and technical advice to aid in the physical or economic improvement of any part or all of an economically disadvantaged area; or
        (2) furnishing technical advice to promote higher employment in any neighborhood in Indiana.
    "Neighborhood organization" means any organization, including but not limited to a nonprofit development corporation:
        (1) performing community services in an economically disadvantaged area; and
        (2) holding a ruling:
            (A) from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code; and
            (B) from the department of state revenue that the organization is exempt from income taxation under IC 6-2.1-3-20.
    "Person" means any individual subject to Indiana gross or adjusted gross income tax.
    "State fiscal year" means a twelve (12) month period beginning on July 1 and ending on June 30.
     "State tax liability" means the taxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
        (2) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under

IC 6-3.1-1-2, are to be applied before the credit provided by this chapter.
    "Tax credit" means a deduction from any tax otherwise due and payable under IC 6-2.1, IC 6-3 or IC 6-5.5.

SOURCE: IC 6-3.1-9-3; (02)IN1003.1.81. -->     SECTION 81. IC 6-3.1-9-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) Subject to the limitations provided in subsection (b) and sections 4, 5, and 6 of this chapter, the department shall grant a tax credit against any gross, adjusted gross or supplemental net income state tax liability due equal to fifty percent (50%) of the amount invested by a business firm or person in a program the proposal for which was approved under section 2 of this chapter.
    (b) The credit provided by this chapter shall only be applied against any income state tax liability owed by the taxpayer after the application of any credits, which under IC 6-3.1-1-2 must be applied before the credit provided by this chapter. In addition, the tax credit which a taxpayer receives under this chapter may not exceed twenty-five thousand dollars ($25,000) for any taxable year of the taxpayer.
    (c) If a business firm that is:
        (1) exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7) under IC 6-3-2-2.8(2); or
        (2) a partnership;
does not have any tax liability against which the credit provided by this section may be applied, a shareholder or a partner of the business firm is entitled to a credit against the shareholder's or the partner's liability under the adjusted gross income tax.
    (d) The amount of the credit provided by this section is equal to:
        (1) the tax credit determined for the business firm for the taxable year under subsection (a); multiplied by
        (2) the percentage of the business firm's distributive income to which the shareholder or the partner is entitled.
The credit provided by this section is in addition to any credit to which a shareholder or partner is otherwise entitled under this chapter. However, a business firm and a shareholder or partner of that business firm may not claim a credit under this chapter for the same investment.
SOURCE: IC 6-3.1-11-12; (02)IN1003.1.82. -->     SECTION 82. IC 6-3.1-11-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 27-1-18-2 (the insurance premiums tax); and
        (7) (3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under IC 6-3.1-1-2, are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-11-19; (02)IN1003.1.83. -->     SECTION 83. IC 6-3.1-11-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 19. The board shall consider the following factors in evaluating applications filed under this chapter:
        (1) The level of distress in the surrounding community caused by the loss of jobs at the vacant industrial facility.
        (2) The desirability of the intended use of the vacant industrial facility under the plan proposed by the municipality or county and the likelihood that the implementation of the plan will improve the economic and employment conditions in the surrounding community.
        (3) Evidence of support for the designation by residents, businesses, and private organizations in the surrounding community.
        (4) Evidence of a commitment by private or governmental entities to provide financial assistance in implementing the plan proposed by the municipality or county, including the application of IC 36-7-12, IC 36-7-13, IC 36-7-14, or IC 36-7-15.1 to assist in the financing of improvements or redevelopment activities benefiting the vacant industrial facility.
        (5) Evidence of efforts by the municipality or county to implement the proposed plan without additional financial assistance from the state.
        (6) Whether the industrial recovery site is within an economic revitalization area designated under IC 6-1.1-12.1.
        (7) Whether action has been taken by the metropolitan development commission or the legislative body of the municipality or county having jurisdiction over the proposed industrial recovery site to make the property tax credit under IC 6-1.1-20.7 available to persons owning inventory located within the industrial recovery site and meeting the other conditions established by IC 6-1.1-20.7.
SOURCE: IC 6-3.1-11-22; (02)IN1003.1.84. -->     SECTION 84. IC 6-3.1-11-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 22. (a) A credit to which a taxpayer is entitled under this chapter shall be applied

against taxes owed by the taxpayer in the following order:
        (1) Against the taxpayer's gross income tax liability (IC 6-2.1) for the taxable year.
        (2) Against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.
        (3) Against the taxpayer's supplemental net income tax liability (IC 6-3-8) for the taxable year.
        (4) Against the taxpayer's bank tax liability (IC 6-5-10) or savings and loan association tax liability (IC 6-5-11) for the taxable year.
        (5) (2) Against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) for the taxable year.
        (6) (3) Against the taxpayer's financial institutions tax (IC 6-5.5) for the taxable year.
    (b) Whenever the tax paid by the taxpayer under any of the tax provisions listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.

SOURCE: IC 6-3.1-11.5-14; (02)IN1003.1.85. -->     SECTION 85. IC 6-3.1-11.5-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. As used in this chapter, "state tax liability" means the taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 27-1-18-2 (the insurance premiums tax); and
        (7) (3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under IC 6-3.1-1-2, are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-11.5-24; (02)IN1003.1.86. -->     SECTION 86. IC 6-3.1-11.5-24 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 24. (a) A credit to which a taxpayer is entitled under this chapter shall be applied against taxes owed by the taxpayer in the following order:
        (1) Against the taxpayer's gross income tax liability (IC 6-2.1) for the taxable year.
        (2) Against the taxpayer's adjusted gross income tax liability (IC 6-3-1 through IC 6-3-7) for the taxable year.
        (3) Against the taxpayer's supplemental net income tax liability (IC 6-3-8) for the taxable year.
        (4) Against the taxpayer's bank tax liability (IC 6-5-10) or savings and loan association tax liability (IC 6-5-11) for the taxable year.
        (5) (2) Against the taxpayer's insurance premiums tax liability (IC 27-1-18-2) for the taxable year.
        (6) (3) Against the taxpayer's financial institutions tax (IC 6-5.5) for the taxable year.
    (b) Whenever the tax paid by the taxpayer under any of the tax provisions listed in subsection (a) is a credit against the liability or a deduction in determining the tax base under another Indiana tax provision, the credit or deduction shall be computed without regard to the credit to which a taxpayer is entitled under this chapter.
SOURCE: IC 6-3.1-13-9; (02)IN1003.1.87. -->     SECTION 87. IC 6-3.1-13-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 27-1-18-2 (the insurance premiums tax); and
        (7) (3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-13.5-4; (02)IN1003.1.88. -->     SECTION 88. IC 6-3.1-13.5-4, AS ADDED BY P.L.291-2001, SECTION 177, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 27-1-18-2 (the insurance premiums tax); and
        (7) (3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-15-5; (02)IN1003.1.89. -->     SECTION 89. IC 6-3.1-15-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 6-5.5 (the financial institutions tax); and
        (7) (3) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-16-6; (02)IN1003.1.90. -->     SECTION 90. IC 6-3.1-16-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under
        (1) IC 6-2.1 (the gross income tax);
        (2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax) and
        (3) IC 6-3-8 (the supplemental net income tax);
as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-16-13; (02)IN1003.1.91. -->     SECTION 91. IC 6-3.1-16-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 13. (a) If the credit provided by this chapter exceeds a taxpayer's state tax liability for the taxable year for which the credit is first claimed, the excess may be carried over to succeeding taxable years and used as a credit against the tax otherwise due and payable by the taxpayer under IC 6-2.1 or IC 6-3 during those taxable years. Each time that the credit is carried over to a succeeding taxable year, the credit is to be reduced by the amount that was used as a credit during the immediately preceding taxable year. The credit provided by this chapter may be carried forward and applied to succeeding taxable years for fifteen (15) taxable years following the unused credit year.
    (b) A credit earned by a taxpayer in a particular taxable year shall be applied against the taxpayer's tax liability for that taxable year before any credit carryover is applied against that liability under subsection (a).
    (c) A taxpayer is not entitled to any carryback or refund of any unused credit.
SOURCE: IC 6-3.1-17-3; (02)IN1003.1.92. -->     SECTION 92. IC 6-3.1-17-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) IC 6-5-10 (the bank tax);
        (5) IC 6-5-11 (the savings and loan association tax);
        (6) (2) IC 27-1-18-2 (the insurance premiums tax);
        (7) (3) IC 6-5.5 (the financial institutions tax); and
        (8) (4) IC 6-2.5 (state gross retail and use tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-18-5; (02)IN1003.1.93. -->     SECTION 93. IC 6-3.1-18-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); and
        (3) IC 6-3-8 (the supplemental corporate net income tax); and
        (4) (2) IC 6-5.5 (the financial institutions tax);
as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-18-6; (02)IN1003.1.94. -->     SECTION 94. IC 6-3.1-18-6, AS AMENDED BY P.L.4-1999, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) Subject to the limitations provided in subsection (b) and sections 7, 8, 9, 10, and 11 of this chapter, the department shall grant a tax credit against any gross, adjusted gross or supplemental net income state tax liability due equal to fifty percent (50%) of the amount contributed by a person or an individual to a fund if the contribution is not less than one hundred dollars ($100) and not more than fifty thousand dollars ($50,000).
    (b) The credit provided by this chapter shall only be applied against any income state tax liability owed by the taxpayer after the application of any credits that under IC 6-3.1-1-2 must be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-19-1; (02)IN1003.1.95. -->     SECTION 95. IC 6-3.1-19-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter, "state and local tax liability" means a taxpayer's total tax liability incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (3) IC 6-3-8 (the supplemental net income tax);
        (4) (2) IC 6-3.5-1.1 (county adjusted gross income tax);
        (5) (3) IC 6-3.5-6 (county option income tax);
        (6) (4) IC 6-3.5-7 (county economic development income tax);
        (7) IC 6-5-10 (the bank tax);
        (8) IC 6-5-11 (the savings and loan association tax);
        (9) (5) IC 6-5.5 (the financial institutions tax); and
        (10) (6) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of all credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-21-5; (02)IN1003.1.96. -->     SECTION 96. IC 6-3.1-21-5, AS ADDED BY P.L.273-1999, SECTION 227, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. An individual who, in a year, has:
        (1) at least one (1) qualifying child;
        (2) Indiana total income from all sources of not more than twelve eighteen thousand dollars ($12,000); ($18,000); and
        (3) Indiana total income from earned income that is at least eighty percent (80%) of the individual's Indiana total income;
is entitled to a credit against the taxpayer's adjusted gross income tax liability for the taxable year in the amount determined in section 6 of this chapter.
SOURCE: IC 6-3.1-21-6; (02)IN1003.1.97. -->     SECTION 97. IC 6-3.1-21-6, AS ADDED BY P.L.273-1999, SECTION 227, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. The credit authorized under section 5 of this chapter is equal to three and four-tenths nine-tenths percent (3.4%) (3.9%) of:
        (1) twelve eighteen thousand dollars ($12,000); ($18,000); minus
        (2) the amount of the individual's Indiana total income.
If the credit amount exceeds the taxpayer's adjusted gross income tax liability for the taxable year, the excess shall be refunded to the taxpayer.
SOURCE: IC 6-3.1-22.2-3; (02)IN1003.1.98. -->     SECTION 98. IC 6-3.1-22.2-3, AS ADDED BY P.L.291-2001, SECTION 149, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-2.5 (state gross retail and use tax);
        (3) (2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (4) IC 6-3-8 (the supplemental corporate net income tax);
        (5) IC 6-5-10 (the bank tax);
        (6) IC 6-5-11 (the savings and loan association tax);
        (7) (3) IC 6-5.5 (the financial institutions tax); and
        (8) (4) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2

are to be applied before the credit provided by this chapter.

SOURCE: IC 6-3.1-23-4; (02)IN1003.1.99. -->     SECTION 99. IC 6-3.1-23-4, AS ADDED BY P.L.109-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. As used in this chapter, "state tax liability" means a taxpayer's total tax liability incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-2.5 (the state gross retail and use tax);
        (3) (2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
        (4) IC 6-3-8 (the supplemental net income tax);
        (5) IC 6-5-10 (the bank tax);
        (6) IC 6-5-11 (the savings and loan association tax);
        (7) (3) IC 6-5.5 (the financial institutions tax); and
        (8) (4) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-23.8-4; (02)IN1003.1.100. -->     SECTION 100. IC 6-3.1-23.8-4, AS ADDED BY P.L.291-2001, SECTION 122, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-2.1 (gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax);
        (3) IC 6-3-8 (supplemental net income tax);
        (4) (2) IC 6-5.5 (financial institutions tax); and
        (5) (3) IC 27-1-18-2 (insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
SOURCE: IC 6-3.1-23.8-6; (02)IN1003.1.101. -->     SECTION 101. IC 6-3.1-23.8-6, AS ADDED BY P.L.291-2001, SECTION 122, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) Except as provided in this chapter, a taxpayer is entitled to a credit against the taxpayer's state tax liability for a taxable year for the net ad valorem property taxes paid by the taxpayer in the taxable year on business personal property with an assessed value equal to the lesser of:
        (1) the assessed value of the person's business personal property; or
        (2) an assessed value of thirty-seven thousand five hundred dollars ($37,500).
A taxpayer is entitled to only one (1) credit under this chapter each taxable year.
    (b) An affiliated group that files a consolidated return under IC 6-2.1-5-5 IC 6-3-4-14 is entitled to only one (1) credit under this

chapter each taxable year on that consolidated return. A taxpayer that is a partnership, joint venture, or pool is entitled to only one (1) credit under this chapter each taxable year, regardless of the number of partners or participants in the organization.
    (c) A utility company is not entitled to claim the credit under this chapter.

SOURCE: IC 6-3.1-24; (02)IN1003.1.102. -->     SECTION 102. IC 6-3.1-24 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 24. Investment Tax Credit
    Sec. 1. As used in this chapter, "assessed value" means the assessed value determined under IC 6-1.1-3.
    Sec. 2. As used in this chapter, "business personal property" means tangible property (other than real property) that:
        (1) was first reported by the taxpayer on a personal property tax return filed for the assessment date of 2003 or a later year;
        (2) was never before used by the taxpayer for any purpose in Indiana;
        (3) was acquired in a bona fide, good faith transaction, negotiated at arm's length, between parties under separate ownership and control; and
        (4) is being held or used in connection with the production of income and is property for which depreciation is allowed for federal income tax purposes, with a useful life of at least three (3) years.
The term does not include inventory as defined in IC 6-1.1-3-11.
    Sec. 3. As used in this chapter, "net ad valorem property taxes" means the amount of property taxes paid by a taxpayer for a particular calendar year after the application of all property tax deductions and property tax credits.
    Sec. 4. As used in this chapter, "pass through entity" means:
        (1) a corporation that is exempt from the adjusted gross income tax under IC 6-3-2-2.8(2);
        (2) a partnership;
        (3) a trust;
        (4) a limited liability company; or
        (5) a limited liability partnership.
    Sec. 5. As used in this chapter, "state tax liability" means a taxpayer's total tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (adjusted gross income tax);
        (2) IC 6-5.5 (financial institutions tax); and
        (3) IC 27-1-18-2 (insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2 are to be applied before the credit provided by this chapter.
    Sec. 6. As used in this chapter, "taxpayer" means an individual or entity that has state tax liability.
    Sec. 7. (a) Except as provided in this chapter, a taxpayer that purchases business personal property is entitled to a credit against the taxpayer's state tax liability for a taxable year for the net ad valorem property taxes on that property paid by the taxpayer by the installment due date under IC 6-1.1-22-9 in the taxable year with respect to the first or second assessment date the property is subject to assessment under IC 6-1.1. The amount of the credit is determined as follows:
        (1) For a taxable year in which the property tax is paid with respect to the first assessment date the property is subject to assessment under IC 6-1.1, the credit is equal to twenty-five percent (25%) of the net ad valorem property taxes paid on the property in that taxable year.
        (2) For a taxable year in which the property tax is paid with respect to the second assessment date the property is subject to assessment under IC 6-1.1, the credit is equal to fifteen percent (15%) of the net ad valorem property taxes paid on the property in that year.
    (b) A taxpayer that receives a credit for a qualified investment under IC 6-3.1-13.5 is not entitled to a credit under this chapter for ad valorem property taxes paid on the property that constitutes the qualified investment.
    (c) A taxpayer that receives a credit for ad valorem property taxes under IC 6-3.1-22.2 is not entitled to a credit under this chapter for personal property with respect to which a credit was granted under IC 6-3.1-22.2.
    Sec. 8. If the amount of the credit determined under section 7 of this chapter for a taxpayer in a taxable year exceeds the taxpayer's state tax liability for that taxable year, the excess shall be refunded to the taxpayer.
    Sec. 9. If a pass through entity does not have state income tax liability against which the tax credit may be applied, a shareholder or partner of the pass through entity is entitled to a tax credit equal to:
        (1) the tax credit determined for the pass through entity for the taxable year; multiplied by
        (2) the percentage of the pass through entity's distributive

income to which the shareholder or partner is entitled.
    Sec. 10. (a) To receive the credit provided by this chapter, a taxpayer must claim the credit on the taxpayer's state tax return or returns in the manner prescribed by the department. The taxpayer shall submit to the department proof of payment of an ad valorem property tax and all information that the department determines is necessary for the calculation of the credit provided by this chapter.
    (b) If the department determines that property taxes for which a credit was granted under this chapter have been reduced, the department shall make an assessment against the taxpayer under IC 6-8.1 equal to the difference between:
        (1) the amount of the credit that was granted under this chapter; and
        (2) the amount of the credit that would have been granted under this chapter if the property tax reduction had been in effect at the time the credit was granted under this chapter.

SOURCE: IC 6-3.5-1.1-15; (02)IN1003.1.103. -->     SECTION 103. IC 6-3.5-1.1-15, AS AMENDED BY P.L.283-2001, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. (a) As used in this section, "attributed levy" of a civil taxing unit means the sum of:
        (1) the ad valorem property tax levy of the civil taxing unit that is currently being collected at the time the allocation is made; plus
        (2) the current ad valorem property tax levy of any special taxing district, authority, board, or other entity formed to discharge governmental services or functions on behalf of or ordinarily attributable to the civil taxing unit; plus
        (3) the amount of federal revenue sharing funds and certified shares that were used by the civil taxing unit (or any special taxing district, authority, board, or other entity formed to discharge governmental services or functions on behalf of or ordinarily attributable to the civil taxing unit) to reduce its ad valorem property tax levies below the limits imposed by IC 6-1.1-18.5; plus
        (4) in the case of a county, an amount equal to the sum of the following:
            (A) The property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund. plus
            (B) after December 31, 2002, the greater of zero (0) or the difference between:
                 (i) Ninety percent (90%) of the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average

assessed value growth quotient described in IC 12-16-14-3; minus
                (ii) the current uninsured parents program property tax levy imposed by the county.
            (C) The property taxes imposed by the county for the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund.
            (D) The property taxes imposed by the county in 2002 for the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed).
            (E) The property taxes imposed by the county in 2002 for the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed).
            (F) The property taxes imposed by the county in 2002 for the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.
    (b) The part of a county's certified distribution that is to be used as certified shares shall be allocated only among the county's civil taxing units. Each civil taxing unit of a county is entitled to receive a percentage of the certified shares to be distributed in the county equal to the ratio of its attributed levy to the total attributed levies of all civil taxing units of the county.
    (c) The local government tax control board established by IC 6-1.1-18.5-11 shall determine the attributed levies of civil taxing units that are entitled to receive certified shares during a calendar year. If the ad valorem property tax levy of any special taxing district, authority, board, or other entity is attributed to another civil taxing unit under subsection (b)(2), then the special taxing district, authority, board, or other entity shall not be treated as having an attributed levy of its own. The local government tax control board shall certify the attributed levy amounts to the appropriate county auditor. The county auditor shall then allocate the certified shares among the civil taxing units of the auditor's county.
    (d) Certified shares received by a civil taxing unit shall be treated as additional revenue for the purpose of fixing its budget for the calendar year during which the certified shares will be received. The certified shares may be allocated to or appropriated for any purpose, including property tax relief or a transfer of funds to another civil taxing unit whose levy was attributed to the civil taxing unit in the determination

of its attributed levy.

SOURCE: IC 6-3.5-2-4; (02)IN1003.1.104. -->     SECTION 104. IC 6-3.5-2-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. The following persons are exempt from the employment tax:
        (1) the United States;
        (2) an agency of the United States;
        (3) this state;
        (4) an agency of this state;
        (5) a political subdivision of this state; and
        (6) a taxpayer described in IC 6-2.1-3-19, IC 6-2.1-3-20, IC 6-2.1-3-21, and IC 6-2.1-3-22. IC 6-2.5-5-21(b)(1).
    However, employees of such persons are not exempt from the employment tax.
SOURCE: IC 6-3.5-6-17.6; (02)IN1003.1.105. -->     SECTION 105. IC 6-3.5-6-17.6, AS AMENDED BY P.L.283-2001, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17.6. (a) This section applies to a county containing a consolidated city.
    (b) On or before July 15 of each year, the budget agency shall make the following calculation:
        STEP ONE: Determine the cumulative balance in a county's account established under section 16 of this chapter as of the end of the current calendar year.
        STEP TWO: Divide the amount estimated under section 17(b) of this chapter before any adjustments are made under section 17(c) or 17(d) of this chapter by twelve (12).
        STEP THREE: Multiply the STEP TWO amount by three (3).
        STEP FOUR: Subtract the amount determined in STEP THREE from the amount determined in STEP ONE.
    (c) For 1995, the budget agency shall certify the STEP FOUR amount to the county auditor on or before July 15, 1994. Not later than January 31, 1995, the auditor of state shall distribute the STEP FOUR amount to the county auditor to be used to retire outstanding obligations for a qualified economic development tax project (as defined in IC 36-7-27-9).
    (d) After 1995, the STEP FOUR amount shall be distributed to the county auditor in January of the ensuing calendar year. The STEP FOUR amount shall be distributed by the county auditor to the civil taxing units within thirty (30) days after the county auditor receives the distribution. Each civil taxing unit's share equals the STEP FOUR amount multiplied by the quotient of:
        (1) the maximum permissible property tax levy under IC 6-1.1-18.5 for the civil taxing unit, plus, for a county, an amount equal to:
            (A) the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund; plus
            (B) after December 31, 2002, the greater of zero (0) or the difference between:
                (i) the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3; minus
                (ii) the current uninsured parents program property tax levy imposed by the county;              sum of the property taxes imposed by the county in 2002 for:
                (i) ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed);
                (ii) the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund;
                (iii) the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed);
                (iv) the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed); and
                (v) the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6;
divided by
        (2) the sum of the maximum permissible property tax levies under IC 6-1.1-18.5 for all civil taxing units of the county, plus an amount equal to:
            (A) the property taxes imposed by the county in 1999 for the county's welfare administration fund; plus
            (B) after December 31, 2002, the greater of zero (0) or the difference between:
                (i) the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3; minus
                (ii) the current uninsured parents program property tax levy imposed by the county.              sum of the property taxes imposed by the county in 2002 for:
                (i) ninety percent (90%) of the county's contributions to the hospital care for the indigent program under

IC 12-16-14 (repealed);
                (ii) the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund;
                (iii) the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed);
                (iv) the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed); and
                (v) the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.

SOURCE: IC 6-3.5-6-18; (02)IN1003.1.106. -->     SECTION 106. IC 6-3.5-6-18, AS AMENDED BY P.L.283-2001, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 18. (a) The revenue a county auditor receives under this chapter shall be used to:
        (1) replace the amount, if any, of property tax revenue lost due to the allowance of an increased homestead credit within the county;
        (2) fund the operation of a public communications system and computer facilities district as provided in an election, if any, made by the county fiscal body under IC 36-8-15-19(b);
        (3) fund the operation of a public transportation corporation as provided in an election, if any, made by the county fiscal body under IC 36-9-4-42;
        (4) make payments permitted under IC 36-7-15.1-17.5;
        (5) make payments permitted under subsection (i); and
        (6) make distributions of distributive shares to the civil taxing units of a county.
    (b) The county auditor shall retain from the payments of the county's certified distribution, an amount equal to the revenue lost, if any, due to the increase of the homestead credit within the county. This money shall be distributed to the civil taxing units and school corporations of the county as though they were property tax collections and in such a manner that no civil taxing unit or school corporation shall suffer a net revenue loss due to the allowance of an increased homestead credit.
    (c) The county auditor shall retain the amount, if any, specified by the county fiscal body for a particular calendar year under subsection (i), IC 36-7-15.1-17.5, IC 36-8-15-19(b), and IC 36-9-4-42 from the county's certified distribution for that same calendar year. The county auditor shall distribute amounts retained under this subsection to the county.
    (d) All certified distribution revenues that are not retained and distributed under subsections (b) and (c) shall be distributed to the civil taxing units of the county as distributive shares.
    (e) The amount of distributive shares that each civil taxing unit in a county is entitled to receive during a month equals the product of the following:
        (1) The amount of revenue that is to be distributed as distributive shares during that month; multiplied by
        (2) A fraction determined as follows:
             (A) The numerator of the fraction equals the total property taxes that are first due and payable to the civil taxing unit during the calendar year in which the month falls; plus for a county, an amount equal to         the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund; and after December 31, 2002, the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county. sum of the property taxes imposed by the county in 2002 for:
                (i) ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed);
                (ii) the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund;
                (iii) the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed);
                (iv) the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed); and
                (v) the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.
             (B) The denominator of the fraction equals the sum of the total property taxes that are first due and payable to all civil taxing units of the county during the calendar year in which the month falls, plus an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund, and after December 31, 2002, the greater of

zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county. sum of the property taxes imposed by the county in 2002 for:
                (i) ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed);
                (ii) the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund;
                (iii) the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed);
                (iv) the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed); and
                (v) the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.

    (f) The state board of tax commissioners shall provide each county auditor with the fractional amount of distributive shares that each civil taxing unit in the auditor's county is entitled to receive monthly under this section.
    (g) Notwithstanding subsection (e), if a civil taxing unit of an adopting county does not impose a property tax levy that is first due and payable in a calendar year in which distributive shares are being distributed under this section, that civil taxing unit is entitled to receive a part of the revenue to be distributed as distributive shares under this section within the county. The fractional amount such a civil taxing unit is entitled to receive each month during that calendar year equals the product of the following:
        (1) The amount to be distributed as distributive shares during that month; multiplied by
        (2) A fraction. The numerator of the fraction equals the budget of that civil taxing unit for that calendar year. The denominator of the fraction equals the aggregate budgets of all civil taxing units of that county for that calendar year.
    (h) If for a calendar year a civil taxing unit is allocated a part of a county's distributive shares by subsection (g), then the formula used in

subsection (e) to determine all other civil taxing units' distributive shares shall be changed each month for that same year by reducing the amount to be distributed as distributive shares under subsection (e) by the amount of distributive shares allocated under subsection (g) for that same month. The state board of tax commissioners shall make any adjustments required by this subsection and provide them to the appropriate county auditors.
    (i) Notwithstanding any other law, a county fiscal body may pledge revenues received under this chapter to the payment of bonds or lease rentals to finance a qualified economic development tax project under IC 36-7-27 in that county or in any other county if the county fiscal body determines that the project will promote significant opportunities for the gainful employment or retention of employment of the county's residents.

SOURCE: IC 6-3.5-6-18.5; (02)IN1003.1.107. -->     SECTION 107. IC 6-3.5-6-18.5, AS AMENDED BY P.L.283-2001, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 18.5. (a) This section applies to a county containing a consolidated city.
    (b) Notwithstanding section 18(e) of this chapter, the distributive shares that each civil taxing unit in a county containing a consolidated city is entitled to receive during a month equals the following:
        (1) For the calendar year beginning January 1, 1995, calculate the total amount of revenues that are to be distributed as distributive shares during that month multiplied by the following factor:
    Center Township    .0251
    Decatur Township    .00217
    Franklin Township    .0023
    Lawrence Township    .01177
    Perry Township    .01130
    Pike Township    .01865
    Warren Township    .01359
    Washington Township    .01346
    Wayne Township    .01307
    Lawrence-City    .00858
    Beech Grove    .00845
    Southport    .00025
    Speedway    .00722
    Indianapolis/Marion County    .86409
        (2) Notwithstanding subdivision (1), for the calendar year beginning January 1, 1995, the distributive shares for each civil taxing unit in a county containing a consolidated city shall be not less than the following:
    Center Township    $1,898,145
    Decatur Township    $164,103
    Franklin Township    $173,934
    Lawrence Township    $890,086
    Perry Township    $854,544
    Pike Township    $1,410,375
    Warren Township    $1,027,721
    Washington Township    $1,017,890
    Wayne Township    $988,397
    Lawrence-City    $648,848
    Beech Grove    $639,017
    Southport    $18,906
    Speedway    $546,000
        (3) For each year after 1995, calculate the total amount of revenues that are to be distributed as distributive shares during that month as follows:
            STEP ONE: Determine the total amount of revenues that were distributed as distributive shares during that month in calendar year 1995.
            STEP TWO: Determine the total amount of revenue that the department has certified as distributive shares for that month under section 17 of this chapter for the calendar year.
            STEP THREE: Subtract the STEP ONE result from the STEP TWO result.
            STEP FOUR: If the STEP THREE result is less than or equal to zero (0), multiply the STEP TWO result by the ratio established under subdivision (1).
            STEP FIVE: Determine the ratio of:
                (A) the maximum permissible property tax levy under IC 6-1.1-18.5 and IC 6-1.1-18.6 for each civil taxing unit for the calendar year in which the month falls, plus, for a county
                 an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund;                 and after December 31, 2002, the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county; sum of the property taxes imposed by the county in 2002 for ninety percent (90%) of the county's contributions to the hospital care for the

indigent program under IC 12-16-14 (repealed),     the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), and the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6; divided by
                (B) the sum of the maximum permissible property tax levies under IC 6-1.1-18.5 and IC 6-1.1-18.6 for all civil taxing units of the county during the calendar year in which the month falls, and an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund                 and after December 31, 2002, the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county. sum of the property taxes imposed by the county in 2002 for ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed), the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), and the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.
            STEP SIX: If the STEP THREE result is greater than zero (0), the STEP ONE amount shall be distributed by multiplying the STEP ONE amount by the ratio established under subdivision (1).
            STEP SEVEN: For each taxing unit determine the STEP FIVE

ratio multiplied by the STEP TWO amount.
            STEP EIGHT: For each civil taxing unit determine the difference between the STEP SEVEN amount minus the product of the STEP ONE amount multiplied by the ratio established under subdivision (1). The STEP THREE excess shall be distributed as provided in STEP NINE only to the civil taxing units that have a STEP EIGHT difference greater than or equal to zero (0).
            STEP NINE: For the civil taxing units qualifying for a distribution under STEP EIGHT, each civil taxing unit's share equals the STEP THREE excess multiplied by the ratio of:
                (A) the maximum permissible property tax levy under IC 6-1.1-18.5 and IC 6-1.1-18.6 for the qualifying civil taxing unit during the calendar year in which the month falls, plus, for a county                 an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and after December 31, 2002, the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county; sum of the property taxes imposed by the county in 2002 for ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed), the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), and the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6; divided by
                (B) the sum of the maximum permissible property tax levies under IC 6-1.1-18.5 and IC 6-1.1-18.6 for all qualifying civil taxing units of the county during the calendar year in which the month falls, and an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund and after December 31,

2002, the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county. sum of the property taxes imposed by the county in 2002 for ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed), the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), and the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.

SOURCE: IC 6-3.5-7-12; (02)IN1003.1.108. -->     SECTION 108. IC 6-3.5-7-12, AS AMENDED BY P.L.283-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. (a) Except as provided in section 23 of this chapter, the county auditor shall distribute in the manner specified in this section the certified distribution to the county.
    (b) Except as provided in subsections (c) and (h) and section 15 of this chapter, the amount of the certified distribution that the county and each city or town in a county is entitled to receive during May and November of each year equals the product of the following:
        (1) The amount of the certified distribution for that month; multiplied by
        (2) A fraction. The numerator of the fraction equals the sum of the following:
            (A) Total property taxes that are first due and payable to the county, city, or town during the calendar year in which the month falls; plus
            (B) For a county, an amount equal to:
                (i) the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund; plus
                (ii) after December 31, 2002, the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted

each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county. sum of the property taxes imposed by the county in 2002 for ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed), the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), and the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.
        The denominator of the fraction equals the sum of the total property taxes that are first due and payable to the county and all cities and towns of the county during the calendar year in which the month falls, plus an amount equal to the property taxes imposed by the county in 1999 for the county's welfare fund and welfare administration fund, and after December 31, 2002, the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county. sum of the property taxes imposed by the county in 2002 for ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed), the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), and the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6.
    (c) This subsection applies to a county council or county income tax

council that imposes a tax under this chapter after June 1, 1992. The body imposing the tax may adopt an ordinance before July 1 of a year to provide for the distribution of certified distributions under this subsection instead of a distribution under subsection (b). The following apply if an ordinance is adopted under this subsection:
        (1) The ordinance is effective January 1 of the following year.
        (2) The amount of the certified distribution that the county and each city and town in the county is entitled to receive during May and November of each year equals the product of:
            (A) the amount of the certified distribution for the month; multiplied by
            (B) a fraction. For a city or town, the numerator of the fraction equals the population of the city or the town. For a county, the numerator of the fraction equals the population of the part of the county that is not located in a city or town. The denominator of the fraction equals the sum of the population of all cities and towns located in the county and the population of the part of the county that is not located in a city or town.
        (3) The ordinance may be made irrevocable for the duration of specified lease rental or debt service payments.
    (d) The body imposing the tax may not adopt an ordinance under subsection (c) if, before the adoption of the proposed ordinance, any of the following have pledged the county economic development income tax for any purpose permitted by IC 5-1-14 or any other statute:
        (1) The county.
        (2) A city or town in the county.
        (3) A commission, a board, a department, or an authority that is authorized by statute to pledge the county economic development income tax.
    (e) The state board of tax commissioners shall provide each county auditor with the fractional amount of the certified distribution that the county and each city or town in the county is entitled to receive under this section.
    (f) Money received by a county, city, or town under this section shall be deposited in the unit's economic development income tax fund.
    (g) Except as provided in subsection (b)(2)(B), in determining the fractional amount of the certified distribution the county and its cities and towns are entitled to receive under subsection (b) during a calendar year, the state board of tax commissioners shall consider only property taxes imposed on tangible property subject to assessment in that county.
    (h) In a county having a consolidated city, only the consolidated city

is entitled to the certified distribution, subject to the requirements of section 15 of this chapter.

SOURCE: IC 6-3.5-7-23; (02)IN1003.1.109. -->     SECTION 109. IC 6-3.5-7-23, AS ADDED BY P.L.124-1999, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 23. (a) This section applies only to a county having a population of at least forty-five thousand (45,000) but not more than forty-seven thousand (47,000).
    (b) The county council may by ordinance determine that, in order to promote the development of libraries in the county and thereby encourage economic development, it is necessary to use economic development income tax revenue to replace library property taxes in the county. However, a county council may adopt an ordinance under this subsection only if all territory in the county is included in a library district.
    (c) If the county council makes a determination under subsection (b), the county council may designate the county economic development income tax revenue generated by the tax rate adopted under section 5 of this chapter, or revenue generated by a portion of the tax rate, as revenue that will be used to replace public library property taxes imposed by public libraries in the county. The county council may not designate for library property tax replacement purposes any county economic development income tax revenue that is generated by a tax rate of more than fifteen-hundredths percent (0.15%).
    (d) The county treasurer shall establish a library property tax replacement fund to be used only for the purposes described in this section. County economic development income tax revenues derived from the portion of the tax rate designated for property tax replacement credits under subsection (c) shall be deposited in the library property tax replacement fund before certified distributions are made under section 12 of this chapter.
    (e) The amount of county economic development income tax revenue dedicated to providing library property tax replacement credits shall, in the manner prescribed in this section, be allocated to public libraries operating in the county and shall be used by those public libraries as property tax replacement credits. The amount of property tax replacement credits that each public library in the county is entitled to receive during a calendar year under this section equals the lesser of:
        (1) the product of:
            (A) the amount of revenue deposited by the county auditor in the library property tax replacement fund; multiplied by
            (B) a fraction described as follows:
                (i) The numerator of the fraction equals the sum of the total

property taxes that would have been collected by the public library during the previous calendar year from taxpayers located within the library district if the property tax replacement under this section had not been in effect.
                (ii) The denominator of the fraction equals the sum of the total property taxes that would have been collected during the previous year from taxpayers located within the county by all public libraries that are eligible to receive property tax replacement credits under this section if the property tax replacement under this section had not been in effect; or
        (2) the total property taxes that would otherwise be collected by the public library for the calendar year if the property tax replacement credit under this section were not in effect.
The state board of tax commissioners department of local government finance shall make any adjustments necessary to account for the expansion of a library district. However, a public library is eligible to receive property tax replacement credits under this section only if it has entered into reciprocal borrowing agreements with all other public libraries in the county. If the total amount of county economic development income tax revenue deposited by the county auditor in the library property tax replacement fund for a calendar year exceeds the total property tax liability that would otherwise be imposed for public libraries in the county for the year, the excess shall remain in the library property tax replacement fund and shall be used for library property tax replacement purposes in the following calendar year.
    (f) Notwithstanding subsection (e), if a public library did not impose a property tax levy during the previous calendar year, that public library is entitled to receive a part of the property tax replacement credits to be distributed for the calendar year. The amount of property tax replacement credits the public library is entitled to receive during the calendar year equals the product of:
        (1) the amount of revenue deposited in the library property tax replacement fund; multiplied by
        (2) a fraction. The numerator of the fraction equals the budget of the public library for that calendar year. The denominator of the fraction equals the aggregate budgets of public libraries in the county for that calendar year.
If for a calendar year a public library is allocated a part of the property tax replacement credits under this subsection, then the amount of property tax credits distributed to other public libraries in the county for the calendar year shall be reduced by the amount to be distributed

as property tax replacement credits under this subsection. The state board of tax commissioners department of local government finance shall make any adjustments required by this subsection and provide the adjustments to the county auditor.
    (g) The state board of tax commissioners department of local government finance shall inform the county auditor of the amount of property tax replacement credits that each public library in the county is entitled to receive under this section. The county auditor shall certify to each public library the amount of property tax replacement credits that the public library is entitled to receive during that calendar year. The county auditor shall also certify these amounts to the county treasurer.
    (h) A public library receiving property tax replacement credits under this section shall allocate the credits among each fund for which a distinct property tax levy is imposed. The amount that must be allocated to each fund equals:
        (1) the amount of property tax replacement credits provided to the public library under this section; multiplied by
        (2) the amount determined in STEP THREE of the following formula:
            STEP ONE: Determine the property taxes that would have been collected for each fund by the public library during the previous calendar year if the property tax replacement under this section had not been in effect.
            STEP TWO: Determine the sum of the total property taxes that would have been collected for all funds by the public library during the previous calendar year if the property tax replacement under this section had not been in effect.
            STEP THREE: Divide the STEP ONE amount by the STEP TWO amount.
However, if a public library did not impose a property tax levy during the previous calendar year or did not impose a property tax levy for a particular fund during the previous calendar year, but the public library is imposing a property tax levy in the current calendar year or is imposing a property tax levy for the particular fund in the current calendar year, the state board of tax commissioners department of local government finance shall adjust the amount of property tax replacement credits allocated among the various funds of the public library and shall provide the adjustment to the county auditor. If a public library receiving property tax replacement credits under this section does not impose a property tax levy for a particular fund that is first due and payable in a calendar year in which the property tax

replacement credits are being distributed, the public library is not required to allocate to that fund a part of the property tax replacement credits to be distributed to the public library.
    (i) For each public library that receives property tax credits under this section, the state board of tax commissioners department of local government finance shall certify to the county auditor the property tax rate applicable to each fund after the property tax replacement credits are allocated.
    (j) A public library shall treat property tax replacement credits received during a particular calendar year under this section as a part of the public library's property tax levy for each fund for that same calendar year for purposes of fixing the public library's budget and for purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
    (k) The property tax replacement credits that are received under this section do not reduce the total county tax levy that is used to compute the state property tax replacement credit shall be applied after applying the credit allowed under IC 6-1.1-21. IC 6-1.1-21.3. For the purpose of computing and distributing certified distributions under IC 6-3.5-1.1 and tax revenue under IC 6-5-10, IC 6-5-11, IC 6-5-12, IC 6-5.5 or IC 6-6-5, the property tax replacement credits that are received under this section shall be treated as though they were property taxes that were due and payable during that same calendar year.

SOURCE: IC 6-3.5-8-12; (02)IN1003.1.110. -->     SECTION 110. IC 6-3.5-8-12, AS ADDED BY P.L.151-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. (a) If the fiscal body of a municipality in a qualifying county adopts an ordinance under section 11(a) of this chapter, the state board of tax commissioners may not certify a budget for the municipality under IC 6-1.1-17-16(f) for the 2002 calendar year that is greater than ninety-seven percent (97%) of the budget of the municipality certified by the state board for the 2001 calendar year. The state board of tax commissioners may not certify a budget for the municipality under IC 6-1.1-17-16(f) for any later calendar year that is greater than ninety-seven percent (97%) of the budget of the municipality certified by the state board for the calendar year that immediately precedes the later calendar year.
    (b) If the fiscal body of a municipality in a qualifying county adopts an ordinance in a calendar year under section 11(c) of this chapter, the state board of tax commissioners may not certify a budget for the municipality under IC 6-1.1-17-16(f) for the calendar year that immediately succeeds the calendar year in which the ordinance is adopted that is greater than ninety-seven percent (97%) of the budget

of the municipality certified by the state board for the calendar year in which the ordinance was adopted. The state board of tax commissioners may not certify a budget for the municipality under IC 6-1.1-17-16(f) for any later calendar year that is greater than ninety-seven percent (97%) of the budget of the municipality certified by the state board for the calendar year that immediately precedes the later calendar year.
    (c) Before July 1 of 2002 and of each year thereafter, the state board of tax commissioners shall review the budget approved for each municipality in a qualifying county in which a municipal option income tax is in effect to determine whether the restriction under subsection (a) or (b) has been applied. If the restriction has not been applied:
        (1) the municipal option income tax is rescinded as of July 1 of the year in which the review was made;
        (2) the municipality may not impose the municipal option income tax for any later year; and
        (3) the municipality is:
            (A) subject to subsection (d), if the municipality adopted the municipal option income tax in 2002; or
            (B) subject to subsection (e), if the municipality adopted the municipal option income tax in a year that succeeds 2002.
    (d) In May 2003, the department of state revenue shall determine for each municipality subject to this subsection the amount of tax revenue collected for the municipality after August 31, 2001, and before July 1, 2002. The department of state revenue shall immediately notify the municipality of the amount determined under this subsection. Not later than thirty (30) days after receiving notification from the department of state revenue, the municipality shall transfer the amount determined by the department under this subsection from the municipality's general fund to the county family and children's fund of the qualifying county in which the municipality is located.
    (e) In May 2004, and in May of each year thereafter, the department of state revenue shall determine for each municipality subject to this subsection the amount of tax revenue collected for the municipality after June 30 of the calendar year that precedes by two (2) years the calendar year in which the determination is made and before July 1 of the year that immediately precedes the calendar year in which the determination is made. The department of state revenue shall immediately notify the municipality of the amount determined under this subsection. Not later than thirty (30) days after receiving notification from the department of state revenue, the municipality shall transfer the amount determined by the department under this

subsection section from the municipality's general fund to the county family and children's fund of the qualifying county in which the municipality is located.
    (f) If a municipality makes a transfer from its general fund to the county's family and children's fund as described in subsection (d) or (e), the state board of tax commissioners shall reduce by the amount transferred the county's maximum family and children's fund levy under IC 6-1.1-18.6 for the calendar year that immediately succeeds the year in which the transfer is made.
    (g) (f) This subsection applies if the fiscal body of a municipality in a qualifying county adopts an ordinance under section 11 of this chapter to impose a municipal option income tax. The maximum permissible ad valorem property tax levy of the municipality is not subject to any increase under IC 6-1.1-18.5-3(a) or IC 6-1.1-18.5-3(b) for taxes payable in:
        (1) the calendar year that immediately succeeds the calendar year in which the ordinance is adopted; and
        (2) each succeeding calendar year in which the municipal option income tax remains in effect.
    (h) (g) This subsection applies if the fiscal body of a municipality in a qualifying county adopts an ordinance under section 14 of this chapter to rescind the municipal option income tax, or if the municipal option income tax in a municipality is rescinded by operation of law. For purposes of IC 6-1.1-18.5-3(a) STEP ONE or IC 6-1.1-18.5-3(b) STEP ONE, the preceding calendar year is considered to be the calendar year in which an ordinance was adopted under section 11 of this chapter to impose the municipal option income tax.

SOURCE: IC 6-5.5-8-2; (02)IN1003.1.111. -->     SECTION 111. IC 6-5.5-8-2, AS AMENDED BY P.L.273-1999, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) On or before February 1, May 1, August 1, and December 1 of each year the auditor of state shall transfer 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) of the sum of the guaranteed amounts 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.
     (b) For purposes of determining distributions under subsection (b), (c), the state board of tax commissioners department of local government finance shall determine a state welfare total levy miscellaneous tax allocation for each county calculated as follows:
        (1) For 2000 and each year thereafter, 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:
                (A) the amounts appropriated by the county in the year for the county's county welfare fund and county welfare administration fund; divided by
                (B) the amounts appropriated by all the taxing units in the county in the year;
            STEP TWO: Determine the sum of the results determined in STEP ONE.
            STEP THREE: Divide the STEP TWO result by three (3).
            STEP FOUR: Determine the amount that would otherwise be distributed to all the taxing units in the county under subsection (b) without regard to this subdivision.
            STEP FIVE: Determine the result of:
                (A) the STEP FOUR amount; multiplied by
                (B) the STEP THREE result.
        (2) provided in IC 6-1.1-44. The state welfare total levy miscellaneous tax allocation shall be deducted from the distributions otherwise payable under subsection (b) (c) to the taxing unit that is a county and shall be deposited in a special account within the state general fund.
    (b) (c) A taxing unit's guaranteed distribution for a year is the greater of zero (0) or an amount equal to:
        (1) the amount received by the taxing unit under IC 6-5-10 (repealed) and IC 6-5-11 (repealed) in 1989; minus
        (2) the amount to be received by the taxing unit in the year of the distribution, as determined by the state board of tax commissioners, department of local government finance, from property taxes 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; 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 state board of tax commissioners, 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.
    (c) (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 total county levy miscellaneous tax allocations under subsection (a),         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 (b)(2) (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.
    (d) (e) Except as provided in subsection (f), (g,) 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 and

IC 6-5-11 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 (c), STEP FOUR.
    (e) (f) 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.
    (f) (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) the amount the county would receive under subsection (d) without regard to this subsection; minus
        (2) an amount equal to:
            (A) the amount under subdivision (1); multiplied by
            (B) the result of the following:
                (I) (i) Determine the amounts appropriated by the county in 1997, 1998, and 1999, from the county's county welfare fund and county welfare administration fund, plus the sum of the amount of property taxes imposed by the county in 2000, 2001, and 2002 for ninety percent (90%) of the county's contributions to the hospital care for the indigent program under IC 12-16-14 (repealed), the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6, and fifty percent (50%) of the part of the tuition support levy (as defined in IC 21-3-1.7-5) levied in the county for each school corporation that is at least partially located in the county; divided by the total amounts appropriated by all the taxing units in the county in the year plus sum of the property taxes imposed by the county in 2002 for ninety percent (90%) of the county's contributions to the hospital care for the indigent

program under IC 12-16-14 (repealed), the county's family and children's fund (IC 12-19-7-3 (repealed)) in 2003 after the deduction of any amounts levied for the fund for the repayment of loans and bonds issued for the fund, the county's contributions to the medical assistance to wards program under IC 12-13-8 (repealed), the county's contribution to the children with special health care needs program under IC 16-35-3 (repealed), and the county's contribution to the court personnel and other operating expenses assumed by the state after 2002 under IC 33-1-18-6, and fifty percent (50%) of the part of the tuition support levy (as defined in IC 21-3-1.7-5) levied in the county for each school corporation that is at least partially located in the county.
                (ii) Divide the amount determined in item (I) (i) by three (3).

SOURCE: IC 6-5.5-9-3; (02)IN1003.1.112. -->     SECTION 112. IC 6-5.5-9-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. If the tax imposed by this article is held inapplicable or invalid with respect to a taxpayer, then notwithstanding the statute of limitations set forth in IC 6-8.1-5-2(a), the taxpayer is liable for the taxes imposed by IC 6-2.1 IC 6-3 and IC 6-5 for the taxable periods with respect to which the tax under this article is held inapplicable or invalid. In addition, personal property is exempt from assessment and property taxation under IC 6-1.1 if:
        (1) the personal property is owned by a financial institution;
        (2) the financial institution is subject to the bank tax imposed under IC 6-5-10; and
        (3) the property is not leased by the financial institution to a lessee under circumstances in which possession is transferred to the lessee.
SOURCE: IC 6-5.5-9-4; (02)IN1003.1.113. -->     SECTION 113. IC 6-5.5-9-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) A taxpayer who is subject to taxation under this article for a taxable year or part of a taxable year is not, for that taxable year or part of a taxable year, subject to
        (1) the gross income tax imposed by IC 6-2.1;
        (2) the income taxes imposed by IC 6-3. and
        (3) the bank, savings and loan, or production credit association tax imposed by IC 6-5.
    (b) The exemptions exemption provided for the taxes listed in subsection (a)(1) through (a)(2) do (a) does not apply to a taxpayer to the extent the taxpayer is acting in a fiduciary capacity.
SOURCE: IC 6-6-1.1-1204; (02)IN1003.1.114. -->     SECTION 114. IC 6-6-1.1-1204 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1204. (a) No city, town, county, township, or other subdivision or municipal corporation of the state may levy or collect:
        (1) an excise tax on or measured by the sale, receipt, distribution, or use of gasoline; or
        (2) an excise, privilege, or occupational tax on the business of manufacturing, selling, or distributing gasoline.
    (b) The provisions of subsection (a) may not be construed as to relieve a distributor or dealer from payment of the a state gross income tax or state store license.
SOURCE: IC 6-6-5-10; (02)IN1003.1.115. -->     SECTION 115. IC 6-6-5-10, AS AMENDED BY P.L.283-2001, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. (a) The bureau shall establish procedures necessary for the collection of the tax imposed by this chapter and for the proper accounting for the same. The necessary forms and records shall be subject to approval by the state board of accounts.
    (b) The county treasurer, upon receiving the excise tax collections, shall receipt such collections into a separate account for settlement thereof at the same time as property taxes are accounted for and settled in June and December of each year, with the right and duty of the treasurer and auditor to make advances prior to the time of final settlement of such property taxes in the same manner as provided in IC 5-13-6-3.
    (c) Except as provided in subsection (d), the county auditor shall determine the total amount of excise taxes collected for each taxing unit in the county and the amount so collected (and the distributions received under section 9.5 of this chapter) shall be apportioned and distributed among the respective funds of each taxing unit in the same manner and at the same time as property taxes are apportioned and distributed.
     (d) However, after December 31, 2002, an amount equal to the greater of zero (0) or the difference between the county hospital care for the indigent property tax levy imposed by the county in 2002, adjusted each year after 2002 by the statewide average assessed value growth quotient described in IC 12-16-14-3, minus the current uninsured parents program property tax levy imposed by the county, shall be treated as property taxes apportioned to the county unit. However, for purposes of determining distributions under this section for 2000 2003 and each year thereafter, the state welfare allocation for each county equals the greater of zero (0) or the amount determined under STEP FIVE of the following STEPS:
        STEP ONE: For:
             1997, 1998, and 1999, determine the result of:
                (i) the amounts appropriated by the county in the year from the county's county welfare fund and county welfare administration fund; divided by
                (ii) the total amounts appropriated by all the taxing units in the county in the year.
        STEP TWO: Determine the sum of the results determined in STEP ONE.
        STEP THREE: Divide the STEP TWO result by three (3).
        STEP FOUR: Determine the amount that would otherwise be distributed to all the taxing units in the county under this subsection without regard to this subdivision.
        STEP FIVE: Determine the result of:
            (i) the STEP FOUR amount; multiplied by
            (ii) the STEP THREE result.
The state welfare a total levy miscellaneous tax allocation as determined under IC 6-1.1-44 shall be deducted from the total amount available for apportionment and distribution to taxing units under this section before any apportionment and distribution is made. The county auditor shall remit the state welfare total levy miscellaneous tax allocation to the treasurer of state for deposit in a special account within the state general fund.
    (d) Such determination shall be made from copies of vehicle registration forms furnished by the bureau of motor vehicles. Prior to such determination, the county assessor of each county shall, from copies of registration forms, cause information pertaining to legal residence of persons owning taxable vehicles to be verified from the assessor's records, to the extent such verification can be so made. The assessor shall further identify and verify from the assessor's records the several taxing units within which such persons reside.
    (e) Such verifications shall be done by not later than thirty (30) days after receipt of vehicle registration forms by the county assessor, and the assessor shall certify such information to the county auditor for the auditor's use as soon as it is checked and completed.
SOURCE: IC 6-6-5.5-20; (02)IN1003.1.116. -->     SECTION 116. IC 6-6-5.5-20, AS ADDED BY P.L.181-1999, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 20. (a) On or before May 1, the auditor of state shall distribute to each county auditor an amount equal to fifty percent (50%) of the total base revenue to be distributed to all taxing units in the county for that year.
    (b) On or before December 1, the auditor of state shall distribute to

each county auditor an amount equal to the greater of the following:
        (1) Fifty percent (50%) of the total base revenue to be distributed to all taxing units in the county for that year.
        (2) The product of the county's distribution percentage multiplied by the total commercial vehicle excise tax revenue deposited in the commercial vehicle excise tax fund.
    (c) Upon receipt, the county auditor shall distribute to the taxing units an amount equal to the product of the taxing unit's distribution percentage multiplied by the total distributed to the county under this section. The amount determined shall be apportioned and distributed among the respective funds of each taxing unit in the same manner and at the same time as property taxes are apportioned and distributed. However, for purposes of determining distributions under this section for 2003 and each year thereafter, a total levy miscellaneous tax allocation as determined under IC 6-1.1-44 shall be deducted from the total amount available for apportionment and distribution to taxing units under this section before any apportionment and distribution is made. The county auditor shall remit the total levy miscellaneous tax allocation to the treasurer of state for deposit in a special account within the state general fund.
    (d) In the event that sufficient funds are not available in the commercial vehicle excise tax fund for the distributions required by subsection (a) and subsection (b)(1), the auditor of state shall transfer funds from the commercial vehicle excise tax reserve fund.
    (e) The auditor of state shall, not later than July 1 of each year, furnish to each county auditor an estimate of the amounts to be distributed to the counties under this section during the next calendar year. Before August 1, each county auditor shall furnish to the proper officer of each taxing unit of the county an estimate of the amounts to be distributed to the taxing units under this section during the next calendar year and the budget of each taxing unit shall show the estimated amounts to be received for each fund for which a property tax is proposed to be levied.

SOURCE: IC 6-6-6.5-21; (02)IN1003.1.117. -->     SECTION 117. IC 6-6-6.5-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21. (a) The department shall allocate each aircraft excise tax payment collected by it to the county in which the aircraft is usually located when not in operation or to the aircraft owner's county of residence if based out of state. The department shall distribute to each county treasurer on a quarterly basis the aircraft excise taxes which were collected by the department during the preceding three (3) months and which the department has allocated to that county. The distribution shall be made

on or before the fifteenth of the month following each quarter and the first distribution each year shall be made in April.
    (b) Concurrently with making a distribution of aircraft excise taxes, the department shall send an aircraft excise tax report to the county treasurer and the county auditor. The department shall prepare the report on the form prescribed by the state board of accounts. The aircraft excise tax report must include aircraft identification, owner information, and excise tax payment, and must indicate the county where the aircraft is normally kept when not in operation. The department shall, in the manner prescribed by the state board of accounts, maintain records concerning the aircraft excise taxes received and distributed by it.
    (c) Except as provided in section 21.5 of this chapter, each county treasurer shall deposit money received by him under this chapter in a separate fund to be known as the "aircraft excise tax fund". The money in the aircraft excise tax fund shall be distributed to the taxing units of the county in the manner prescribed in subsection (d).
    (d) In order to distribute the money in the county aircraft excise tax fund to the taxing units of the county, the county auditor shall first allocate the money in the fund among the taxing districts of the county. In making these allocations, the county auditor shall allocate to a taxing district the excise taxes collected with respect to aircraft usually located in the taxing district when not in operation. The money allocated to a taxing district shall be apportioned and distributed among the taxing units of that taxing district in the same manner and at the same time that the property taxes are apportioned and distributed. However, for purposes of determining distributions under this section for 2003 and each year thereafter, a total levy miscellaneous tax allocation shall be deducted from the total amount available for apportionment and distribution to taxing units under this section before any apportionment and distribution is made. The county auditor shall remit the total levy miscellaneous tax allocation to the treasurer of state for deposit in a special account within the state general fund.
    (e) Within thirty (30) days following the receipt of excise taxes from the department, the county treasurer shall file a report with the county auditor concerning the aircraft excise taxes collected by the county treasurer. The county treasurer shall file the report on the form prescribed by the state board of accounts. The county treasurer shall, in the manner and at the times prescribed in IC 6-1.1-27, make a settlement with the county auditor for the aircraft excise taxes collected by the county treasurer. The county treasurer shall, in the manner

prescribed by the state board of accounts, maintain records concerning the aircraft excise taxes received and distributed by him.

SOURCE: IC 6-6-9-11; (02)IN1003.1.118. -->     SECTION 118. IC 6-6-9-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) All revenues collected from the auto rental excise tax shall be deposited in a special account of the state general fund called the auto rental excise tax account.
    (b) On or before May 20 and November 20 of each year, all amounts held in the auto rental excise tax account shall be distributed to the county treasurers of Indiana.
    (c) The amount to be distributed to a county treasurer equals that part of the total auto rental excise taxes being distributed that were initially imposed and collected from within that treasurer's county. The department shall notify each county auditor of the amount of taxes to be distributed to the county treasurer. At the same time each distribution is made to a county treasurer, the department shall certify to the county auditor each taxing district within the county where auto rental excise taxes were collected and the amount of the county distribution that was collected with respect to each taxing district.
    (d) The county treasurer shall deposit auto rental excise tax collections into a separate account for settlement at the same time as property taxes are accounted for and settled in June and December of each year.
    (e) Except as provided in subsection (f), the county auditor shall apportion and the county treasurer shall distribute the auto rental excise taxes among the taxing units of the county in the same manner that property taxes are apportioned and distributed with respect to property located in the taxing district where the auto rental excise tax was initially imposed and collected. The auto rental excise taxes distributed to a taxing unit shall be allocated among the taxing unit's funds in the same proportions that the taxing unit's property tax collections are allocated among those funds.
    (f) However, for purposes of determining distributions under this section for 2003 and each year thereafter, a total levy miscellaneous tax allocation shall be deducted from the total amount available for apportionment and distribution to taxing units under this section before any apportionment and distribution is made. The county auditor shall remit the total levy miscellaneous tax allocation to the treasurer of state for deposit in a special account within the state general fund.
     (g) This subsection does not apply to a taxing unit that is a school corporation. Taxing units of a county may request and receive

advances of auto rental excise tax revenues in the manner provided under IC 5-13-6-3.
    (g) (h) All distributions from the auto rental excise tax account shall be made by warrants issued by the auditor of state to the treasurer of state ordering those payments to the appropriate county treasurer.

SOURCE: IC 6-6-11-31; (02)IN1003.1.119. -->     SECTION 119. IC 6-6-11-31 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 31. (a) A boat excise tax fund is established in each county. Each county treasurer shall deposit in the fund the taxes received under this chapter.
    (b) The excise tax money in the county boat excise tax fund shall be distributed to the taxing units of the county. The county auditor shall allocate the money in the fund among the taxing units of the county based on the tax situs of each boat. Except as provided in subsection (c), the money allocated to the taxing units shall be apportioned and distributed among the funds of the taxing units in the same manner and at the same time that property taxes are apportioned and distributed.
     (c) However, for purposes of determining distributions under this section for 2003 and each year thereafter, a total levy miscellaneous tax allocation shall be deducted from the total amount available for apportionment and distribution to taxing units under this section before any apportionment and distribution is made. The county auditor shall remit the total levy miscellaneous tax allocation to the treasurer of state for deposit in a special account within the state general fund.
SOURCE: IC 6-8.1-1-1; (02)IN1003.1.120. -->     SECTION 120. IC 6-8.1-1-1, AS AMENDED BY P.L.151-2001, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. "Listed taxes" or "taxes" includes only the pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the riverboat admissions tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the gross income tax (IC 6-2.1) (repealed); the franchise tax (IC 6-2.2); the state gross retail and use taxes (IC 6-2.5); the adjusted gross income tax (IC 6-3); the supplemental net income tax (IC 6-3-8) (repealed) ; the county adjusted gross income tax (IC 6-3.5-1.1); the county option income tax (IC 6-3.5-6); the county economic development income tax (IC 6-3.5-7); the municipal option income tax (IC 6-3.5-8); the auto rental excise tax (IC 6-6-9); the bank tax (IC 6-5-10); the savings and loan association tax (IC 6-5-11); the production credit association tax (IC 6-5-12); the financial institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the alternative fuel permit fee (IC 6-6-2.1); the special fuel tax (IC 6-6-2.5); the motor carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a reciprocal agreement under IC 6-8.1-3; the motor vehicle excise tax (IC 6-6-5);

the commercial vehicle excise tax (IC 6-6-5.5); the hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax (IC 6-7-1); the beer excise tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the petroleum severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the various county food and beverage taxes (IC 6-9); the county admissions tax (IC 6-9-13 and IC 6-9-28); the oil inspection fee (IC 16-44-2); the emergency and hazardous chemical inventory form fee (IC 6-6-10); the penalties assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the fees and penalties assessed for overweight vehicles (IC 9-20-4 and IC 9-30); the underground storage tank fee (IC 13-23); the solid waste management fee (IC 13-20-22); and any other tax or fee that the department is required to collect or administer.

SOURCE: IC 6-8.1-3-16; (02)IN1003.1.121. -->     SECTION 121. IC 6-8.1-3-16, AS AMENDED BY P.L.57-2000, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. (a) The department shall prepare a list of all outstanding tax warrants for listed taxes each month. The list shall identify each taxpayer liable for a warrant by name, address, amount of tax, and either Social Security number or employer identification number. Unless the department renews the warrant, the department shall exclude from the list a warrant issued more than ten (10) years before the date of the list. The department shall certify a copy of the list to the bureau of motor vehicles.
    (b) The department shall prescribe and furnish tax release forms for use by tax collecting officials. A tax collecting official who collects taxes in satisfaction of an outstanding warrant shall issue to the taxpayers named on the warrant a tax release stating that the tax has been paid. The department may also issue a tax release:
        (1) to a taxpayer who has made arrangements satisfactory to the department for the payment of the tax; or
        (2) by action of the commissioner under IC 6-8.1-8-2(k).
    (c) The department may not issue or renew:
        (1) a certificate under IC 6-2.5-8;
        (2) a license under IC 6-6-1.1 or IC 6-6-2.5; or
        (3) a permit under IC 6-6-4.1;
to a taxpayer whose name appears on the most recent monthly warrant list, unless that taxpayer pays the tax, makes arrangements satisfactory to the department for the payment of the tax, or a release is issued under IC 6-8.1-8-2(k).
    (d) The bureau of motor vehicles shall, before issuing the title to a motor vehicle under IC 9-17, determine whether the purchaser's or

assignee's name is on the most recent monthly warrant list. If the purchaser's or assignee's name is on the list, the bureau shall enter as a lien on the title the name of the state as the lienholder unless the bureau has received notice from the commissioner under IC 6-8.1-8-2(k). The tax lien on the title:
        (1) is subordinate to a perfected security interest (as defined and perfected in accordance with IC 26-1-9.1); and
        (2) shall otherwise be treated in the same manner as other title liens.
    (e) The commissioner is the custodian of all titles for which the state is the sole lienholder under this section. Upon receipt of the title by the department, the commissioner shall notify the owner of the department's receipt of the title.
    (f) The department shall reimburse the bureau of motor vehicles for all costs incurred in carrying out this section.
    (g) Notwithstanding IC 6-8.1-8, a person who is authorized to collect taxes, interest, or penalties on behalf of the department under IC 6-2.1, IC 6-3 or IC 6-3.5 may not, except as provided in subsection (h) or (i), receive a fee for collecting the taxes, interest, or penalties if:
        (1) the taxpayer pays the taxes, interest, or penalties as consideration for the release of a lien placed under subsection (d) on a motor vehicle title; or
        (2) the taxpayer has been denied a certificate or license under subsection (c) within sixty (60) days before the date the taxes, interest, or penalties are collected.
    (h) In the case of a sheriff, subsection (g) does not apply if:
        (1) the sheriff collects the taxes, interest, or penalties within sixty (60) days after the date the sheriff receives the tax warrant; or
        (2) the sheriff collects the taxes, interest, or penalties through the sale or redemption, in a court proceeding, of a motor vehicle that has a lien placed on its title under subsection (d).
    (i) In the case of a person other than a sheriff:
        (1) subsection (g)(2) does not apply if the person collects the taxes, interests, or penalties within sixty (60) days after the date the commissioner employs the person to make the collection; and
        (2) subsection (g)(1) does not apply if the person collects the taxes, interest, or penalties through the sale or redemption, in a court proceeding, of a motor vehicle that has a lien placed on its title under subsection (d).

SOURCE: IC 6-8.1-4-1.6; (02)IN1003.1.122. -->     SECTION 122. IC 6-8.1-4-1.6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1.6. Subject to the discretion of the commissioner as set forth in section 1 of this chapter,

the commissioner shall establish within the department a special tax division. The division shall do the following:
        (1) Administer and enforce the following:
            (A) Bank tax (IC 6-5-10).
            (B) Savings and loan association tax (IC 6-5-11).
            (C) Production credit association tax (IC 6-5-12).
            (D) (A) Gasoline tax (IC 6-6-1.1).
            (E) (B) Special fuel tax (IC 6-6-2.5).
            (F) (C) Motor carrier fuel tax (IC 6-6-4.1).
            (G) (D) Hazardous waste disposal tax (IC 6-6-6.6).
            (H) (E) Cigarette tax (IC 6-7-1).
            (I) (F) Tobacco products tax (IC 6-7-2).
            (J) (G) Alcoholic beverage tax (IC 7.1-4).
            (K) (H) Petroleum severance tax (IC 6-8-1).
            (L) (I) Any other tax the commissioner designates.
        (2) Upon the commissioner's request, conduct studies of the department's operations and recommend whatever changes seem advisable.
        (3) Annually audit a statistical sampling of the returns filed for the taxes administered by the division.
        (4) Annually audit a statistical sampling of registrants with the bureau of motor vehicles, international registration plan division.
        (5) Review federal tax returns and other data that may be helpful in performing the division's function.
        (6) Furnish, at the commissioner's request, information that the commissioner requires.
        (7) Conduct audits requested by the commissioner or the commissioner's designee.
        (8) Administer the statutes providing for motor carrier regulation (IC 8-2.1).

SOURCE: IC 6-8.1-5-2; (02)IN1003.1.123. -->     SECTION 123. IC 6-8.1-5-2, AS AMENDED BY P.L.181-1999, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) Except as otherwise provided in this section, the department may not issue a proposed assessment under section 1 of this chapter more than three (3) years after the latest of the date the return is filed, or any of the following:
        (1) the due date of the return; or
        (2) in the case of a return filed for the state gross retail or use tax, the gasoline tax, the special fuel tax, the motor carrier fuel tax, the oil inspection fee, or the petroleum severance tax, the end of the calendar year which contains the taxable period for which the return is filed.
    (b) If a person files an adjusted gross income tax (IC 6-3), supplemental net income tax (IC 6-3-8) (repealed), county adjusted gross income tax (IC 6-3.5-1.1), county option income tax (IC 6-3.5-6), or financial institutions tax (IC 6-5.5) return that understates the person's income, as that term is defined in the particular income tax law, by at least twenty-five percent (25%), the proposed assessment limitation is six (6) years instead of the three (3) years provided in subsection (a).
    (c) In the case of the motor vehicle excise tax (IC 6-6-5), the tax shall be assessed as provided in IC 6-6-5-5 and IC 6-6-5-6 and shall include the penalties and interest due on all listed taxes not paid by the due date. A person that fails to properly register a vehicle as required by IC 9-18 and pay the tax due under IC 6-6-5 is considered to have failed to file a return for purposes of this article.
    (d) In the case of the commercial vehicle excise tax imposed under IC 6-6-5.5, the tax shall be assessed as provided in IC 6-6-5.5 and shall include the penalties and interest due on all listed taxes not paid by the due date. A person that fails to properly register a commercial vehicle as required by IC 9-18 and pay the tax due under IC 6-6-5.5 is considered to have failed to file a return for purposes of this article.
    (e) If a person files a fraudulent, unsigned, or substantially blank return, or if a person does not file a return, there is no time limit within which the department must issue its proposed assessment.
    (f) If, before the end of the time within which the department may make an assessment, the department and the person agree to extend that assessment time period, the period may be extended according to the terms of a written agreement signed by both the department and the person. The agreement must contain:
        (1) the date to which the extension is made; and
        (2) a statement that the person agrees to preserve the person's records until the extension terminates.
The department and a person may agree to more than one (1) extension under this subsection.
    (g) If a taxpayer's federal income tax liability for a taxable year is modified due to the assessment of a federal deficiency or the filing of an amended federal income tax return, then the date by which the department must issue a proposed assessment under section 1 of this chapter for tax imposed under IC 6-3 is extended to six (6) months after the date on which the notice of modification is filed with the department by the taxpayer.
SOURCE: IC 8-1-2.8-24; (02)IN1003.1.124. -->     SECTION 124. IC 8-1-2.8-24 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 24. If the InTRAC

meets the requirements of sections 18 and 21 of this chapter, the InTRAC:
        (1) for purposes of all taxes imposed by the state or any county or municipality in Indiana is an organization that is organized and operated exclusively for charitable purposes; and
        (2) qualifies for all exemptions applicable to those organizations, including but not limited to those exemptions set forth in IC 6-2.1-3-20 IC 6-2.5-5-21(b)(1)(B) and IC 6-1.1-10-16.

SOURCE: IC 8-6-3-1; (02)IN1003.1.125. -->     SECTION 125. IC 8-6-3-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) Whenever the separation of grades at the intersection of a railroad or railroads (as defined in IC 8-3-1-2) and a public street or highway is constructed, the railroad or railroads shall pay five (5) percent of the cost of the grade separation as provided in this chapter.
    (b) This chapter shall apply to an existing crossing, a new crossing, or the reconstruction of an existing grade separation.
    (c) If more than one (1) railroad (as defined in IC 8-3-1-2) is involved in a separation, the railroads involved shall divide the amount to be paid by the railroads by agreement between the railroads. If the railroads fail to agree, the circuit court of the county in which the crossing is located shall have jurisdiction, upon the application of a party, to determine the division of the amount to be paid by the railroads. The decision of the court is final, unless one (1) or more parties deeming themselves aggrieved by the decision of the court shall appeal therefrom to the court of appeals of Indiana within thirty (30) days, or within additional time not exceeding ninety (90) days, as may be granted by the circuit court. The appeal shall be taken in substantially the same manner as an appeal in a civil case from the circuit court.
    (d) If a grade separation shall involve a state highway that is a part of the state highway system of Indiana, or a street or highway selected by the Indiana department of transportation as a route of a highway in the state highway system, the state, out of the funds of the Indiana department of transportation or funds appropriated for the use of the Indiana department of transportation, shall pay ninety-five percent (95%) of the cost of the grade separation.
    (e) Before the Indiana department of transportation shall proceed with a grade separation within a city or town, the Indiana department of transportation shall first obtain the consent of the city, by a resolution adopted by the board or officials of the city having jurisdiction over improvement of the streets of the city, and any material modification of the plans upon which the consent was granted

shall first be approved by the city by a similar resolution.
    (f) If such grade separation is on a highway or street not a part of the highways under the jurisdiction of the Indiana department of transportation, or a part of a route selected by it, but is within any city or town of the state, the city or town shall pay one-half (1/2) of ninety-five percent (95%) of the total of such cost and the county in which the crossing is located shall be liable for and pay one-half (1/2) of the ninety-five percent (95%).
    (g) If a grade separation that involves a state highway that is a part of the state highway system of Indiana, or a street or highway selected by the Indiana department of transportation as a route of a highway in the state highway system, necessitates the grade separation on other highways or streets, not a part of the highways under the jurisdiction of the Indiana department of transportation but within any city of the state of Indiana, then of the total cost of the grade separation on a highway or street not under the jurisdiction of the Indiana department of transportation but necessitated by the grade separation involving a highway or street which is a part of the state highway system, the city shall pay one-fourth (1/4) of ninety-five percent (95%) and the county in which the crossing is located shall be liable for and pay one-fourth (1/4) of the ninety-five percent (95%) of the total of the costs and the state out of the funds of the Indiana department of transportation or funds appropriated for the use of the Indiana department of transportation, shall be liable for and pay one-half (1/2) of the remaining portion.
    (h) If a crossing is not within any city or town and does not involve a highway under the jurisdiction of the Indiana department of transportation, then the county in which the crossing is located shall pay the ninety-five percent (95%) of the total cost which is not paid by the railroad or railroads.
    (i) The division of the cost of grade separation applies when the grade separation replaces and eliminates an existing grade crossing at which active warning devices are in place or ordered to be installed by a state regulatory agency, but when the grade separation does not replace nor eliminate an existing grade crossing the state, county or municipality, as the case may be, shall bear and pay one hundred percent (100%) of the cost of the grade separation.
    (j) In estimating and computing the cost of the grade separation, there shall be considered as a part of costs all expenses reasonably necessary for preliminary engineering, rights-of-way and all work required to comply with the plans and specifications for the work, including all changes in the highway and the grade thereof and the

approaches to the grade separation, as well as all changes in the roadbed, grade, rails, ties, bridges, buildings, and other structural changes in a railroad as may be necessary to effect the grade separation and to restore the railroad facilities aforesaid to substantially the same condition as before the separation.
    (k) The required railroad share of the cost shall be based on the costs for preliminary engineering, right-of-way, and construction within the limits described below:
        (1) Where a grade crossing is eliminated by grade separation, the structure and approaches for the number of lanes on the existing highway and in accordance with the current design standards of the governmental entity having jurisdiction over the highway involved.
        (2) Where another facility, such as a highway or waterway, requiring a bridge structure is located within the limits of a grade separation project, the estimated cost of a theoretical structure and approaches as described under subdivision (1) to eliminate the railroad-highway grade crossing without considering the presence of the waterway or other highway.
        (3) Where a grade crossing is eliminated by railroad or highway relocation, the actual cost of the relocation project, or the estimated cost of a structure and approaches as described under subdivision (1), whichever is less.
    (l) If the Indiana department of transportation or any city, town, or county is unable to reach an agreement with a railroad company after determining that construction or reconstruction of a grade separation, which replaces or eliminates the need for a grade crossing, is necessary to protect travelers on the roads and streets of the state, the appropriate unit or combination of units of government shall give a written notice of its intention to proceed with the construction or reconstruction of a grade separation to the superintendent or regional engineer of the railroad company. The notice of intention shall be made by the adoption of a resolution stating the need for the grade separation. If, after thirty (30) days, the railroad has not agreed to a division of inspections, plans and specifications, the number and type of jobs to be completed by each agency, a division of costs, and other necessary conditions, the Indiana department of transportation, city, town, or county may proceed with the grade separation exercising any and all of its powers to construct or reconstruct a bridge and, notwithstanding other provisions of this chapter, may pay for up to one hundred percent (100%) of the cost of the project. If the railroad is unable, for good cause, to pay the share of the cost required by this section, the city,

town, or county may certify the amount owed by the railroad to the county auditor who shall prepare a special tax duplicate to be collected and settled for by the county treasurer in the same manner and at the same time as property taxes are collected. except that such tax assessment shall not authorize a payment or credit from the property tax replacement fund created by IC 6-1.1-21. However, before the Indiana department of transportation, city, town, or county undertakes to do the work themselves they shall notify an agent of the railroad as to the time and place of the work.

SOURCE: IC 8-21-9-31; (02)IN1003.1.126. -->     SECTION 126. IC 8-21-9-31 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 31. (a) The exercise of the powers granted by this chapter will be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity, and for the improvement of their health and living conditions, and as the operation and maintenance of an airport facility or airport facilities by the department will constitute the performance of essential governmental functions, the department shall not be required to pay any taxes or assessments upon any airport facility or airport facilities or any property acquired or used by the department under the provisions of this chapter, or upon the income therefrom, and the bonds issued under the provisions of this chapter, the interest thereon, the proceeds received by a holder from the sale of such bonds to the extent of the holder's cost of acquisition, or proceeds received upon redemption prior to maturity or proceeds received at maturity, and the receipt of such interest and proceeds shall be exempt from taxation in the state of Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5 or a state inheritance tax imposed under IC 6-4.1.
    (b) All properties both real and personal owned and operated by the department or leased by the department for proprietary purposes shall be assessed and added to the local tax rolls as any other private property. Such proprietary operations, under control of either the authority or a lessee of the department, shall be subject to Indiana state gross income, adjusted gross income and sales tax laws.
SOURCE: IC 8-22-2-18; (02)IN1003.1.127. -->     SECTION 127. IC 8-22-2-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 18. (a) Subject to the approval of the fiscal body of the eligible entity, the board may contract with any person for construction, extensions, additions, or improvements of an aircraft hangar or revenue producing building or facility located or to be located on the airport of the entity, the cost of which is to be paid in the manner authorized by this section.
    (b) A contract made under this section must be authorized by

ordinance providing that the principal and interest of bonds issued for the payment of the cost of the construction, extensions, additions, or improvements shall be paid exclusively from the revenues and receipts of the aircraft hangars or revenue producing buildings or facilities, unless otherwise provided by this section.
    (c) The fiscal body must, by ordinance, set aside the income and revenues of the buildings or facilities into a separate fund, to be used in the maintenance and operation and in payment of the cost of the construction, extensions, additions, or improvements. The ordinance must fix:
        (1) the proportion of the revenues of the buildings or facilities that is necessary for the reasonable and proper operation and maintenance of them; and
        (2) the proportion of the revenues that are to be set aside and applied to the payment of the principal and interest of bonds.
The ordinance may provide for the proportion of the revenues that are to be set aside as an adequate depreciation account.
    (d) Whenever the board determines that there exists a surplus in funds derived from the net operating receipts of a municipal airport, then the board may recommend to the fiscal body that a designated amount of the surplus fund be appropriated by special or general appropriation to the "aviation revenue bond account" for the relief of principal or interest of bonds issued under this section. However, this surplus in funds may not include monies raised by taxation.
    (e) The fiscal body may issue and sell bonds to provide for the payment of costs of the following:
        (1) Airport capital improvements, including the acquisition of real property.
        (2) Construction or improvement of revenue producing buildings or facilities owned and operated by the eligible entity.
        (3) Payment of any loan contract.
The fiscal body may issue and sell bonds bearing interest, payable annually or semiannually, executed in the manner and payable at the times not exceeding forty (40) years from the date of issue and at the places as the fiscal body of the entity determines, which bonds are payable only out of the "aviation revenue bond account" fund. The bonds have in the hands of bona fide holders all the qualities of negotiable instruments under law.
    (f) In case any of the officers whose signatures or countersignatures appear on the bonds or the coupons ceases to be the officer before the delivery of the bonds to the purchaser, the signature or countersignatures are nevertheless valid and sufficient for all purposes,

the same as if he had remained in office until the delivery of the bonds. The bonds and their interest issued against an "aviation revenue bond account" fund and the fixed proportion or amount of the revenues pledged to the fund does not constitute an indebtedness of the entity under the Constitution of Indiana.
    (g) Each bond must state plainly upon its face that it is payable only from the special fund, naming the fund and the ordinance creating it, and that it does not constitute an indebtedness of the entity under the Constitution of Indiana. The bonds may be issued either as registered bonds or as bonds payable to bearer. Coupons and bearer bonds may be registered as to principal in the holder's name on the books of the entity, the registration being noted on the bond by the clerk or other designated officer, after which no transfer is valid unless made on the books of the entity by the registered holder and similarly noted on the bonds. Bonds so registered as to principal may be discharged from the registration by being transferred to bearer, after which it is transferable by delivery but may be registered again as to principal. The registration of the bonds as to the principal does not restrain the negotiability of the coupon by delivery, but the coupons may be surrendered and the interest made payable only to the registered holder of the bonds. If the coupons are surrendered, the surrender and cancellation of them shall be noted on the bond and then interest on the bond is payable to the registered holder or order in cash or at his option by check or draft payable at the place or one (1) of the places where the coupons are payable.
    (h) The bonds shall be sold in a manner and upon terms that the fiscal body considers in the best interest of the entity.
    (i) All bonds issued by an eligible entity under this section are exempt from taxation for all purposes, except that the interest is subject to adjusted gross income tax.
    (j) In fixing the proportion of the revenues of the building or facility required for operation and maintenance, the fiscal body shall consider the cost of operation and maintenance of the building or facility and may not set aside into the special fund a greater amount or proportion of the revenues and proceeds than are required for the operation and maintenance. The sums set aside for operation and maintenance shall be used exclusively for that purpose, until the accumulation of a surplus results.
    (k) The proportion set aside to the depreciation fund, if a depreciation account or fund is provided for under this section, shall be expended in remedying depreciation in the building or facility or in new construction, extensions, additions, or improvements to the

property. Accumulations of the depreciation fund may be invested, and the income from the investment goes into the depreciation fund. The fund, and the proceeds of it, may not be used for any other purpose.
    (l) The fixed proportion that is set aside for the payment of the principal and interest of the bonds shall, from month to month, as it is accrued and received, be set apart and paid into a special account in the treasury of the eligible entity, to be identified "aviation revenue bond account," the title of the account to be specified by ordinance. In fixing the amount or proportion to be set aside for the payment of the principal and interest of the bonds, the fiscal body may provide that the amount to be set aside and paid into the aviation revenue bond account for any year or years may not exceed a fixed sum, which sum must be at least sufficient to provide for the payment of the interest and principal of the bonds maturing and becoming payable in each year, together with a surplus or margin of ten percent (10%).
    (m) If a surplus is accumulated in the operating and maintenance fund that is equal to the cost of maintaining and operating the building or facility for the twelve (12) following calendar months, the excess over the surplus may be transferred by the fiscal body to either the depreciation account to be used for improvements, extensions, or additions to property or to the aviation revenue bond account fund, as the fiscal body designates.
    (n) If a surplus is created in the aviation revenue bond account in excess of the interest and principal of bonds, plus ten percent (10%), becoming payable during the calendar, operating, or fiscal year then current, together with the amount of interest or principal of bonds becoming due and payable during the next calendar, operating, or fiscal year, the fiscal body may transfer the excess over the surplus to either the operating and maintenance account, or to the depreciation account, as the fiscal body designates.
    (o) All money received from bonds issued under this section shall be applied solely for the purposes listed in subsection (e). There is created a statutory mortgage lien upon buildings or facilities for which bonds are issued in favor of the holders of the bonds and of the coupons of the bonds. The buildings or facilities so constructed, extended, or improved remain subject to the statutory mortgage lien until payment in full of the principal and interest of the bonds.
    (p) A holder of the bonds or of the attached coupons may enforce the statutory mortgage lien conferred by this section, and may enforce performance of all duties required by this section of the eligible entity issuing the bond or of any officer of the entity, including:
        (1) the making and collecting of reasonable and sufficient rates or

rentals for the use or lease of the buildings or facilities, or part of them established for the rent, lease, or use of the buildings or facilities;
        (2) the segregation of the revenues from the buildings or facilities; and
        (3) the application of the respective funds created by this section.
    (q) If there is a default in the payment of the principal or interest of any of the bonds, a court having jurisdiction of the action may appoint an administrator or receiver to administer, manage, or operate the buildings or facilities on behalf of the entity, and the bondholders, with power to:
        (1) charge and collect rates or rentals for the use or lease of the buildings or facilities sufficient to provide for the payment of the operating expenses;
        (2) pay any bonds or obligations outstanding against the buildings or facilities; and
        (3) apply the income and revenues thereof in accord with this section and the ordinance.

SOURCE: IC 8-22-3.5-12; (02)IN1003.1.128. -->     SECTION 128. IC 8-22-3.5-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. (a) Notwithstanding any other law, a taxpayer in an airport development zone is not entitled to a credit for property tax replacement under IC 6-1.1-21-5.
    (b) Notwithstanding subsection (a), in a county described in section 1(5) of this chapter, a taxpayer is entitled to a property tax replacement credit under IC 6-1.1-21-5 for the portion of property taxes for which an inventory tax credit under section 16 of this chapter is not allowed.
    (c) An amount equal to the total of all inventory tax credit available under section 16 of this chapter shall be excluded from the total county tax levy under IC 6-1.1-21-2(g).
SOURCE: IC 8-22-3.5-14; (02)IN1003.1.129. -->     SECTION 129. IC 8-22-3.5-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) This section applies only to an airport development zone that is in a:
        (1) city described in section 1(2) of this chapter; or
        (2) county described in section 1(3) or 1(4) of this chapter.
    (b) Notwithstanding any other law, a business or an employee of a business that is located in an airport development zone is entitled to the benefits provided by the following statutes, as if the business were located in an enterprise zone:
        (1) IC 6-1.1-20.8.
        (2) (1) IC 6-2.1-3-32.
        (3) (2) IC 6-3-2-8.
        (4) (3) IC 6-3-3-10.
        (5) (4) IC 6-3.1-7.
        (6) (5) IC 6-3.1-9.
        (7) (6) IC 6-3.1-10-6.
    (c) Before June 1 of each year, a business described in subsection (b) must pay a fee equal to the amount of the fee that is required for enterprise zone businesses under IC 4-4-6.1-2(4)(A). However, notwithstanding IC 4-4-6.1-2(4)(A), the fee shall be paid into the debt service fund established under section 9(e)(2) of this chapter. If the commission determines that a business has failed to pay the fee required by this subsection, the business is not eligible for any of the benefits described in subsection (b).
    (d) A business that receives any of the benefits described in subsection (b) must use all of those benefits, except for the amount of the fee required by subsection (c), for its property or employees in the airport development zone and to assist the commission. If the commission determines that a business has failed to use its benefits in the manner required by this subsection, the business is not eligible for any of the benefits described in subsection (b).
    (e) If the commission determines that a business has failed to pay the fee required by subsection (c) or has failed to use benefits in the manner required by subsection (d), the commission shall provide written notice of the determination to the department of state revenue, the state board of tax commissioners, and the county auditor.
SOURCE: IC 8-22-3.5-15; (02)IN1003.1.130. -->     SECTION 130. IC 8-22-3.5-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. (a) As used in this section, "state income tax liability" means a tax liability that is incurred under:
        (1) IC 6-2.1 (the gross income tax);
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax); or
        (3) IC 6-3-8 (the supplemental net income tax); or
        (4) (2) any other tax imposed by this state and based on or measured by either gross income or net income.
    (b) The attraction of qualified airport development projects to a consolidated city within Indiana is a governmental function of general public benefit for all the citizens of Indiana.
    (c) As an incentive to attract qualified airport development projects to Indiana, for a period of thirty-five (35) years, beginning January 1, 1991, persons that locate and operate a qualified airport development project in an airport development zone in a consolidated city shall not incur, notwithstanding any other law, any state income tax liability as

a result of:
        (1) activities associated with locating the qualified airport development project in the consolidated city;
        (2) the construction or completion of the qualified airport development project;
        (3) the employment of personnel or the ownership or rental of property at or in conjunction with the qualified airport development project; or
        (4) the operation of, or the activities at or in connection with, the qualified airport development project.
    (d) The department of state revenue shall adopt rules under IC 4-22-2 to implement this section.

SOURCE: IC 8-23-17-32; (02)IN1003.1.131. -->     SECTION 131. IC 8-23-17-32 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 32. (a) All amounts paid to displaced persons under this chapter are exempt from taxation under IC 6-2.1 and IC 6-3.
    (b) A payment received under this chapter is not considered as income for the purpose of determining the eligibility or extent of eligibility of any person for public assistance under the following:
        AFDC assistance.
        AFDC burials.
        AFDC IMPACT/J.O.B.S.
        AFDC-UP assistance.
        ARCH.
        Blind relief.
        Child care.
        Child welfare adoption assistance.
        Child welfare adoption opportunities.
        Child welfare assistance.
        Child welfare child care improvement.
        Child welfare child abuse.
        Child welfare child abuse and neglect prevention.
        Child welfare children's victim advocacy program.
        Child welfare foster care assistance.
        Child welfare independent living.
        Child welfare medical assistance to wards.
        Child welfare program review action group (PRAG).
        Child welfare special needs adoption.
        Food Stamp administration.
        Health care for indigent (HIC).
        ICES.
        IMPACT (food stamps).
        Title IV-D (ICETS).
        Title IV-D child support administration.
        Title IV-D child support enforcement (parent locator).
        Medicaid assistance.
        Medical services for inmates and patients (590).
        Room and board assistance (RBA).
        Refugee social service.
        Refugee resettlement.
        Repatriated citizens.
        SSI burials and disabled examinations.
        Title XIX certification.
        Any other Indiana law administered by the division of family and children.
SOURCE: IC 11-12-10-4; (02)IN1003.1.132. -->     SECTION 132. IC 11-12-10-4, AS ADDED BY P.L.273-1999, SECTION 209, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) The department shall reimburse communities on a per diem basis for services provided to persons assigned to a community transition program under IC 11-10-11.5.
    (b) The department shall set the per diem rate under this section. In setting the per diem rate for a community, the department may consider the direct costs incurred by the community to provide a community transition program. The per diem may not be less than seven dollars ($7).
    (c) Funding provided under this section is in addition to any other funding received under IC 11-12-2 for community corrections programs or IC 11-13-2 for probation services.
    (d) Money received by a community under this section shall be deposited in the community transition program fund for the community.
SOURCE: IC 12-7-2-31.4; (02)IN1003.1.133. -->     SECTION 133. IC 12-7-2-31.4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 31.4. "Child services" has the meaning set forth in IC 12-19-7-1.
SOURCE: IC 12-7-2-32; (02)IN1003.1.134. -->     SECTION 134. IC 12-7-2-32 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 32. "Child welfare services", for purposes of the following statutes, means the services for children prescribed in IC 12-17-3-1:
        (1) IC 12-13.
        (2) IC 12-14.
        (3) IC 12-15.
        (4) IC 12-17-1.
        (5) IC 12-17-2.
        (6) IC 12-17-3.
        (7) IC 12-17-9.
        (8) IC 12-17-10.
        (9) IC 12-17-11.
        (10) IC 12-19. IC 12-17-2-31.
SOURCE: IC 12-7-2-70; (02)IN1003.1.135. -->     SECTION 135. IC 12-7-2-70 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 70. "Domestic violence prevention and treatment center", for purposes of IC 12-18-3 and IC 12-18-4, means an organized entity:
        (1) established by:
            (A) a city, town, county, or township; or
            (B) an entity exempted from the Indiana gross income retail tax under IC 6-2.1-3-20; IC 6-2.5-5-21(b)(1)(B); and
        (2) created to provide services to prevent and treat domestic violence between spouses or former spouses.
SOURCE: IC 12-7-2-81; (02)IN1003.1.136. -->     SECTION 136. IC 12-7-2-81 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 81. (a) "Expenses and obligations", for purposes of the statutes listed in subsection (b), refer to expenses, obligations, assistance, and claims:
        (1) of a county office;
        (2) incurred in the administration of the welfare services; of the county;
        (3) incurred as provided by law; and
        (4) for:
            (A) assistance for aged persons in need;
            (B) assistance to dependent children; and
            (C) other assistance or services that a county office is authorized by law to allow.
    (b) This section applies to the following statutes:
        (1) IC 12-13.
        (2) IC 12-14.
        (3) IC 12-15.
        (4) IC 12-17-1.
        (5) IC 12-17-2.
        (6) IC 12-17-3.
        (7) IC 12-17-9.
        (8) IC 12-17-10.
        (9) IC 12-17-11.
        (10) IC 12-19.
SOURCE: IC 12-7-2-91; (02)IN1003.1.137. -->     SECTION 137. IC 12-7-2-91, AS AMENDED BY P.L.14-2000, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JANUARY 1, 2003]: Sec. 91. "Fund" means the following:
        (1) For purposes of IC 12-12-1-9, the fund described in IC 12-12-1-9.
        (2) For purposes of IC 12-13-8, the meaning set forth in IC 12-13-8-1.
        (3) (2) For purposes of IC 12-15-20, the meaning set forth in IC 12-15-20-1.
        (4) (3) For purposes of IC 12-17-12, the meaning set forth in IC 12-17-12-4.
        (5) (4) For purposes of IC 12-17.6, the meaning set forth in IC 12-17.6-1-3.
        (6) (5) For purposes of IC 12-18-4, the meaning set forth in IC 12-18-4-1.
        (7) (6) For purposes of IC 12-18-5, the meaning set forth in IC 12-18-5-1.
        (8) For purposes of IC 12-19-7, the meaning set forth in IC 12-19-7-2.
        (9) (7) For purposes of IC 12-23-2, the meaning set forth in IC 12-23-2-1.
        (10) (8) For purposes of IC 12-24-6, the meaning set forth in IC 12-24-6-1.
        (11) (9) For purposes of IC 12-24-14, the meaning set forth in IC 12-24-14-1.
        (12) (10) For purposes of IC 12-30-7, the meaning set forth in IC 12-30-7-3.

SOURCE: IC 12-7-2-200; (02)IN1003.1.138. -->     SECTION 138. IC 12-7-2-200 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 200. (a) "Warrant", for purposes of the statutes listed in subsection (b), means an instrument that is:
        (1) the equivalent of a money payment; and
        (2) immediately convertible into cash by the payee for the full face amount of the instrument.
    (b) This section applies to the following statutes:
        (1) IC 12-10-6.
        (2) IC 12-13.
        (3) IC 12-14.
        (4) IC 12-15.
        (5) IC 12-17-1.
        (6) IC 12-17-9.
        (7) IC 12-17-10.
        (8) IC 12-17-11.
        (9) IC 12-19.
SOURCE: IC 12-13-5-1; (02)IN1003.1.139. -->     SECTION 139. IC 12-13-5-1, AS AMENDED BY P.L.273-1999, SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. The division shall administer or supervise the public welfare activities of the state. The division has the following powers and duties:
        (1) The administration of old age assistance, aid to dependent children, and assistance to the needy blind and persons with disabilities, excluding assistance to children with special health care needs.
        (2) The administration of the following:
            (A) Any public child welfare service or child service.
            (B) The licensing and inspection under IC 12-17.2 and IC 12-17.4.
            (C) The care of dependent and neglected children in foster family homes or institutions, especially children placed for adoption or those born out of wedlock.
            (D) The interstate placement of children.
        (3) The provision of services to county governments, including the following:
            (A) Organizing and supervising county offices for the effective administration of public welfare functions.
            (B) Compiling statistics and necessary information concerning public welfare problems throughout Indiana.
            (C) Researching and encouraging research into crime, delinquency, physical and mental disability, and the cause of dependency.
        (4) Prescribing the form of, printing, and supplying to the county departments blanks for applications, reports, affidavits, and other forms the division considers necessary and advisable.
        (5) Cooperating with the federal Social Security Administration and with any other agency of the federal government in any reasonable manner necessary and in conformity with IC 12-13 through IC 12-19 to qualify for federal aid for assistance to persons who are entitled to assistance under the federal Social Security Act. The responsibilities include the following:
            (A) Making reports in the form and containing the information that the federal Social Security Administration Board or any other agency of the federal government requires.
            (B) Complying with the requirements that a board or agency finds necessary to assure the correctness and verification of reports.
        (6) Appointing from eligible lists established by the state

personnel board employees of the division necessary to effectively carry out IC 12-13 through IC 12-19. The division may not appoint a person who is not a citizen of the United States and who has not been a resident of Indiana for at least one (1) year immediately preceding the person's appointment unless a qualified person cannot be found in Indiana for a position as a result of holding an open competitive examination.
        (7) Assisting the office of Medicaid policy and planning in fixing fees to be paid to ophthalmologists and optometrists for the examination of applicants for and recipients of assistance as needy blind persons.
        (8) When requested, assisting other departments, agencies, divisions, and institutions of the state and federal government in performing services consistent with this article.
        (9) Acting as the agent of the federal government for the following:
            (A) In welfare matters of mutual concern under IC 12-13 through IC 12-19.
            (B) In the administration of federal money granted to Indiana in aiding welfare functions of the state government.
        (10) Administering additional public welfare functions vested in the division by law and providing for the progressive codification of the laws the division is required to administer.
        (11) Supervising day care centers and child placing agencies.
        (12) Supervising the licensing and inspection of all public child caring agencies.
        (13) Supervising the care of delinquent children and children in need of services.
        (14) Assisting juvenile courts as required by IC 31-30 through IC 31-40.
        (15) Supervising the care of dependent children and children placed for adoption.
        (16) Compiling information and statistics concerning the ethnicity and gender of a program or service recipient.
        (17) Providing permanency planning services for children in need of services, including:
            (A) making children legally available for adoption; and
            (B) placing children in adoptive homes;
        in a timely manner.
         (18) Providing medical assistance to wards from money appropriated for that purpose.

SOURCE: IC 12-13-5-5; (02)IN1003.1.140. -->     SECTION 140. IC 12-13-5-5, AS AMENDED BY P.L.273-1999,

SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) Each county auditor shall keep records and make reports relating to the county welfare fund (before July 1, 2001), the family and children's fund (before January 1, 2004), and other financial transactions as required under IC 12-13 through IC 12-19 and as required by the division.
    (b) All records provided for in IC 12-13 through IC 12-19 shall be kept, prepared, and submitted in the form required by the division and the state board of accounts.

SOURCE: IC 12-13-7-17; (02)IN1003.1.141. -->     SECTION 141. IC 12-13-7-17, AS AMENDED BY P.L.273-1999, SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. The part of the care and maintenance of the inmates of the Plainfield Juvenile Correctional Facility and the Indianapolis Juvenile Correctional Facility that under law is to be charged back to the counties shall be paid from the county general fund. and not the county family and children's fund, unless otherwise provided by law.
SOURCE: IC 12-15-15-9; (02)IN1003.1.142. -->     SECTION 142. IC 12-15-15-9, AS AMENDED BY P.L.283-2001, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. (a) Subject to subsections (e), (f), (g), and (h), for each state fiscal year ending June 30, 1998, June 30, 1999, June 30, 2000, June 30, 2001, and June 30, 2002, and each state fiscal year to which subsection (e), (f), (g), or (h) applies, a hospital is entitled to a payment under this section.
    (b) Subject to subsections (e), (f), (g), and (h), total payments to hospitals under this section for a state fiscal year shall be equal to all amounts transferred from the state hospital care for the indigent fund program established under IC 12-16 or IC 12-16.1 for Medicaid current obligations during the state fiscal year, including amounts of the fund program appropriated for Medicaid current obligations.
    (c) The payment due to a hospital under this section must be based on a policy developed by the office. The policy:
        (1) is not required to provide for equal payments to all hospitals;
        (2) must attempt, to the extent practicable as determined by the office, to establish a payment rate that minimizes the difference between the aggregate amount paid under this section to all hospitals in a county for a state fiscal year and the amount of the county's hospital care for the indigent property tax levy; for that state fiscal year and
        (3) must provide that no hospital will receive a payment under this section less than the amount the hospital received under IC 12-15-15-8 for the state fiscal year ending June 30, 1997.
    (d) Following the transfer of funds under subsection (b), an amount equal to the amount determined in the following STEPS shall be deposited in the Medicaid indigent care trust fund under IC 12-15-20-2(2) and used to fund a portion of the state's share of the disproportionate share payments to providers for the state fiscal year:
        STEP ONE: Determine the difference between:
            (A) the amount transferred from the state hospital care for the indigent fund under subsection (b); and
            (B) thirty-five million dollars ($35,000,000).
        STEP TWO: Multiply the amount determined under STEP ONE by the federal medical assistance percentage for the state fiscal year.
    (e) If funds are transferred under IC 12-16-14.1-2(e), those funds must be used for the state's share of funding for payments to hospitals under this subsection. A payment under this subsection shall be made to all hospitals that received a payment under this section for the state fiscal year beginning July 1, 2001, and ending June 30, 2002. Payments under this subsection shall be in proportion to each hospital's payment under this section for the state fiscal year beginning July 1, 2001, and ending June 30, 2002.
    (f) If the office of the uninsured parents program established by IC 12-17.7-2-1 does not implement an uninsured parents program as provided for in IC 12-17.7 before July 1, 2003, and funds are transferred under IC 12-16-14.1-3, a hospital is entitled to a payment under this section for the state fiscal year beginning on July 1, 2002. Payments under this subsection shall be made after July 1, 2003, but before December 31, 2003.
    (g) If the office does not implement an uninsured parents program as provided for in IC 12-17.7 before July 1, 2003, a hospital is entitled to a payment under this section for state fiscal years ending after June 30, 2003.
    (h) If funds are transferred under IC 12-17.7-9-2, those funds shall be used for the state's share of payments to hospitals under this subsection. A payment under this subsection shall be made to all hospitals that received a payment under this section for the state fiscal year beginning July 1, 2001, and ending June 30, 2002. Payments under this subsection shall be in proportion to each hospital's payment under this section for the state fiscal year beginning July 1, 2001, and ending June 30, 2002.
SOURCE: IC 12-15-20-2; (02)IN1003.1.143. -->     SECTION 143. IC 12-15-20-2, AS AMENDED BY P.L.283-2001, SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. The Medicaid indigent care trust fund is established to pay the state's share of the following:
        (1) Enhanced disproportionate share payments to providers under IC 12-15-19-1.
        (2) Subject to subdivision (5), disproportionate share payments to providers under IC 12-15-19-2.1.
        (3) Medicaid payments for pregnant women described in IC 12-15-2-13 and infants and children described in IC 12-15-2-14.
        (4) Municipal disproportionate share payments to providers under IC 12-15-19-8.
        (5) Of the intergovernmental transfers deposited into the Medicaid indigent care trust fund under IC 12-15-15-1.1(d), the following apply:
            (A) The entirety of the intergovernmental transfers deposited into the Medicaid indigent care trust fund under IC 12-15-15-1.1(d) for state fiscal years ending on or before June 30, 2000, shall be used to fund the state's share of the disproportionate share payments to providers under IC 12-15-19-2.1.
            (B) Of the intergovernmental transfers deposited into the Medicaid indigent care trust fund under IC 12-15-15-1.1(d) for state fiscal years ending after June 30, 2000, an amount equal to one hundred percent (100%) of the total intergovernmental transfers deposited into the Medicaid indigent care trust fund under IC 12-15-15-1.1(d) for the state fiscal year beginning July 1, 1998, and ending June 30, 1999, shall be used to fund the state's share of disproportionate share payments to providers under IC 12-15-19-2.1. The remainder of the intergovernmental transfers under IC 12-15-15-1.1(d) for the state fiscal year shall be transferred to the state uninsured parents program fund established under IC 12-17.8-2-1 to fund the state's share of funding for the uninsured parents program established under IC 12-17.7.
            (C) If the office does not implement an uninsured parents program as provided for in IC 12-17.7 before July 1, 2003, the intergovernmental transfers transferred to the state uninsured parents program fund under clause (B) shall be returned to the Medicaid indigent care trust fund to be used to fund the state's share of Medicaid add-on payments to hospitals licensed under IC 16-21 under a payment methodology which shall be developed by the office.
            (D) If funds are transferred under IC 12-17.7-9-2 or IC 12-17.8-2-4(c) IC 12-17.8-2-4 to the Medicaid indigent care trust fund, the funds shall be used to fund the state's share of

Medicaid add-on payments to hospitals licensed under IC 16-21 under a payment methodology which the office shall develop.

SOURCE: IC 12-16-14.1-1; (02)IN1003.1.144. -->     SECTION 144. IC 12-16-14.1-1, AS ADDED BY P.L.283-2001, SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) All funds in a county hospital care for the indigent fund on July 1, 2002, derived from taxes levied under IC 12-16-14-1(1) or allocated under IC 12-16-14-1(2) shall be immediately transferred to the state hospital care for the indigent fund.
    (b) (a) Subject to subsection (d), (b), beginning July 1, 2002, all tax receipts derived from taxes levied under IC 12-16-14-1(1) (repealed) that are first due and payable in calendar year 2002 or earlier, or allocated under IC 12-16-14-1(2) (repealed) in calendar year 2002 or earlier, shall be paid into the county general fund. Before the fifth day of each month, all of the tax receipts paid into the general fund under this subdivision subsection during the preceding month shall be transferred to the state hospital care for the indigent fund.
    (c) All tax receipts derived from taxes levied under IC 12-16-14-1(1) that are first due and payable after calendar year 2002, or allocated under IC 12-16-14-1(2) after calendar year 2002, shall be paid into the county general fund. Before the fifth day of each month, all of the tax receipts paid into the general fund under this subdivision during the preceding month shall be transferred to the state uninsured parents program fund established by IC 12-17.8-2-1.
    (d) (b) If the state hospital care for the indigent fund is closed under section 2(d) of this chapter at the time a transfer of receipts is to be made to the fund, the receipts shall be transferred to the state uninsured parents program fund established by IC 12-17.8-2-1.
SOURCE: IC 12-16-14.1-2; (02)IN1003.1.145. -->     SECTION 145. IC 12-16-14.1-2, AS ADDED BY P.L.283-2001, SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) Subject to subsections (b), (c), and (e), and subject to the requirements of IC 12-15-15-9(b) regarding appropriations from the state hospital care for the indigent fund for Medicaid current obligations, beginning July 1, 2002, all funds deposited in the state hospital care for the indigent fund derived from taxes levied under IC 12-16-14-1(1) (repealed) or allocated under IC 12-16-14-1(2) (repealed) shall be used by the division to pay claims for services:
        (1) eligible for payment under the hospital care for the indigent program under IC 12-16-2 (before its repeal); and
        (2) provided before July 1, 2002.
    (b) This section may not delay, limit, or reduce the following:
        (1) Any appropriation required under state law from the state hospital care for the indigent fund for Medicaid current obligations for the state fiscal years beginning July 1, 2000, and July 1, 2001, for purposes of payments under IC 12-15-15-9(a) through IC 12-15-15-9(d) for the state fiscal years beginning July 1, 2000, and July 1, 2001.
        (2) The transfer of additional funds from the state hospital care for the indigent fund for Medicaid current obligations anticipated under IC 12-15-15-9(b) for purposes of IC 12-15-15-9(a) through IC 12-15-15-9(d) for the state fiscal years beginning July 1, 2000, and July 1, 2001.
        (3) for state fiscal years beginning after June 30, 2002, any other appropriation required under state law from the state hospital care for the indigent fund for the uninsured parents program established under IC 12-17.7-2-2. IC 12-17.7-2-1.
    (c) The division shall cooperate with the office in causing the appropriations and transfers from the state hospital care for the indigent fund described in subsection (b) to occur.
    (d) The state hospital care for the indigent fund shall close upon the earlier of the following:
        (1) The payment of all funds in the fund.
        (2) The payment of all claims for services provided before July 1, 2002, that were eligible for payment under the hospital care for the indigent program under IC 12-16-2 (before its repeal).
    (e) Notwithstanding subsection (d) and IC 12-16.1, if at any time before the closing of the state hospital care for the indigent fund the amount of funds on deposit exceeds the amount necessary to pay the claims for services provided before July 1, 2002, that were eligible for payment under the hospital care for the indigent program under IC 12-16 (before its repeal), those excess funds shall be transferred from the fund for use as the state's share of funding for payments to hospitals under IC 12-15-15-9(e). Subject to the operation of Except for funds transferred to the state hospital care for the indigent fund under sections 4.5, 5, and 6 of this chapter, amounts deposited in the state hospital care for the indigent fund under IC 12-16.1 are not subject to this subsection.
    (f) Upon the closing of the state hospital care for the indigent fund, no further obligation shall be owed under the hospital care for the indigent program under IC 12-16-2 (before its repeal).
SOURCE: IC 12-16-14.1-4.5; (02)IN1003.1.146. -->     SECTION 146. IC 12-16-14.1-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4.5. (a) All tax receipts

derived from taxes levied under IC 12-16-14-1(1) (repealed) that are first due and payable in calendar year 2002 or earlier or allocated under IC 12-16-14-1(2) (repealed) in calendar year 2002 or earlier that are in the county general fund on December 31, 2002, shall be transferred to the state hospital care for the indigent fund before January 5, 2003.
    (b) If the state hospital care for the indigent fund is closed under section 2 of this chapter at the time a transfer of receipts is to be made to the fund under subsection (a), the receipts shall be transferred to the state uninsured parents program fund established by IC 12-17.8-2-1. If the uninsured parents program is terminated before January 1, 2002, money transferred to the uninsured parents program fund under subsection (a) shall be disposed of as provided in IC 12-17.7-9-2.
    (c) If a county has in its possession on December 31, 2002, money described in subsection (a) that has not been deposited in the county general fund or receives money described in subsection (a) after December 31, 2002, the county shall immediately transfer the money to the state for deposit as described in subsections (a) and (b).

SOURCE: IC 12-16-14.1-5; (02)IN1003.1.147. -->     SECTION 147. IC 12-16-14.1-5, AS ADDED BY P.L.283-2001, SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. If the office does not implement an uninsured parents program as provided for in IC 12-17.7 after December 31, 2002, and before July 1, 2003,
        (1) the transfer of funds under this chapter will cease on July 1, 2003;
        (2) all tax receipts on deposit in a county general fund under section 1(b) of this chapter shall be immediately transferred to the state hospital care for the indigent fund for use as provided in section 2 of this chapter or, if the state hospital care for the indigent fund is closed, to the state uninsured parents program fund;
        (3) on July 1, 2003, all tax receipts on deposit in a county general fund under section 1(c) of this chapter shall be immediately transferred to the state uninsured parents program fund for distribution under section 3 of this chapter; and
        (4) all funds deposited in the state hospital care for the indigent fund shall be used as provided in section 2 of this chapter.
SOURCE: IC 12-16-14.1-6; (02)IN1003.1.148. -->     SECTION 148. IC 12-16-14.1-6, AS ADDED BY P.L.283-2001, SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. If the uninsured parents program

implemented and maintained under IC 12-17.7 terminates under IC 12-17.7-9-1
        (1) all transfers under this chapter will cease immediately;
        (2) all tax receipts on deposit in a county general fund under section 1(b) of this chapter, shall be immediately transferred to the state hospital care for the indigent fund for use as provided in section 2 of this chapter or, if the state hospital care for the indigent fund is closed, to the state uninsured parents program fund;
        (3) all tax receipts on deposit in a county general fund under section 1(c) of this chapter, shall be immediately transferred to the state uninsured parents program fund; and
        (4) after December 31, 2002, all funds deposited in the state hospital care for the indigent fund shall be used as provided in section 2 of this chapter.

SOURCE: IC 12-16.1-7-2; (02)IN1003.1.149. -->     SECTION 149. IC 12-16.1-7-2, AS ADDED BY P.L.283-2001, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. (a) Except as provided in section 5 of this chapter, claims for payment shall be segregated by year using the patient's admission date.
    (b) Each year, the division shall pay claims as provided in section 4 of this chapter without regard to the county of admission. or that county's transfer to the state fund.
SOURCE: IC 12-16.1-7-4; (02)IN1003.1.150. -->     SECTION 150. IC 12-16.1-7-4, AS ADDED BY P.L.283-2001, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) Each year, the division shall pay two-thirds (2/3) of each claim upon submission and approval of the claim.
    (b) If the amount of money in the state hospital care for the indigent fund in a state fiscal year is insufficient to pay two-thirds (2/3) of each approved claim for patients admitted in that year, the state's and a county's liability to providers under the hospital care for the indigent program for claims approved for patients admitted in that year is limited to the sum of the following:
        (1) The amount transferred to the state hospital care for the indigent fund from county hospital care for the indigent funds in that year under IC 12-16.1-13 (repealed).
        (2) Any contribution to the fund in that year.
        (3) Any amount that was appropriated to the state hospital care for the indigent fund program for that year by the general assembly.
        (4) Any amount that was carried over to the state hospital care for the indigent fund from a preceding year.
    (c) This section does not obligate the general assembly to appropriate money to the state hospital care for the indigent fund.
SOURCE: IC 12-16.1-7-9; (02)IN1003.1.151. -->     SECTION 151. IC 12-16.1-7-9, AS ADDED BY P.L.283-2001, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. IC 12-16.1-2 through IC 12-16.1-14 IC 12-16.1-15 do not affect the liability of a county with respect to claims for hospital care for the indigent for patients admitted before January 1, 1987.
SOURCE: IC 12-16.1-13-3; (02)IN1003.1.152. -->     SECTION 152. IC 12-16.1-13-3, AS ADDED BY P.L.283-2001, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 3. (a) Before the fifth day of each month, all money contained in a county hospital care for the indigent fund at the end of the preceding month shall be transferred to the state hospital care for the indigent fund.
    (b) If the state hospital care for the indigent fund is closed under IC 12-16-14.1-2(d), a new state hospital care for the indigent fund is established under this article.
SOURCE: IC 12-16.1-13-4; (02)IN1003.1.153. -->     SECTION 153. IC 12-16.1-13-4, AS ADDED BY P.L.283-2001, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 4. (a) Subject to IC 12-16-14.1-5(4) IC 12-16-14.1-5 and IC 12-16-14.1-6(4), IC 12-16-14.1-6, the state hospital care for the indigent fund under this article consists of the following:
        (1) Money transferred to the state hospital care for the indigent fund from the county hospital care for the indigent funds.
        (2) Any contributions to the fund from individuals, corporations, foundations, or others for the purpose of providing hospital care for the indigent.
        (3) Money advanced to the fund under IC 12-16.1-14.
        (4) (3) Appropriations made specifically to the fund by the general assembly.
    (b) This section does not obligate the general assembly to appropriate money to the state hospital care for the indigent fund.
SOURCE: IC 12-17-1-10; (02)IN1003.1.154. -->     SECTION 154. IC 12-17-1-10, AS AMENDED BY P.L.273-1999, SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. (a) Upon the completion of an investigation under section 9 of this chapter, the county office shall do the following:
        (1) Determine whether the child is eligible for assistance under this chapter and the division's rules.
        (2) Determine the amount of the assistance and the date on which the assistance is to begin.
        (3) Make an award, including any subsequent modification of the award, with which the county office shall comply until the award or modified award is vacated.
        (4) Notify the applicant and the division of the county office's decision in writing.
    (b) The county office shall provide assistance to the recipient at least monthly upon warrant of the county auditor of state. The assistance must be
        (1) made from the county family and children's fund; and
        (2) based upon a verified schedule of the recipients.
    (c) The director of the county office shall prepare and verify the amount payable to the recipient, in relation to the awards made by the county office. The division shall prescribe the form upon which the schedule under subsection (b)(2) (b) must be filed.
SOURCE: IC 12-17-3-3; (02)IN1003.1.155. -->     SECTION 155. IC 12-17-3-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) The state shall provide money to a county to assist the county in defraying the pay expenses incurred for child welfare services as provided in section 1 of this chapter.
    (b) The state shall provide the money under subsection (a) as follows:
        (1) Monthly.
        (2) Based upon need.
        (3) (1) From money received through the federal government for the purpose described in this section.
        (4) (2) In an amount to be determined by the division in conformity with the Social Security Act (42 U.S.C. 602).
SOURCE: IC 12-17.7-9-2; (02)IN1003.1.156. -->     SECTION 156. IC 12-17.7-9-2, AS ADDED BY P.L.283-2001, SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. Upon termination of the uninsured parents program, all funds on deposit in the state uninsured parents program fund, including funds transferred to the fund under IC 12-16-14.1-6(2) (as effective December 31, 2002), shall be used to pay expenses and other obligations of the program, as determined by the office. Any remaining funds attributable to taxes levied under IC 12-16-14-1(1) (repealed) or allocated under IC 12-16-14-1(2) (repealed) shall be transferred from the fund for use as the state's share of payments under IC 12-15-15-9(h). Any remaining funds attributable to transfers from the Medicaid indigent care trust fund under IC 12-15-20-2(5) shall be transferred from the state uninsured parents program fund for use as the state's share of payments under IC 12-15-20-2(5)(D).
SOURCE: IC 12-17.8-2-1; (02)IN1003.1.157. -->     SECTION 157. IC 12-17.8-2-1, AS ADDED BY P.L.283-2001, SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JANUARY 1, 2003]: Sec. 1. (a) The state uninsured parents program fund is established.
    (b) Before the fifth day of each month, all money contained in a county hospital care for the indigent fund at the end of the preceding month shall be transferred to the state uninsured parents program fund.

SOURCE: IC 12-17.8-2-2; (02)IN1003.1.158. -->     SECTION 158. IC 12-17.8-2-2, AS ADDED BY P.L.283-2001, SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) The state uninsured parents program fund consists of the following:
        (1) The money transferred to the state uninsured parents program fund from the county hospital care for the indigent funds .
        (2) The money transferred to the state uninsured parents program fund under IC 12-15-20-2(5).
        (3) The money transferred to the state uninsured parents program fund under IC 12-16-14.1.
        (4) Any contributions to the fund from individuals, corporations, foundations, public or private trust funds, or others for the purpose of providing medical assistance to uninsured parents.
        (5) The money advanced to the fund under section 5 of this chapter.
        (6) (5) The appropriations made specifically to the fund by the general assembly or a state board, trust, or fund.
        (7) (6) Any voluntary intergovernmental transfer to the fund.
    (b) This section does not obligate the general assembly or any state board, trust, or fund to appropriate money to the state uninsured parents program fund.
SOURCE: IC 12-17.8-2-4; (02)IN1003.1.159. -->     SECTION 159. IC 12-17.8-2-4, AS ADDED BY P.L.283-2001, SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) Subject to subsections (c) and (d), money in the state uninsured parents program fund at the end of a state fiscal year remains in the fund and does not revert to the state general fund.
    (b) For each state fiscal year beginning July 1, 2002, to the extent that money is available in the fund that is not needed to meet the expenses of the uninsured parents program, the office of the uninsured parents program established by IC 12-17.7-2-1 Medicaid policy and planning established by IC 12-8-6-1 shall transfer from the state uninsured parents program fund an amount equal to the amount determined by multiplying thirty-five million dollars ($35,000,000) by the federal medical assistance percentage for the state fiscal year. The transferred amount shall be used for Medicaid current

obligations. The transfer may be made in a single payment or multiple payments throughout the state fiscal year.
    (c) At the end of a state fiscal year, the office shall do the following:
        (1) Determine the sums on deposit in the state uninsured parents program fund.
        (2) Calculate a reasonable estimate of the sums to be transferred to the state uninsured parents program fund during the next state fiscal year, taking into consideration the timing of the transfers.
        (3) Calculate a reasonable estimate of the expenses to be paid by the program during the next state fiscal year, taking into consideration the likely number of enrollees in the program during the next state fiscal year.
    (d) If the amount on deposit in the state uninsured parents program fund at the end of a state fiscal year, combined with the estimated amount of transfers of funds into the fund during the next state fiscal year, exceeds the estimate of the expenses to be paid by the program during the next state fiscal year, then a sum equal to the excess amount shall be transferred from the funds on deposit in the state uninsured parents program fund at the end of the state fiscal year to the Medicaid indigent care trust fund for purposes of IC 12-15-20-2(5)(D).

SOURCE: IC 12-18-4-7; (02)IN1003.1.160. -->     SECTION 160. IC 12-18-4-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. A:
        (1) city, town, county, or township; or
        (2) an entity that is exempted from the Indiana gross income retail tax under IC 6-2.1-3-20; IC 6-2.5-5-21(b)(1)(B);
that desires to receive a grant under this chapter or enter into a contract with the council must apply in the manner prescribed by the rules of the division.
SOURCE: IC 12-19-1-16; (02)IN1003.1.161. -->     SECTION 161. IC 12-19-1-16, AS AMENDED BY P.L.273-1999, SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. (a) This section does not apply to money received to reimburse the county family and children's fund for expenditures made from the appropriations of the county office.
    (b) A county office may receive and administer money available to or for the benefit of a person receiving payments or services from the county office. The following applies to all money received under this section:
        (1) The money shall be kept in a special fund known as the county family and children trust clearance fund and may not be commingled with any other fund or with money received from taxation.
        (2) The money may be expended by the county office in any manner consistent with the following:
            (A) The purpose of the county family and children trust clearance fund or with the intention of the donor of the money.
            (B) Indiana law.
SOURCE: IC 12-19-1-21; (02)IN1003.1.162. -->     SECTION 162. IC 12-19-1-21, AS ADDED BY P.L.273-1999, SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21. (a) Notwithstanding any other law, after December 31, 1999, a county may not impose any of the following:
        (1) A property tax levy for a county welfare fund.
        (2) A property tax levy for a county welfare administration fund.
     (b) Notwithstanding any other law, after December 31, 2002, a county may not impose any of the following:
        (1) A property tax levy for the county's family and children's fund (IC 12-19-7-3 (repealed)).
        (2) A property tax levy for a county medical assistance to wards fund (IC 12-13-8-2 (repealed)).
        (3) A property tax levy for a children with special health care needs county fund (IC 16-35-3-1 (repealed)).
        (4) The part of a county general fund levy imposed under IC 12-16-14-1 (repealed) to transfer money to the state for the hospital care for indigent program or the uninsured parent program.
This subsection does not prohibit a property tax levy under IC 12-19-5 or IC 12-19-7 to repay the principal of, interest on, issuance costs of, or liquidation costs of loans or bonds issued for expenditures from the county family and children's fund before January 1, 2003.

SOURCE: IC 12-19-1-22; (02)IN1003.1.163. -->     SECTION 163. IC 12-19-1-22, AS ADDED BY P.L.273-1999, SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 22. (a) All bonds issued and loans made under IC 12-1-11 (before its repeal) or this article:
         (1) before January 1, 2000, that are payable from property taxes imposed under IC 12-19-3 (before its repeal); or
        (2) before January 1, 2003, that are payable from property taxes imposed under IC 12-19-7-3 (repealed) to eliminate the authority to impose a property tax levy;

(1) are direct general obligations of the county issuing the bonds or making the loans and (2) are payable out of unlimited ad valorem taxes that shall be levied and collected on all taxable property within the county.
    (b) Each official and body responsible for the levying of taxes for the county must ensure that sufficient levies are made to meet the principal and interest on the bonds and loans at the time fixed for the payment of the principal and interest, without regard to any other statute. If an official or a body fails or refuses to make or allow a sufficient levy required by this section, the bonds and loans and the interest on the bonds and loans shall be payable out of the county general fund without appropriation.
SOURCE: IC 12-19-1.5-6; (02)IN1003.1.164. -->     SECTION 164. IC 12-19-1.5-6, AS ADDED BY P.L.273-1999, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) As used in this chapter, "replacement amount" means the sum of the property taxes imposed on the assessed value of property in the allocation area in excess of the base assessed value in 1999 for
        (1) the county welfare fund; and
        (2) the county welfare administration fund.
any of the property tax levies described in section 8 of this chapter. The part of the county general fund levy imposed in 2002 on the property imposed in the allocation area for the operation of the courts, as determined by the department of local government finance, in excess of the base assessed value in 2002 and the property taxes imposed on the assessed value of property in the allocation area that exceed the base assessed value in 2002 for:
            (1) the county family and children's fund;
            (2) the county health care for the indigent fund;
            (3) the county medical assistance to wards fund; and
            (4) the county children with special health care needs fund.
    (b) The term includes the part of:
        (1) the county general fund levy that is eliminated as a result of the assumption after 2002 of court personnel and other operating expenditures under IC 33-1-18-6; and
        (2) the school general fund levy that is eliminated as a result of the change in the tuition support formula in 2002 by the general assembly;
that exceeds the base assessed value in 2002 for a school general fund levy.

SOURCE: IC 12-19-1.5-8; (02)IN1003.1.165. -->     SECTION 165. IC 12-19-1.5-8, AS ADDED BY P.L.273-1999, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) This chapter applies to an allocation area:
         (1) in which:
            (1) (A) the holders of obligations received a pledge before July 1, 1999, of tax increment revenues to repay any part of the obligations due after December 31, 1999; and
            (2) (B) the elimination of a county welfare fund property tax levy or a county welfare administration fund property tax levy adversely affects the ability of the governing body to repay the obligations described in subdivision (1). clause (A);
        (2) in which:
            (A) the holders of obligations received a pledge before July 1, 2002, of tax increment revenues to repay any part of the obligations due after December 31, 2002; and
            (B) the elimination of:
                (i) a county family and children's fund;
                (ii) a county health care for the indigent fund;
                (iii) a county medical assistance to wards fund; or
                (iv) a county children with special health care needs fund;
            property tax levy adversely affects the ability of the governing body to repay the obligations described in clause (A); or
        (3) in which:
            (A) the holders of obligations received a pledge before July 1, 2002, of tax increment revenues to repay any part of the obligations due after December 31, 2002; and
            (B) the elimination of the part of the county general fund levy imposed in 2002 for personnel or other operating expenses of the courts as determined by the department of local government finance;

        adversely affects the ability of the governing body to repay the obligations described in clause (A).
    (b) This chapter applies to an allocation area in which:
        (1) the holders of obligations received a pledge before July 1, 2002, of tax increment revenues to repay any part of the obligations due after December 31, 2002; and
        (2) the reduction of a school general fund levy adversely affects the ability of the governing body to repay the obligations described in subdivision (1).

     (c) 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.
SOURCE: IC 12-19-1.5-9; (02)IN1003.1.166. -->     SECTION 166. IC 12-19-1.5-9, AS ADDED BY P.L.273-1999, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE

JANUARY 1, 2003]: 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:
         (1) a bond or an obligation described in section 8 section 8(a)(1) of this chapter that comes due after December 31, 1999; or
        (2) a bond or an obligation described in section 8(a)(2) of this chapter that comes due after December 31, 2002.

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.

SOURCE: IC 12-19-1.5-10; (02)IN1003.1.167. -->     SECTION 167. IC  12-19-1.5-10 , AS ADDED BY P.L.273-1999, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: 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). the additional credit provided to taxpayers in an allocation area under IC 6-1.1-21.3-6.
    (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.
SOURCE: IC 12-19-5-10; (02)IN1003.1.168. -->     SECTION 168. IC 12-19-5-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. (a) If a county director:
        (1) appeals before August 1 of a year for permission to borrow money under a provision of this chapter (before its repeal);
        (2) receives permission from the county fiscal body to borrow money before November 1 of the year; and
        (3) borrows money before January 1, 2003, under IC 12-1-11.5 (before its repeal) or a provision of this chapter (before its repeal);
the county auditor shall levy a property tax beginning in the following year and continuing for the term of the loan.
    (b) The property tax levied under subsection (a) must be in an amount each year that will be sufficient to pay the principal and interest due on the loan for the year.
    (c) The levy under this section shall be retained by the county treasurer and applied by the county auditor to retire the debt.
     (d) This section expires December 31, 2013.
SOURCE: IC 12-19-5-11; (02)IN1003.1.169. -->     SECTION 169. IC 12-19-5-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) If a county director:
        (1) appeals after August 1 of a year and before January 1, 2003, for permission to borrow money;
        (2) receives permission from the county fiscal body to borrow money; and
        (3) borrows money in the year of the appeal under IC 12-1-11.5 (before its repeal) or a provision of this chapter (before its repeal);
the county auditor shall levy a property tax beginning in the second year following the year of the appeal and continuing for the term of the loan.
    (b) The property tax levied under subsection (a) must be in an amount each year that will be sufficient to pay the principal and interest due on the loan for the year.
    (c) The levy under this section shall be retained by the county treasurer and applied by the county auditor to retire the debt.
     (d) This section expires December 31, 2013.
SOURCE: IC 12-19-6-5; (02)IN1003.1.170. -->     SECTION 170. IC 12-19-6-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) As used in this section, "indirect cost" means a cost that is not directly traceable to a particular activity undertaken in the administration of the following:
        (1) The federal Food Stamp program (7 U.S.C. 2011 et seq.).
        (2) The federal Aid to Families with Dependent Children program (42 U.S.C. 601 et seq.).
        (3) the federal Child Support Enforcement Act (42 U.S.C. 651 et seq.).
    (b) The division shall pay to each county the money paid to the state as reimbursement for the indirect costs incurred by the county and the county office.
SOURCE: IC 12-19-7-1; (02)IN1003.1.171. -->     SECTION 171. IC 12-19-7-1, AS AMENDED BY P.L.139-2000, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter, "child services" means the following:
        (1) Child welfare services specifically provided for children who are:
            (A) adjudicated to be:
                (i) children in need of services; or
                (ii) delinquent children; or
            (B) recipients of or are eligible for:
                (i) informal adjustments;
                (ii) service referral agreements; and
                (iii) adoption assistance;
        including the costs of using an institution or facility in Indiana for providing educational services as described in either IC 20-8.1-3-36 (if applicable) or IC 20-8.1-6.1-8 (if applicable), all services required to be paid by a county the division under IC 31-40-1-2, and all costs required to be paid by a county under IC 20-8.1-6.1-7.
        (2) Assistance awarded by a county to a destitute child under IC 12-17-1.
        (3) Child welfare services as described in IC 12-17-3.
         (4) Family services (as defined in IC 31-9-2-45).
SOURCE: IC 12-19-7-19; (02)IN1003.1.172. -->     SECTION 172. IC 12-19-7-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 19. (a) An ordinance adopted by the county fiscal body authorizing a loan under a provision of this chapter (before its repeal) must do the following:
        (1) Authorize the issuance of the bonds of the county to evidence the loan.
        (2) Fix the following:
            (A) The loan's maximum amount, which may be less than the amount shown by the estimate of the county director.
            (B) The number of semiannual series in which the bonds are payable, which may not exceed twenty (20).
     (b) This section expires December 31, 2023.
SOURCE: IC 12-19-7-28; (02)IN1003.1.173. -->     SECTION 173. IC 12-19-7-28 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 28. (a) All bonds issued under a provision of this chapter (before its repeal):
        (1) are direct general obligations of the county issuing the bonds; and
        (2) are payable out of unlimited ad valorem taxes that shall be levied and collected on all the taxable property within the county.
    (b) Each official and body responsible for the levying of taxes for the county must ensure that sufficient levies are made to meet the principal and interest on the bonds at the time fixed for the payment of the principal and interest, without regard to any other statute. If an official or a body fails or refuses to make or allow a sufficient levy required by this section, the bonds and the interest on the bonds shall be payable out of the general fund of the county without appropriation.
     (c) This section expires December 31, 2023.
SOURCE: IC 12-19-7-32; (02)IN1003.1.174. -->     SECTION 174. IC 12-19-7-32 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 32. (a) The serial bonds issued under section 31 of this chapter (before its repeal):
        (1) may be of any denomination that is:
            (A) not less than fifty dollars ($50); and
            (B) not more than one thousand dollars ($1,000);
        (2) shall be payable:
            (A) at any place named on the serial bonds; and
            (B) at any time not later than fifteen (15) years after the date of the serial bonds;
        (3) may bear any rate of interest, payable annually or semiannually;
        (4) shall be sold at not less than the par value of the bonds; and
        (5) shall be sold in the manner provided for the sale of bonds issued under IC 12-20-23.
     (b) This section expires January 1, 2018.
SOURCE: IC 12-19-7-33; (02)IN1003.1.175. -->     SECTION 175. IC 12-19-7-33 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 33. (a) The county fiscal body shall add to the tax duplicate of the county:
        (1) an annual levy sufficient to pay the yearly interest on the bonds issued under section 31 of this chapter (before its repeal); and
        (2) an annual levy sufficient to provide a sinking fund for the liquidation of the principal as the principal becomes due. The sinking fund shall be applied solely to the payment of the bonds.
    (b) If the county fiscal body fails to levy a tax sufficient to pay the interest on the bonds or to liquidate the principal of the bonds as the principal becomes due, the county auditor shall levy the tax or increase the tax levy made by the county fiscal body in the amount necessary to pay the interest and to retire the bonds as the bonds become due.
    (c) Notwithstanding any other law, the tax levy may not be reduced below the amount required under this section.
     (d) This section expires January 1, 2018.
SOURCE: IC 13-21-12-3; (02)IN1003.1.176. -->     SECTION 176. IC 13-21-12-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. A security issued in connection with a financing under this article, the interest on which is excludable from adjusted gross income tax, is exempt from the registration requirements of IC 23.
SOURCE: IC 14-27-6-41; (02)IN1003.1.177. -->     SECTION 177. IC 14-27-6-41 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 41. (a) All bonds issued under this chapter or under IC 13-2-31 (before its repeal) are the direct general obligations of the authority issuing the bonds and are payable out of unlimited ad valorem taxes that shall be levied and collected on all the taxable property within the district. All officials and bodies involved with the levying of taxes for the district shall ensure that sufficient levies are made to meet the principal and interest on the bonds at the time fixed for payment without regard to any other statute.
    (b) The bonds issued under this chapter or under IC 13-2-31 (before its repeal) are exempt from taxation for all purposes. including the gross income tax.
SOURCE: IC 16-22-8-43; (02)IN1003.1.178. -->     SECTION 178. IC 16-22-8-43 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 43. (a) The board may issue general obligation bonds of the corporation to procure funds to pay the cost of acquiring real property or constructing, enlarging, improving, remodeling, repairing, or equipping buildings and other structures for use as or in connection with hospitals, clinics, health centers, dispensaries, or for administrative purposes. The issuance of the bonds shall be authorized by ordinance of the board providing for the amount, terms, and tenor of the bonds, for the time and character of notice, and the mode of making the sale. The bonds shall be payable not more than forty (40) years after the date of issuance and shall be executed in the name of the corporation by the chairman of the board and attested by the executive director, who shall affix to each of the bonds the official seal of the corporation. The interest coupons attached to the bonds may be executed by facsimile signature of the chairman of the board.
    (b) The executive director shall manage and supervise the preparation, advertisement, and sale of bonds, subject to the provisions of the authorizing ordinance. Before the sale of the bonds, the executive director shall publish notice of the sale in accordance with IC 5-3-1, setting out the time and place where bids will be received, the amount and maturity dates of the issue, the maximum interest rate, and the terms and conditions of sale and delivery of the bonds. The bonds shall be sold to the highest and best bidder. After the bonds have been

sold and executed, the executive director shall deliver the bonds to the treasurer of the corporation and take the treasurer's receipt, and shall certify to the treasurer the amount that the purchaser is to pay, together with the name and address of the purchaser. On payment of the purchase price, the treasurer shall deliver the bonds to the purchaser, and the treasurer and executive director shall report the actions to the board.
    (c) IC 5-1 and IC 6-1.1-20 apply to the following proceedings:
        (1) Notice and filing of the petition requesting the issuance of the bonds.
        (2) Notice of determination to issue bonds.
        (3) Notice of hearing on the appropriation of the proceeds of the bonds and the right of taxpayers to appeal and be heard.
        (4) Approval by the state board of tax commissioners.
        (5) The right to remonstrate.
        (6) Sale of bonds at public sale for not less than the par value.
    (d) The bonds are the direct general obligations of the corporation and are payable out of unlimited ad valorem taxes levied and collected on all the taxable property within the county of the corporation. All officials and bodies having to do with the levying of taxes for the corporation shall see that sufficient levies are made to meet the principal and interest on the bonds at the time fixed for payment.
    (e) The bonds are exempt from taxation for all purposes, including the gross income tax but the interest is subject to adjusted gross income tax.

SOURCE: IC 16-33-4-17; (02)IN1003.1.179. -->     SECTION 179. IC 16-33-4-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. (a) Each child, the estate of the child, the parent or parents of the child, or the guardian of the child, individually or collectively, are liable for the payment of the costs of maintenance of the child of up to one hundred percent (100%) of the per capita cost, except as otherwise provided. The cost shall be computed annually by dividing the total annual cost of operation for the fiscal year, exclusive of the cost of education programs, construction, and equipment, by the total child days each year. The maintenance cost shall be referred to as maintenance charges. The charge may not be levied against any of the following:
        (1) The division of family and children. or the county office of family and children to be derived from county tax sources.
        (2) A child orphaned by reason of the death of the natural parents.
    (b) The billing and collection of the maintenance charges as provided for in subsection (a) shall be made by the superintendent of the home based on the per capita cost for the preceding fiscal year. All money

collected shall be deposited in a fund to be known as the Indiana soldiers' and sailors' children's home maintenance fund. The fund shall be used by the state health commissioner for the:
        (1) preventative maintenance; and
        (2) repair and rehabilitation;
of buildings of the home that are used for housing, food service, or education of the children of the home.
    (c) The superintendent of the home may, with the approval of the state health commissioner, agree to accept payment at a lesser rate than that prescribed in subsection (a). The superintendent of the home shall, in determining whether or not to accept the lesser amount, take into consideration the amount of money that is necessary to maintain or support any member of the family of the child. All agreements to accept a lesser amount are subject to cancellation or modification at any time by the superintendent of the home with the approval of the state health commissioner.
    (d) A person who has been issued a statement of amounts due as maintenance charges may petition the superintendent of the home for a release from or modification of the statement and the superintendent shall provide for hearings to be held on the petition. The superintendent of the home may, with the approval of the state health commissioner and after the hearing, cancel or modify the former statement and at any time for due cause may increase the amounts due for maintenance charges to an amount not to exceed the maximum cost as determined under subsection (a).
    (e) The superintendent of the home may arrange for the establishment of a graduation or discharge trust account for a child by arranging to accept a lesser rate of maintenance charge. The trust fund must be of sufficient size to provide for immediate expenses upon graduation or discharge.
    (f) The superintendent may make agreements with instrumentalities of the federal government for application of any monetary awards to be applied toward the maintenance charges in a manner that provides a sufficient amount of the periodic award to be deposited in the child's trust account to meet the immediate personal needs of the child and to provide a suitable graduation or discharge allowance. The amount applied toward the settlement of maintenance charges may not exceed the amount specified in subsection (a).
    (g) The superintendent of the home may do the following:
        (1) Investigate, either with the superintendent's own staff or on a contractual or other basis, the financial condition of each person liable under this chapter.


        (2) Make determinations of the ability of:
            (A) the estate of the child;
            (B) the legal guardian of the child; or
            (C) each of the responsible parents of the child;
        to pay maintenance charges.
        (3) Set a standard as a basis of judgment of ability to pay that shall be recomputed periodically to do the following:
            (A) Reflect changes in the cost of living and other pertinent factors.
            (B) Provide for unusual and exceptional circumstances in the application of the standard.
        (4) Issue to any person liable under this chapter statements of amounts due as maintenance charges, requiring the person to pay monthly, quarterly, or otherwise as may be arranged, an amount not exceeding the maximum cost as determined under this chapter.
SOURCE: IC 16-33-4-17.5; (02)IN1003.1.180. -->     SECTION 180. IC 16-33-4-17.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17.5. (a) In the case of a child who is:
        (1) admitted to the home from another county; and
        (2) adjudicated to be a delinquent child or child in need of services by the juvenile court in the county where the home is located;
the juvenile court may order the county office division of family and children of the child's county of residence before the child's admission to the home to reimburse the cost of services ordered by the juvenile court, including related transportation costs, and any cost incurred by the county to transport or detain the child before the order is issued.
    (b) A county office of family and children ordered to reimburse costs under this section shall pay the amount ordered from the county family and children's fund.
    (c) (b) The county office division of family and children may require the parent or guardian of the child, other than a parent, guardian, or custodian associated with the home, to reimburse the county division of family and children's fund children for an amount paid under this section.
    (d) (c) A child who is admitted to the home does not become a resident of the county where the home is located.
    (e) (d) When an unemancipated child is released from the home, the county office division of family and children for the child's county of residence before entering the home is responsible for transporting the child to the parent or guardian of the child. If a parent or guardian does not exist for an unemancipated child released from the home, the

county office of family and children of the child's county of residence before entering the home shall obtain custody of the child.

SOURCE: IC 16-35-2-10; (02)IN1003.1.181. -->     SECTION 181. IC 16-35-2-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. The state department shall use money appropriated from the state general fund for services to children with special health care needs to pay the expenses and obligations incurred by the state department for services to children with special health care needs.
SOURCE: IC 16-42-5-4; (02)IN1003.1.182. -->     SECTION 182. IC 16-42-5-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) An organization that is exempt from the Indiana state gross income retail tax under IC 6-2.1-3-20 through IC 6-2.1-3-22 IC 6-2.5-5-21(b)(1)(B), IC 6-2.5-5-21(b)(1)(C), or IC 6-2.5-5-21(b)(1)(D) and that offers food for sale to the final consumer at an event held for the benefit of the organization is exempt from complying with the requirements of this chapter that may be imposed upon the sale of food at that event if the following conditions are met:
        (1) Members of the organization prepare the food that will be sold.
        (2) Events conducted by the organization under this section take place for not more than thirty (30) days in a calendar year.
        (3) The name of each member who has prepared a food item is attached to the container in which the food item has been placed.
    (b) This section does not prohibit an exempted organization from waiving the exemption and applying for a license under this chapter.
SOURCE: IC 20-3-11-20; (02)IN1003.1.183. -->     SECTION 183. IC 20-3-11-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 20. (a) Each such board of school commissioners may from time to time, whenever its general fund shall be exhausted or in the board's judgment be in danger of exhaustion, make temporary loans for the use of its general fund to be paid out of the:
         (1) proceeds of taxes theretofore levied by such school city for its general fund; and
        (2) anticipated state tuition support distributions.

The amount so borrowed in aid of said general fund shall be paid into said general fund and may be used for any purpose for which the said general fund lawfully may be used.
     (b) Any such temporary loan shall be evidenced by the promissory note or notes of said school city, shall bear interest at not more than seven per cent (7%) per annum, interest payable at the maturity of the note or periodically, as the note may express, and shall mature at such time or times as the board of school commissioners may decide, but not

later than one (1) year from the date of the note. No such loan or loans made in any one (1) calendar year shall be for a sum greater than the amount estimated by said board as the:
         (1) proceeds to be received by it from the levy of taxes theretofore made by said school city in behalf of; and
        (2) amount of state tuition support distributions estimated to be received for and distributed to;

its said general fund.
     (c) Successive loans may be made in aid of said general fund in any calendar year, but the aggregate amount thereof, outstanding at any one (1) time, shall not exceed such estimated:
         (1) proceeds of taxes levied in behalf of; and
        (2) state tuition support distributions to be received for and distributed to;

the said general fund.
     (d) No such loan shall be made until notice asking for bids therefor shall have been given by newspaper publication, which publication shall be made one (1) time in a newspaper published in said city and said publication shall be at least seven (7) days before the time when bids for such loans will be opened. Bidders shall name the amount of interest they agree to accept not exceeding seven per cent (7%) per annum, and the loan shall be made to the bidder or bidders bidding the lowest rate of interest. The note or notes or warrants shall not be delivered until the full price of the face thereof shall be paid to the treasurer of said school city, and no interest shall accrue thereon before such delivery.
     (e) Any such school corporation wishing to make a temporary loan in aid of its general fund, finding that it has need to exercise the power in this section above given to make a temporary loan, which has in its treasury money derived from the sale of bonds, which money derived from the sale of bonds can not or will not, in the due course of the business of said school city, be expended in the then near future, may, if it so elects, temporarily borrow, and without payment of interest, from such bond fund, for the use and aid of said general fund in the manner and to the extent hereinafter expressed, viz.: Such school city shall, by its board of school commissioners, take all the steps required by law to effect such temporary loan up to the point of advertising for bids or offers for such loans. It shall then present to the state board of tax commissioners of the state of Indiana, department of local government finance, and to the state board of accounts of the state of Indiana, a copy of the corporate action of said school city concerning its desire to make such temporary loan and a petition showing the

particular need for such temporary loan, and the amount and the date or dates when said general fund will need such temporary loan, or instalments of such loan, and the date at which such loan, and each instalment thereof, will be needed, and the estimated amounts from taxes and state tuition support to come into said general fund, and the dates when it is expected such proceeds of taxes and state tuition support will be received by such school city in behalf of said general fund, and showing what amount of money said school city has in any fund derived from the proceeds of the sale of bonds, which can not or will not be expended in the then near future, and showing when and to what extent and why money in such bond fund, not soon to be expended, will not be expended in the then near future and requesting that said state board of tax commissioners, department of local government finance and said state board of accounts, respectively, authorize a temporary loan from said bond fund in aid of said general fund.
     (f) If said state board of tax commissioners department of local government finance shall find and order that there is need for such temporary loan, and that it should be made, and said state board of accounts shall find that the money proposed to be borrowed will not be needed during the period of the temporary loan by the fund from which it is to be borrowed, and said two (2) state boards the department of local government finance and the state board of accounts shall approve the loan, the business manager and treasurer of said school city shall, upon such approval by said two (2) state boards, take all steps necessary to transfer the amount of such loans, as a temporary loan from the fund to be borrowed from, to said general fund of such school city. The loan so effected shall, for all purposes, be a debt of the school city chargeable against its constitutional debt limit.
    Such two (2) state boards (g) The department of local government finance and the state board of accounts may fix the aggregate amount so to be borrowed on any one (1) petition and shall determine at what time or times and in what instalments and for what periods it shall be borrowed. The treasurer and business manager of such school city, from time to time, as money shall be collected from taxes levied in behalf of said general fund, shall credit the same on such loan until the amount borrowed is fully repaid to the lending fund, and they shall at the end of each calendar month report to the board the several amounts so applied from taxes and state tuition support to the payment of such loan.
     (h) The school city shall, as often as once a month, report to both of said state boards the department of local government finance and

the state board of accounts the amount of money then so borrowed and unpaid, the anticipated like borrowings of the current month, the amount left in the said general fund, and the anticipated drafts upon the lending bond fund for the objects for which that fund was created.
    Said two (2) state boards, or either of them, (i) The department of local government finance or the state board of accounts, or both, may, if it shall seem to said boards, or to either of them, seems to the department of local government finance or the state board of accounts, or both, that the fund from which the loan was made requires the repayment of all or of part of such loan(s) before its maturity or said general fund no longer requires all or some part of the proceeds of such loan, require such school city to repay all or any part of such loan, and, if necessary to perform the requirement, such school city shall exercise its power of making a temporary loan procured from others to raise the money so needed to repay the lending bond fund the amount so ordered repaid.

SOURCE: IC 20-5-4-6; (02)IN1003.1.184. -->     SECTION 184. IC 20-5-4-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. If the governing board shall find, by written resolution, that an emergency exists which requires the expenditure of any money for any lawful corporate purpose which was not included in its existing budget and tax levy, it may authorize the making of an emergency loan which may be evidenced by the issuance of its note or notes in the same manner and subject to the same procedure and restrictions as provided for the issuance of its bonds, except as to purpose. At the time for making the next annual budget and tax levy for such school corporation, the governing body shall:
         (1) make a levy;
         (2) pledge an amount from the school corporation's anticipated state tuition support distribution; or
        (3) do both of the actions under subdivisions (1) and (2);

to the credit of the fund for which such expenditure is made sufficient to pay such debt and the interest thereon; however, the interest on the loan may be paid from the debt service fund.
SOURCE: IC 20-5-4-8; (02)IN1003.1.185. -->     SECTION 185. IC 20-5-4-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) Whenever the governing board of a school corporation finds and declares that an emergency exists for the borrowing of money with which to pay current expenses from a particular fund before the receipt of revenues from taxes levied or state tuition support distributions for such fund, the governing board may issue warrants in anticipation of the receipt of:
         (1) said revenues;
         (2) state tuition support distributions; or
        (3) both items listed in subdivisions (1) and (2).

    (b) The principal of these warrants shall be payable solely from the fund for which the taxes are levied or from the general fund in the case of anticipated state tuition support distributions. However, the interest on these warrants may be paid from the debt service fund, from the fund for which the taxes are levied, or the general fund in the case of anticipated state tuition support distributions.
    (c) The amount of principal of temporary loans maturing on or before June 30 for any fund shall not exceed eighty percent (80%) of the amount of taxes and state tuition support distributions estimated to be collected or received for and distributed to the fund at the June settlement.
    (d) The amount of principal of temporary loans maturing after June 30, and on or before December 31, shall not exceed eighty percent (80%) of the amount of taxes and state tuition support distributions estimated to be collected or received for and distributed to the fund at the December settlement.
    (e) At each settlement, the amount of taxes and state tuition support distributions estimated to be collected or received for and distributed to the fund includes any allocations to the fund from the property tax replacement fund. for homestead credits.
    (f) The estimated amount of taxes and state tuition support distributions to be collected or received and distributed shall be made by the county auditor or the auditor's deputy. The warrants evidencing any loan in anticipation of tax revenue, or state tuition support distributions, or both tax revenue and state tuition support distributions, shall not be delivered to the purchaser of the warrant nor payment made on the warrant before January 1 of the year the loan is to be repaid. However, the proceedings necessary to the loan may be held and carried out before January 1 and before the approval. The loan may be made even though a part of the last preceding June or December settlement has not yet been received.
    (g) Proceedings for the issuance and sale of warrants for more than one (1) fund may be combined, but separate warrants for each fund shall be issued and each warrant shall state on its face the fund from which its principal is payable. No action to contest the validity of such warrants shall be brought later than fifteen (15) days from the first publication of notice of sale.
    (h) No issue of tax or state tuition support anticipation warrants shall be made if the aggregate of all these warrants exceed twenty thousand dollars ($20,000) until the issuance is advertised for sale, bids received,

and an award made by the governing board as required for the sale of bonds, except that the sale notice need not be published outside of the county nor more than ten (10) days before the date of sale.

SOURCE: IC 20-8.1-3-36; (02)IN1003.1.186. -->     SECTION 186. IC 20-8.1-3-36 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 36. (a) It is unlawful for a person operating or responsible for an educational, correctional, charitable, or benevolent institution or training school to fail to ensure that a child under his authority attends school as required under this chapter. Each day of violation of this section constitutes a separate offense.
    (b) If a child is placed in an institution or facility under a court order, the institution or facility shall charge the county office of the county of the student's legal settlement under IC 12-19-7 division of family and children 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.
SOURCE: IC 20-8.1-6.1-7; (02)IN1003.1.187. -->     SECTION 187. IC 20-8.1-6.1-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) If a student is transferred under section 2 of this chapter from a school corporation in Indiana to a public school corporation in another state, the transferor corporation shall pay the transferee corporation the full tuition fee charged by the transferee corporation. However, the amount of the full tuition fee must not exceed the amount charged by the transferor corporation for the same class of school, or if the school has no such classification, the amount must not exceed the amount charged by the geographically nearest school corporation in Indiana which has such classification.
    (b) If a child is:
        (1) placed by a court order in an out-of-state institution or other facility; and
        (2) provided all educational programs and services by a public school corporation in the state where the child is placed, whether at the facility, the public school, or another location;
the county office of family and children for the county placing the child division of family and children shall pay from the county family and children's fund to the public school corporation in which the child is enrolled the amount of transfer tuition specified in subsection (c).
    (c) The transfer tuition for which a county office the division of family and children is obligated under subsection (b) is equal to the following:
        (1) The amount under a written agreement among the county office, the institution or other facility, and the governing body of

the public school corporation in the other state that specifies the amount and method of computing transfer tuition.
        (2) The full tuition fee charged by the transferee corporation, if subdivision (1) does not apply. However, the amount of the full tuition fee must not exceed the amount charged by the transferor corporation for the same class of school, or if the school has no such classification, the amount must not exceed the amount charged by the geographically nearest school corporation in Indiana which has such classification.
    (d) If a child is:
        (1) placed by a court order in an out-of-state institution or other facility; and
        (2) provided:
            (A) onsite educational programs and services either through the facility's employees or by contract with another person or organization that is not a public school corporation; or
            (B) educational programs and services by a nonpublic school;
the county office of family and children for the county placing the child shall pay from the county family and children's fund in an amount and in the manner specified in a written agreement between the county office and the institution or other facility.
    (e) An agreement described in subsection (c) or (d) is subject to the approval of the director of the division of family and children. However, for purposes of IC 4-13-2, the agreement shall not be treated as a contract.

SOURCE: IC 20-8.1-6.1-8; (02)IN1003.1.188. -->     SECTION 188. IC 20-8.1-6.1-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) As used in this section, the following terms have the following meanings:
        (1) "Class of school" refers to a classification of each school or program in the transferee corporation by the grades or special programs taught at the school. Generally, these classifications are denominated as kindergarten, elementary school, middle school or junior high school, high school, and special schools or classes, such as schools or classes for special education, vocational training, or career education.
        (2) "ADM" means the following:
            (A) For purposes of allocating to a transfer student state distributions under IC 21-1-30 (primetime), "ADM" as computed under IC 21-1-30-2.
            (B) For all other purposes, "ADM" as set forth in IC 21-3-1.6-1.1.
        (3) "Pupil enrollment" means the following:
            (A) The total number of students in kindergarten through grade 12 who are enrolled in a transferee school corporation on a date determined by the Indiana state board of education.
            (B) The total number of students enrolled in a class of school in a transferee school corporation on a date determined by the Indiana state board of education.
        However, a kindergarten student shall be counted under clauses (A) and (B) as one-half (1/2) a student.
        (4) "Special equipment" means equipment that during a school year:
            (A) is used only when a child with disabilities is attending school;
            (B) is not used to transport a child to or from a place where the child is attending school;
            (C) is necessary for the education of each child with disabilities that uses the equipment, as determined under the individualized instruction program for the child; and
            (D) is not used for or by any child who is not a child with disabilities.
The Indiana state board of education may select a different date for counts under subdivision (3). However, the same date shall be used for all school corporations making a count for the same class of school.
    (b) Each transferee corporation is entitled to receive for each school year on account of each transferred student, except a student transferred under section 3 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 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) The following state distributions that are computed in any part using ADM or other pupil count in which the student is included:
                (i) Primetime grant under IC 21-1-30.
                (ii) Tuition support for basic programs and at-risk weights under IC 21-3-1.7-8 (before January 1, 1996) and only for basic programs (after December 31, 1995).
                (iii) Enrollment growth grant under IC 21-3-1.7-9.5.
                (iv) At-risk grant under IC 21-3-1.7-9.7.
                (v) Academic honors diploma award under IC 21-3-1.7-9.8.
                (vi) Vocational education grant under IC 21-3-1.8-3.
                (vii) Special education grant under IC 21-3-1.8 (repealed January 1, 1996) or IC 21-3-10.
                (viii) (vii) The portion of the ADA flat grant that is available for the payment of general operating expenses under IC 21-3-4.5-2(b)(1).
            (B) For school years beginning after June 30, 1997, property tax levies.
            (C) For school years beginning after June 30, 1997, excise tax revenue (as defined in IC 21-3-1.7-2) received for deposit in the calendar year in which the school year begins.
            (D) For school years beginning after June 30, 1997, 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 under a court order, the institution or facility shall charge the county office of the county of the student's legal settlement under IC 12-19-7 division of family and children 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 which is made out of the general fund 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 Indiana state board of education; 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 pupil enrollment of each class in the transferee corporation compared to the total pupil 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 pupil 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 pupil attendance, the transfer tuition shall be calculated by the portion of the school year for which the transferred student is enrolled. A school year of pupil attendance consists of the number of days school is in session for pupil 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. Where an agreement cannot be reached, the amount shall be determined by the Indiana state board of education, 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; by
        (2) the ADM of the transferee school for the school year that ends in the calendar year in which the revenues are received.
However, for state distributions under IC 21-1-30 IC 21-3-10, or any other statute that computes the amount of a state distribution using less than the total 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 by the pupil count used to compute the state distribution.
    (h) In lieu 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. This contract is for a maximum period of five (5) years with an option to renew, and may specify a maximum number of pupils to be transferred and fix a method for determining the amount of transfer tuition and the time of payment, which may be different from that provided in section 9 of this chapter.
    (i) If the school corporation can meet the requirements of IC 21-1-30-5, it may negotiate transfer tuition agreements with a neighboring school corporation that can accommodate additional students. Agreements under this section may be for one (1) year or longer and may 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 9 of this chapter. A school corporation may not transfer a student under this section without the prior approval of the child's parent or guardian.
    (j) If a school corporation experiences a net financial impact with regard to transfer tuition that is negative for a particular school year as described in IC 6-1.1-19-5.1, the school corporation may appeal for an excessive levy as provided under IC 6-1.1-19-5.1.
SOURCE: IC 20-14-10-14; (02)IN1003.1.189. -->     SECTION 189. IC 20-14-10-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. All property owned by a lessor corporation contracting with a public corporation or corporations under this chapter, and all stock and other securities including the interest or dividends issued by a lessor corporation, are exempt from all state, county, and other taxes, including gross income taxes, but excluding the financial institutions tax and the inheritance taxes. The rental paid to a lessor corporation under the terms of a lease is exempt from gross income tax.
SOURCE: IC 21-2-12-6.1; (02)IN1003.1.190. -->     SECTION 190. IC 21-2-12-6.1, AS AMENDED BY P.L.3-2000, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6.1. (a) The county supplemental school financing tax revenues shall be deposited in the county supplemental school distribution fund. In addition, for purposes of allocating distributions of tax revenues collected under IC 6-5-10, IC 6-5-11,

IC 6-5.5, IC 6-6-5, IC 6-6-5.5, or IC 6-6-6.5, the county supplemental school financing tax shall be treated as if it were property taxes imposed by a separate taxing unit. Thus, the appropriate portion of those distributions shall be deposited in the county supplemental school distribution fund.
    (b) The entitlement of each school corporation from the county supplemental school distribution fund for each calendar year after 2000 shall be the greater of:
        (1) the amount of its entitlement for the calendar year 2000 from the tax levied under this chapter; or
        (2) an amount equal to twenty-seven dollars and fifty cents ($27.50) times its ADM.

SOURCE: IC 21-3-1.7-2; (02)IN1003.1.191. -->     SECTION 191. IC 21-3-1.7-2, AS AMENDED BY P.L.181-1999, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. As used in this chapter, "excise tax revenue" means the amount of:
        (1) financial institution excise tax revenue (IC 6-5-10, IC 6-5-11, IC 6-5-12) (or the amount of any distribution by the state to replace these taxes); (IC 6-5.5); plus
        (2) the motor vehicle excise taxes (IC 6-6-5) and the commercial vehicle excise taxes (IC 6-6-5.5);
the school corporation received for deposit in the school corporation's general fund in a year.
SOURCE: IC 21-3-1.7-6.8; (02)IN1003.1.192. -->     SECTION 192. IC 21-3-1.7-6.8, AS AMENDED BY P.L.291-2001, SECTION 94, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6.8. A school corporation's target general fund property tax rate for purposes of IC 6-1.1-19-1.5 is the result determined under STEP THREE of the following formula:
        STEP ONE: This STEP applies only if the amount determined in STEP FIVE of the formula in section 6.7(b) of this chapter minus the result determined in STEP ONE of the formula in section 6.7(b) of this chapter is greater than zero (0). Determine the result under clause (E) of the following formula:
            (A) Divide the school corporation's 2002 assessed valuation by the school corporation's current ADM.
            (B) Divide the clause (A) result by ten thousand (10,000).
            (C) Determine the greater of the following:
                (i) The clause (B) result.
                (ii) Thirty-nine dollars ($39) in 2002 and thirty-nine dollars and seventy-five cents ($39.75) eighty-four dollars and eighty cents ($84.80) in 2003.
            (D) Determine the result determined under item (ii) of the following formula:
                (i) Subtract the result determined in STEP ONE of the formula in section 6.7(b) of this chapter from the amount determined in STEP FIVE of the formula in section 6.7(b) of this chapter.
                (ii) Divide the item (i) result by the school corporation's current ADM.
            (E) Divide the clause (D) result by the clause (C) result.
            (F) Divide the clause (E) result by one hundred (100).
        STEP TWO: This STEP applies only if the amount determined in STEP FIVE of the formula in section 6.7(b) of this chapter is equal to STEP ONE of the formula in section 6.7(b) of this chapter and the result of clause (A) is greater than zero (0). Determine the result under clause (G) of the following formula:
            (A) Add the following:
                (i) An amount equal to the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years.
                (ii) The original amount of any excessive tax levy the school corporation imposed as a result of the passage, during the preceding year, of a referendum under IC 6-1.1-19-4.5(c) for taxes first due and payable during the year.
                (iii) The portion of the maximum general fund levy for the year that equals the original amount of the levy imposed by the school corporation to cover the costs of opening a new school facility during the preceding year.
            (B) Divide the clause (A) result by the school corporation's current ADM.
            (C) Divide the school corporation's 2002 assessed valuation by the school corporation's current ADM.
            (D) Divide the clause (C) result by ten thousand (10,000).
            (E) Determine the greater of the following:
                (i) The clause (D) result.
                (ii) Thirty-nine dollars ($39) in 2002 and thirty-nine dollars and seventy-five cents ($39.75) eighty-four dollars and eighty cents ($84.80) in 2003.
            (F) Divide the clause (B) result by the clause (E) amount.
            (G) Divide the clause (F) result by one hundred (100).
        STEP THREE: Determine the sum of:
            (A) ninety-one and eight-tenths cents ($0.918) in 2002; and
            (B) ninety-five and eight-tenths cents ($0.958) forty-seven and seventy-five hundredths cents ($0.4775) in 2003; and
        if applicable, the STEP ONE or STEP TWO result.
SOURCE: IC 21-3-1.7-8; (02)IN1003.1.193. -->     SECTION 193. IC 21-3-1.7-8, AS AMENDED BY P.L.291-2001, SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. Notwithstanding IC 21-3-1.6 and subject to section 9 of this chapter, the state distribution for a calendar year for tuition support for basic programs for each school corporation equals the result determined using the following formula:
        STEP ONE:
            (A) For a school corporation not described in clause (B), determine the school corporation's result under STEP FIVE of section 6.7(b) of this chapter for the calendar year.
            (B) For a school corporation that has target revenue per adjusted ADM for a calendar year that is equal to the amount under STEP ONE (A) of section 6.7(b) of this chapter, determine the sum of:
                (i) the school corporation's result under STEP ONE of section 6.7(b) of this chapter for the calendar year; plus
                (ii) the amount of the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years; plus
                (iii) the original amount of an excessive tax levy the school corporation imposed as a result of the passage, during the preceding year, of a referendum under IC 6-1.1-19-4.5(c) for taxes first due and payable during the year; plus
                (iv) the part of the maximum general fund levy for the year that equals the original amount of the levy imposed by the school corporation to cover the costs of opening a new school facility during the preceding year.
        STEP TWO: Determine the remainder of:
            (A) the STEP ONE amount; minus
            (B) for calendar year 2002, the sum of:
                (i) the school corporation's tuition support levy; plus
                (ii) the school corporation's excise tax revenue for the year that precedes the current year by one (1) year; or
            (C) for calendar year 2003, the sum of:
                (i) the school corporation's tuition support levy; plus
                (ii) the school corporation's excise tax revenue for the year immediately preceding the current year divided by two (2).

If the state tuition support determined for a school corporation under this section is negative, the school corporation is not entitled to any

state tuition support. In addition, the school corporation's maximum general fund levy under IC 6-1.1-19-1.5 shall be reduced by the amount of the negative result.

SOURCE: IC 21-3-1.7-9; (02)IN1003.1.194. -->     SECTION 194. IC 21-3-1.7-9, AS AMENDED BY P.L.291-2001, SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. (a) Subject to the amount appropriated by the general assembly for tuition support, the amount that a school corporation is entitled to receive in tuition support for a year is the amount determined in section 8 of this chapter.
    (b) If the total amount to be distributed as tuition support under this chapter, for enrollment adjustment grants under section 9.5 of this chapter, for at-risk programs under section 9.7 of this chapter, for academic honors diploma awards under section 9.8 of this chapter, and for primetime distributions under IC 21-1-30 and as special and vocational education grants under IC 21-3-1.8-3 or IC 21-3-10 for a particular year, exceeds:
        (1) three billion three hundred sixty-three million four hundred thousand dollars ($3,363,400,000) in 2001;
        (2) three billion four hundred seventy-one million one hundred thousand dollars ($3,471,100,000) in 2002; and
        (3) three billion five hundred ninety-four million two hundred thousand dollars ($3,594,200,000) four billion six hundred million nine hundred thousand dollars ($4,600,900,000) in 2003;
the amount to be distributed for tuition support under this chapter to each school corporation during each of the last six (6) months of the year shall be reduced by the same dollar amount per ADM (as adjusted by IC 21-3-1.6-1.1) so that the total reductions equal the amount of the excess.
SOURCE: IC 21-4-20-1; (02)IN1003.1.195. -->     SECTION 195. IC 21-4-20-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. Whenever it is found by the board of school trustees or other proper authorities of any school city or school town that an emergency exists for the borrowing of money with which to meet the current expenses of the schools of such school town or school city, the board of school trustees or other proper authorities of such school city or school town may make temporary loans in anticipation of the current revenues of such school town or school city to an amount not exceeding fifty per cent (50%) of the amount of:
         (1) taxes actually levied and in the course of collection; and
        (2) state tuition support received;

for the fiscal year in which such loans are made. Revenues shall be deemed to be current and taxes shall be deemed to have been actually levied and in the course of collection when the budget levy and rate shall have been finally approved by the state board of tax commissioners: Provided, department of local government finance. However, That in all second and third class school cities, no such loans shall be borrowed in excess of the sum of twenty thousand dollars ($20,000) until the letting of the same shall have been advertised once each week for two (2) successive weeks in two (2) newspapers of general circulation published in such school city, and until sealed bids have been submitted at a regular meeting of the school board of such school city, pursuant to such notices, stipulating the rate of interest to be charged by such bidder. and Provided, further, That Such school loans shall be made with the bidder submitting the lowest rate of interest and submitting with his the bidder's bid an affidavit showing that no collusion exists between himself the bidder and any other bidder for such loan.
SOURCE: IC 21-5-11-14; (02)IN1003.1.196. -->     SECTION 196. IC 21-5-11-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. All property owned by a lessor corporation so contracting with such school corporation or corporations under the provisions of this chapter, and all stock and other securities including the interest or dividends thereon issued by a lessor corporation, shall be exempt from all state, county, and other taxes, including the gross income tax, except, however, the financial institutions tax (IC 6-5.5) and inheritance taxes The rental paid to a lessor corporation under the terms of such a contract of lease shall be exempt from the gross income tax. (IC 6-4.1).
SOURCE: IC 25-37-1-4; (02)IN1003.1.197. -->     SECTION 197. IC 25-37-1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. Any transient merchant desiring to transact business in any county in this state shall file application for a license for that purpose with the auditor of the county in this state in which such transient merchant desires to do business. The application shall state the following facts:
    (a) The name, residence and post-office address of the person, firm, limited liability company, or corporation making the application, and if a firm, limited liability company, or corporation, the name and address of the members of the firm or limited liability company, or officers of the corporation, as the case may be.
    (b) If the applicant is a corporation or limited liability company then there shall be stated on the application form the date of incorporation or organization, the state of incorporation or organization, and if the applicant is a corporation or limited liability company formed in a state

other than the state of Indiana, the date on which such corporation or limited liability company qualified to transact business as a foreign corporation or foreign limited liability company in the state of Indiana.
    (c) A statement showing the kind of business proposed to be conducted, the length of time for which the applicant desires to transact business, and if for the purpose of transacting such business any permanent or mobile building, structure or real estate is to be used for the exhibition by means of samples, catalogues, photographs and price lists or sale of goods, wares or merchandise, the location of such proposed place of business.
    (d) A detailed inventory and description of such goods, wares, and merchandise to be offered for sale or sold, the manner in which the same is to be advertised for sale and the representations to be made in connection therewith, the names of the persons from whom the goods, wares, and merchandise so to be advertised or represented were obtained, the date of receipt of such goods, wares, and merchandise by the applicant for the license, the place from which the same were last taken, and any and all details necessary to locate and identify all goods, wares and merchandise to be sold.
    (e) Attached to the application shall be a receipt showing that personal property taxes on the goods, wares and merchandise to be offered for sale or sold have been paid.
    (f) Attached to the application shall be a copy of a notice, which ten (10) days before said application has been filed, shall have been mailed by registered mail by the applicant to the Indiana department of state revenue. of the state of Indiana or such other department as may be charged with the duty of collecting gross income taxes or other taxes of a comparable nature or which may be in lieu of such gross income taxes. The said notice shall state the precise period of time and location from which said applicant intends to transact business, the approximate value of the goods, wares, and merchandise to be offered for sale or sold, and such other information as the Indiana department of state revenue of the state of Indiana or its successor may request or by regulation require.
    (g) Said application shall be verified.

SOURCE: IC 27-1-18-2; (02)IN1003.1.198. -->     SECTION 198. IC 27-1-18-2, AS AMENDED BY P.L.144-2000, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) Every insurance company not organized under the laws of this state and each domestic company electing to be taxed under this section, and doing business within this state shall, on or before March 1 of each year, report to the department, under the oath of the president and secretary, the gross amount of all

premiums received by it on policies of insurance covering risks within this state, or in the case of marine or transportation risks, on policies made, written, or renewed within this state during the twelve (12) month period ending on December 31 of the preceding calendar year. From the amount of gross premiums described in this subsection shall be deducted:
        (1) considerations received for reinsurance of risks within this state from companies authorized to transact an insurance business in this state;
        (2) the amount of dividends paid or credited to resident insureds, or used to reduce current premiums of resident insureds;
        (3) the amount of premiums actually returned to residents on account of applications not accepted or on account of policies not delivered; and
        (4) the amount of unearned premiums returned on account of the cancellation of policies covering risks within the state.
    (b) A domestic company shall be taxed under this section only in each calendar year with respect to which it files a notice of election. The notice of election shall be filed with the insurance commissioner and the commissioner of the department of state revenue on or before November 30 in each year and shall state that the domestic company elects to submit to the tax imposed by this section with respect to the calendar year commencing January 1 next following the filing of the notice. The exemption from license fees, privilege, or other taxes accorded by this section to insurance companies not organized under the laws of this state and doing business within this state which are taxed under this chapter shall be applicable to each domestic company in each calendar year with respect to which it is taxed under this section. In each calendar year with respect to which a domestic company has not elected to be taxed under this section it shall be taxed without regard to this section.
    (c) (b) For the privilege of doing business in this state, every insurance company required to file the report provided in this section shall pay into the treasury of this state an amount equal to the excess, if any, of the gross premiums over the allowable deductions multiplied by the following rate for the year that the report covers:
        (1) For 2000, two percent (2%).
        (2) For 2001, one and nine-tenths percent (1.9%).
        (3) For 2002, one and eight-tenths percent (1.8%).
        (4) For 2003, one and seven-tenths percent (1.7%).
        (5) For 2004, one and five-tenths percent (1.5%).
        (6) For 2005 and thereafter, one and three-tenths percent (1.3%).


    (d) (c) Payments of the tax imposed by this section shall be made on a quarterly estimated basis. The amounts of the quarterly installments shall be computed on the basis of the total estimated tax liability for the current calendar year and the installments shall be due and payable on or before April 15, June 15, September 15, and December 15, of the current calendar year.
    (e) (d) Any balance due shall be paid in the next succeeding calendar year at the time designated for the filing of the annual report with the department.
    (f) (e) Any overpayment of the estimated tax during the preceding calendar year shall be allowed as a credit against the liability for the first installment of the current calendar year.
    (g) (f) In the event a an insurance company subject to taxation under this section fails to make any quarterly payment in an amount equal to at least:
        (1) twenty-five percent (25%) of the total tax paid during the preceding calendar year; or
        (2) twenty percent (20%) of the actual tax for the current calendar year;
the company shall be liable, in addition to the amount due, for interest in the amount of one percent (1%) of the amount due and unpaid for each month or part of a month that the amount due, together with interest, remains unpaid. This interest penalty shall be exclusive of and in addition to any other fee, assessment, or charge made by the department.
    (h) (g) The taxes under this article shall be in lieu of all license fees or privilege or other tax levied or assessed by this state or by any municipality, county, or other political subdivision of this state. No municipality, county, or other political subdivision of this state shall impose any license fee or privilege or other tax upon any insurance company or any of its agents for the privilege of doing an insurance business therein, except the tax authorized by IC 22-12-6-5. However, the taxes authorized under IC 22-12-6-5 shall be credited against the taxes provided under this chapter. This section shall not be construed to prohibit the levy and collection of state, county, or municipal taxes upon real and tangible personal property of such company, or to prohibit the levy of any retaliatory tax, fine, penalty, or fee provided by law. However, all insurance companies, foreign or domestic, paying taxes in this state predicated in part on their premium income from policies sold and premiums received in Indiana shall have the same rights and privileges from further taxation and shall be given the same

credits wherever applicable as those set out for those companies paying only a tax on premiums as set out in this section.
    (i) (h) Any insurance company failing or refusing, for more than thirty (30) days, to render an accurate account of its premium receipts as provided in this section and pay the tax due thereon shall be subject to a penalty of one hundred dollars ($100) for each additional day such report and payment shall be delayed, not to exceed a maximum penalty of ten thousand dollars ($10,000). The penalty may be ordered by the commissioner after a hearing under IC 4-21.5-3. The commissioner may revoke all authority of such defaulting company to do business within this state, or suspend such authority during the period of such default, in the discretion of the commissioner.

SOURCE: IC 27-6-8-15; (02)IN1003.1.199. -->     SECTION 199. IC 27-6-8-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. (a) Member insurers, which during any preceding calendar year shall have paid one (1) or more assessments levied pursuant to section 7 of this chapter, shall be allowed a credit against premium taxes, corporate gross income taxes, adjusted gross income taxes, supplemental corporate net income tax, or any combination thereof, or similar taxes upon revenue or income of member insurers which may be imposed by the state, up to twenty percent (20%) of the assessment described in section 7 of this chapter for each calendar year following the year the assessment was paid until the aggregate of all assessments paid to the guaranty association shall have been offset by either credits against such taxes or refunds from the association. The provisions herein are applicable to all assessments levied after the passage of this article.
    (b) To the extent a member insurer elects not to utilize the tax credits authorized by subsection (a), the member insurer may utilize the provisions of this subsection (c) as a secondary method of recoupment.
    (c) The rates and premiums charged for insurance policies to which this chapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association and the rates shall not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer.
SOURCE: IC 27-8-8-16; (02)IN1003.1.200. -->     SECTION 200. IC 27-8-8-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. Member insurers who, during any preceding calendar year, have paid one (1) or more assessments levied under this chapter may either:
        (1) take as a credit against premium taxes, gross income taxes, adjusted gross income taxes, supplemental corporate net income

tax, or any combination of them or similar taxes upon revenue or income of member insurers that may be imposed by Indiana up to twenty percent (20%) of an assessment described in section 6 of this chapter for each calendar year following the year in which those assessments were paid until the aggregate of those assessments have been offset by either credits against those taxes or refunds from the association; or
        (2) include in the rates and premiums charged for insurance policies to which this chapter applies amounts sufficient to recoup a sum equal to the amounts paid to the association by the member less any amounts returned to the member insurer by the association and the rates are not excessive by virtue of including an amount reasonably calculated to recoup assessments paid by the member.

SOURCE: IC 27-8-10-2.1; (02)IN1003.1.201. -->     SECTION 201. IC 27-8-10-2.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2.1. (a) There is established a nonprofit legal entity to be referred to as the Indiana comprehensive health insurance association, which must assure that health insurance is made available throughout the year to each eligible Indiana resident applying to the association for coverage. All carriers, health maintenance organizations, limited service health maintenance organizations, and self-insurers providing health insurance or health care services in Indiana must be members of the association. The association shall operate under a plan of operation established and approved under subsection (c) and shall exercise its powers through a board of directors established under this section.
    (b) The board of directors of the association consists of seven (7) members whose principal residence is in Indiana selected as follows:
        (1) Three (3) members to be appointed by the commissioner from the members of the association, one (1) of which must be a representative of a health maintenance organization.
        (2) Two (2) members to be appointed by the commissioner shall be consumers representing policyholders.
        (3) Two (2) members shall be the state budget director or designee and the commissioner of the department of insurance or designee.
The commissioner shall appoint the chairman of the board, and the board shall elect a secretary from its membership. The term of office of each appointed member is three (3) years, subject to eligibility for reappointment. Members of the board who are not state employees may be reimbursed from the association's funds for expenses incurred in attending meetings. The board shall meet at least semiannually, with the first meeting to be held not later than May 15 of each year.
    (c) The association shall submit to the commissioner a plan of operation for the association and any amendments to the plan necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation becomes effective upon approval in writing by the commissioner consistent with the date on which the coverage under this chapter must be made available. The commissioner shall, after notice and hearing, approve the plan of operation if the plan is determined to be suitable to assure the fair, reasonable, and equitable administration of the association and provides for the sharing of association losses on an equitable, proportionate basis among the member carriers, health maintenance organizations, limited service health maintenance organizations, and self-insurers. If the association fails to submit a suitable plan of operation within one hundred eighty (180) days after the appointment of the board of directors, or at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall adopt rules under IC 4-22-2 necessary or advisable to implement this section. These rules are effective until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner. The plan of operation must:
        (1) establish procedures for the handling and accounting of assets and money of the association;
        (2) establish the amount and method of reimbursing members of the board;
        (3) establish regular times and places for meetings of the board of directors;
        (4) establish procedures for records to be kept of all financial transactions, and for the annual fiscal reporting to the commissioner;
        (5) establish procedures whereby selections for the board of directors will be made and submitted to the commissioner for approval;
        (6) contain additional provisions necessary or proper for the execution of the powers and duties of the association; and
        (7) establish procedures for the periodic advertising of the general availability of the health insurance coverages from the association.
    (d) The plan of operation may provide that any of the powers and duties of the association be delegated to a person who will perform functions similar to those of this association. A delegation under this section takes effect only with the approval of both the board of directors and the commissioner. The commissioner may not approve a delegation unless the protections afforded to the insured are

substantially equivalent to or greater than those provided under this chapter.
    (e) The association has the general powers and authority enumerated by this subsection in accordance with the plan of operation approved by the commissioner under subsection (c). The association has the general powers and authority granted under the laws of Indiana to carriers licensed to transact the kinds of health care services or health insurance described in section 1 of this chapter and also has the specific authority to do the following:
        (1) Enter into contracts as are necessary or proper to carry out this chapter, subject to the approval of the commissioner.
        (2) Sue or be sued, including taking any legal actions necessary or proper for recovery of any assessments for, on behalf of, or against participating carriers.
        (3) Take legal action necessary to avoid the payment of improper claims against the association or the coverage provided by or through the association.
        (4) Establish a medical review committee to determine the reasonably appropriate level and extent of health care services in each instance.
        (5) Establish appropriate rates, scales of rates, rate classifications and rating adjustments, such rates not to be unreasonable in relation to the coverage provided and the reasonable operational expenses of the association.
        (6) Pool risks among members.
        (7) Issue policies of insurance on an indemnity or provision of service basis providing the coverage required by this chapter.
        (8) Administer separate pools, separate accounts, or other plans or arrangements considered appropriate for separate members or groups of members.
        (9) Operate and administer any combination of plans, pools, or other mechanisms considered appropriate to best accomplish the fair and equitable operation of the association.
        (10) Appoint from among members appropriate legal, actuarial, and other committees as necessary to provide technical assistance in the operation of the association, policy and other contract design, and any other function within the authority of the association.
        (11) Hire an independent consultant.
        (12) Develop a method of advising applicants of the availability of other coverages outside the association and may promulgate a list of health conditions the existence of which would deem an

applicant eligible without demonstrating a rejection of coverage by one (1) carrier.
        (13) Provide for the use of managed care plans for insureds, including the use of:
            (A) health maintenance organizations; and
            (B) preferred provider plans.
        (14) Solicit bids directly from providers for coverage under this chapter.
    (f) Rates for coverages issued by the association may not be unreasonable in relation to the benefits provided, the risk experience, and the reasonable expenses of providing the coverage. Separate scales of premium rates based on age apply for individual risks. Premium rates must take into consideration the extra morbidity and administration expenses, if any, for risks insured in the association. The rates for a given classification may not be more than one hundred fifty percent (150%) of the average premium rate for that class charged by the five (5) carriers with the largest premium volume in the state during the preceding calendar year. In determining the average rate of the five (5) largest carriers, the rates charged by the carriers shall be actuarially adjusted to determine the rate that would have been charged for benefits identical to those issued by the association. All rates adopted by the association must be submitted to the commissioner for approval.
    (g) Following the close of the association's fiscal year, the association shall determine the net premiums, the expenses of administration, and the incurred losses for the year. Any net loss shall be assessed by the association to all members in proportion to their respective shares of total health insurance premiums, excluding premiums for Medicaid contracts with the state of Indiana, received in Indiana during the calendar year (or with paid losses in the year) coinciding with or ending during the fiscal year of the association or any other equitable basis as may be provided in the plan of operation. For self-insurers, health maintenance organizations, and limited service health maintenance organizations that are members of the association, the proportionate share of losses must be determined through the application of an equitable formula based upon claims paid, excluding claims for Medicaid contracts with the state of Indiana, or the value of services provided. In sharing losses, the association may abate or defer in any part the assessment of a member, if, in the opinion of the board, payment of the assessment would endanger the ability of the member to fulfill its contractual obligations. The association may also provide for interim assessments against members of the association if necessary to assure the financial capability of the association to meet the incurred

or estimated claims expenses or operating expenses of the association until the association's next fiscal year is completed. Net gains, if any, must be held at interest to offset future losses or allocated to reduce future premiums. Assessments must be determined by the board members specified in subsection (b)(1), subject to final approval by the commissioner.
    (h) The association shall conduct periodic audits to assure the general accuracy of the financial data submitted to the association, and the association shall have an annual audit of its operations by an independent certified public accountant.
    (i) The association is subject to examination by the department of insurance under IC 27-1-3.1. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner.
    (j) All policy forms issued by the association must conform in substance to prototype forms developed by the association, must in all other respects conform to the requirements of this chapter, and must be filed with and approved by the commissioner before their use.
    (k) The association may not issue an association policy to any individual who, on the effective date of the coverage applied for, does not meet the eligibility requirements of section 5.1 of this chapter.
    (l) The association shall pay an agent's referral fee of twenty-five dollars ($25) to each insurance agent who refers an applicant to the association if that applicant is accepted.
    (m) The association and the premium collected by the association shall be exempt from the premium tax, the gross income tax, the adjusted gross income tax, supplemental corporate net income, or any combination of these or similar taxes upon revenues or income that may be imposed by the state.
    (n) Members who after July 1, 1983, during any calendar year, have paid one (1) or more assessments levied under this chapter may either:
        (1) take a credit against premium taxes, gross income taxes, adjusted gross income taxes, supplemental corporate net income taxes, or any combination of these or similar taxes upon revenues or income of member insurers that may be imposed by the state, up to the amount of the taxes due for each calendar year in which the assessments were paid and for succeeding years until the aggregate of those assessments have been offset by either credits against those taxes or refunds from the association; or
        (2) any member insurer may include in the rates for premiums charged for insurance policies to which this chapter applies amounts sufficient to recoup a sum equal to the amounts paid to

the association by the member less any amounts returned to the member insurer by the association, and the rates shall not be deemed excessive by virtue of including an amount reasonably calculated to recoup assessments paid by the member.
    (o) The association shall provide for the option of monthly collection of premiums.

SOURCE: IC 27-13-18-2; (02)IN1003.1.202. -->     SECTION 202. IC 27-13-18-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) If for any reason the plan of the health maintenance organization under IC 27-13-16 does not provide for continuation of benefits as required by IC 27-13-16-1, the liquidator shall assess, or cause to be assessed, each licensed health maintenance organization doing business in Indiana. The amount that each licensed health maintenance organization is assessed must be based on the ratio of the amount of all subscriber premiums received by the health maintenance organization for contracts issued in Indiana for the previous calendar year to the amount of the total subscriber premiums received by all licensed health maintenance organizations for contracts issued in Indiana for the previous calendar year.
    (b) The total assessments of health maintenance organizations under subsection (a) must equal an amount sufficient to provide for continuation of benefits as required by IC 27-13-16-1 to enrollees covered under contracts issued by the health maintenance organization to subscribers located in Indiana, and to pay administrative expenses.
    (c) The total amount of all assessments to be paid by a health maintenance organization in any one (1) calendar year may not exceed one percent (1%) of the premiums received by the health maintenance organization from business in Indiana during the calendar year preceding the assessment.
    (d) If the total amount of all assessments in any one (1) calendar year does not provide an amount sufficient to meet the requirements of subsection (a), additional funds must be assessed in succeeding calendar years.
    (e) Health maintenance organizations that, during any preceding calendar year, have paid one (1) or more assessments levied under this section may either:
        (1) take as a credit against gross income taxes, adjusted gross income taxes supplemental corporate net income taxes, or any combination of these, or similar taxes upon revenue or income of health maintenance organizations that may be imposed by Indiana up to twenty percent (20%) of any assessment described in this section for each calendar year following the year in which those

assessments were paid until the aggregate of those assessments have been offset; or
        (2) include in the premiums charged for coverage to which this article applies amounts sufficient to recoup a sum equal to the amounts paid in assessments as long as the premiums are not excessive by virtue of including an amount reasonably calculated to recoup assessments paid by the health maintenance organization.

SOURCE: IC 29-2-2-1; (02)IN1003.1.203. -->     SECTION 203. IC 29-2-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) In all counties of this state containing a voting population of over seven thousand (7,000), as shown by the vote cast for secretary of state at the last preceding election, the judge of the circuit court of each of said counties, when he shall find:
        (1) that the probate business of his court requires it;
        (2) that the interests of heirs under the age of eighteen (18) years and other beneficiaries of estates, guardianships, receiverships, and other trusts pending in said court will be protected and subserved thereby; and
        (3) that the same is demanded for the proper protection of such interests;
shall cause such finding to be entered of record, and thereupon shall appoint some competent person as probate commissioner of such court.
    (b) In such finding and order of appointment, on proof first heard in open court, the judge shall fix and specify the annual salary of such commissioner. and the time of payment thereof and shall thereupon cause to be certified to the auditor of such county a copy of such finding and order, which shall be sufficient authority for said auditor to draw his warrant for the payment thereof at the times and in the amounts in said record set forth.
SOURCE: IC 29-2-2-2; (02)IN1003.1.204. -->     SECTION 204. IC 29-2-2-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. Said commissioner shall take and subscribe an oath for the faithful discharge of his the commissioner's duties, and shall hold his office for the term of four (4) years, subject to the provisions of this chapter, and for his services as such commissioner, the commissioner shall receive or be allowed no fees, emoluments, or compensation whatever other than the salary fixed by said court, and required to be paid out of the treasury of said county as aforesaid, and which salary shall not be increased during his said the commissioner's term of office.
SOURCE: IC 29-3-3-3; (02)IN1003.1.205. -->     SECTION 205. IC 29-3-3-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. Except as

otherwise determined in a dissolution of marriage proceeding, a custody proceeding, or in some other proceeding authorized by law, including a proceeding under section 6 of this chapter or another proceeding under this article, and unless a minor is married, the parents of the minor jointly (or the survivor if one (1) parent is deceased), if not an incapacitated person, have, without the appointment of a guardian, giving of bond, or order or confirmation of court, the right to custody of the person of the minor and the power to execute the following on behalf of the minor:
        (1) Consent to the application of subsection (c) of Section 2032A of the Internal Revenue Code, which imposes personal liability for payment of the tax under that Section.
        (2) Consent to the application of Section 6324A of the Internal Revenue Code, which attaches a lien to property to secure payment of taxes deferred under Section 6166 of the Internal Revenue Code.
        (3) Any other consents, waivers, or powers of attorney provided for under the Internal Revenue Code.
        (4) Waivers of notice permissible with reference to proceedings under IC 29-1.
        (5) Consents, waivers of notice, or powers of attorney under any statute, including the Indiana inheritance tax law (IC 6-4.1) the Indiana gross income tax law (IC 6-2.1), and the Indiana adjusted gross income tax law (IC 6-3).
        (6) Consent to unsupervised administration as provided in IC 29-1-7.5.
        (7) Federal and state income tax returns.
        (8) Consent to medical or other professional care, treatment, or advice for the minor's health and welfare.

SOURCE: IC 31-31-8-3; (02)IN1003.1.206. -->     SECTION 206. IC 31-31-8-3, AS AMENDED BY P.L.273-1999, SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) The juvenile court may establish juvenile detention and shelter care facilities for children, except as provided by IC 31-31-9.
    (b) The court may contract with other agencies to provide juvenile detention and shelter care facilities.
    (c) If the juvenile court operates the juvenile detention and shelter care facilities, the judge shall appoint staff and determine the budgets.
    (d) The county shall pay all expenses. The expenses for the juvenile detention facility shall be paid from the county general fund. Payment of the expenses for the juvenile detention facility may not be paid from the county family and children's fund established by IC 12-19-7-3.
SOURCE: IC 31-31-8-4; (02)IN1003.1.207. -->     SECTION 207. IC 31-31-8-4, AS AMENDED BY P.L.273-1999, SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) This section applies to a county having a population of more than one hundred seven thousand (107,000) but less than one hundred eight thousand (108,000).
    (b) Notwithstanding section 3 of this chapter, the juvenile court shall operate a juvenile detention facility or juvenile shelter care facility established in the county. However, the county legislative body shall determine the budget for the juvenile detention facility or juvenile shelter care facility. The expenses for the juvenile detention facility shall be paid from the county general fund. Payment of the expenses for the juvenile detention facility may not be paid from the county family and children's fund established by IC 12-19-7-3.
SOURCE: IC 31-34-18-1.3; (02)IN1003.1.208. -->     SECTION 208. IC 31-34-18-1.3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1.3. (a) The individuals participating in a meeting described in section 1.1 of this chapter shall assist the person preparing the report in recommending the care, treatment, rehabilitation, or placement of the child.
    (b) The individuals shall inform the person preparing the report of resources and programs that are available for the child.
     (c) The probation officer or caseworker shall collect, maintain, and complete financial eligibility forms designated by the director to assist in obtaining federal reimbursement and other reimbursement.
SOURCE: IC 31-34-18-3; (02)IN1003.1.209. -->     SECTION 209. IC 31-34-18-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The probation officer or caseworker shall also collect information and prepare a financial report, in the form prescribed by the division, on the parent or the estate of the child to assist the juvenile court and the county office in:
         (1) determining the person's financial responsibility; and
        (2) obtaining federal reimbursement;

for services provided for the child or the person.
SOURCE: IC 31-34-24-4; (02)IN1003.1.210. -->     SECTION 210. IC 31-34-24-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) Before March 1, 1998, each county shall establish a team to develop a plan as described in this chapter.
    (b) The team is composed of the following members, each of whom serves at the pleasure of the member's appointing authority:
        (1) Two (2) members appointed by the judge or judges of the juvenile court, one (1) of whom is a representative of the probation department.
        (2) Two (2) members appointed by the director of the county office as follows:
            (A) One (1) is a member of the child welfare staff of the county office.
            (B) One (1) is either:
                (i) an interested resident of the county; or
                (ii) a representative of a social service agency;
            who knows of child welfare needs and services available to residents of the county.
        (3) One (1) member appointed by the superintendent of the largest school corporation in the county.
        (4) If:
            (A) two (2) school corporations are located within the county, one (1) member appointed by the superintendent of the second largest school corporation in the county; or
            (B) more than two (2) school corporations are located within the county, one (1) member appointed by the county fiscal body as a representative of school corporations other than the largest school corporation in the county.
        (5) One (1) member appointed by the county fiscal body.
        (6) (5) One (1) member representing the community mental health center (as defined under IC 12-7-2-38) serving the county, appointed by the director of the community mental health center. However, if more than one (1) community mental health center serves the county, the member shall be appointed by the county fiscal body.
        (7) (6) One (1) or more additional members appointed by the chairperson of the team, county director, from among interested or knowledgeable residents of the community or representatives of agencies providing social services to or for children in the county.
SOURCE: IC 31-34-24-8; (02)IN1003.1.211. -->     SECTION 211. IC 31-34-24-8, AS AMENDED BY P.L.273-1999, SECTION 101, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. In preparing the plan, the team shall review and consider existing publicly and privately funded programs that are available or that could be made available in the county to provide supportive services to or for the benefit of children described in section 3 of this chapter without removing the child from the family home, including programs funded through the following:
        (1) Title IV-B of the Social Security Act (42 U.S.C. 620 et seq.).
        (2) Title IV-E of the Social Security Act (42 U.S.C. 670 et seq.).
        (3) Title XX of the Social Security Act (42 U.S.C. 1397 et seq.).
        (4) The Child Abuse Prevention and Treatment Act (42 U.S.C. 5106 et seq.).
        (5) Community corrections programs under IC 11-12.
        (6) Special education programs under IC 20-1-6-19.
        (7) All programs designed to prevent child abuse, neglect, or delinquency, or to enhance child welfare and family preservation administered by, or through funding provided by, the division of family and children, county offices, prosecutors, or juvenile courts, including child services and programs funded under IC 12-19-7 and IC 31-40.
        (8) Probation user's fees under IC 31-40-2-1.
        (9) Child advocacy fund under IC 12-17-17.
SOURCE: IC 31-34-24-11; (02)IN1003.1.212. -->     SECTION 212. IC 31-34-24-11, AS AMENDED BY P.L.273-1999, SECTION 103, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. The director or the state superintendent of public instruction may, not later than thirty (30) days after receiving the plan, transmit to the team and the county fiscal body director any comments, including recommendations for modification of the plan, that the director or the state superintendent of public instruction considers appropriate.
SOURCE: IC 31-34-24-12; (02)IN1003.1.213. -->     SECTION 213. IC 31-34-24-12, AS AMENDED BY P.L.273-1999, SECTION 104, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. Not later than sixty (60) days after receiving the plan, the county fiscal body director shall do one (1) of the following:
        (1) Approve the plan as submitted by the team.
        (2) Approve the plan with amendments, modifications, or revisions adopted by the county fiscal body.
        (3) (2) Return the plan to the team with directions concerning:
            (A) subjects for further study and reconsideration; and
            (B) resubmission of a revised plan.
SOURCE: IC 31-34-24-13; (02)IN1003.1.214. -->     SECTION 214. IC 31-34-24-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 13. (a) Upon receiving the initial plan and each revised or updated plan, the county fiscal body director shall consider the plan in developing the family and children's fund budget for the delivery of child services in the county.
    (b) The county fiscal body may appropriate from the family and children's fund any amounts necessary to provide funding to implement the plan.
SOURCE: IC 31-34-24-14; (02)IN1003.1.215. -->     SECTION 215. IC 31-34-24-14, AS AMENDED BY P.L.273-1999, SECTION 105, IS AMENDED TO READ AS FOLLOWS

[EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) The team shall meet at least one (1) time each year to do the following:
        (1) Develop, review, or revise a strategy that identifies:
            (A) the manner in which prevention and early intervention services will be provided or improved;
            (B) how local collaboration will improve children's services; and
            (C) how different funds can be used to serve children and families more effectively.
        (2) Reorganize as needed and select its vice chairperson for the ensuing year.
        (3) Review the implementation of the plan and prepare revisions, additions, or updates of the plan that the team considers necessary or appropriate to improve the quality and efficiency of early intervention child welfare services provided in accordance with the plan.
        (4) Prepare and submit to the county fiscal body director and the superintendent of public instruction a report on the operations of the plan during the preceding year and a revised and updated plan for the ensuing year.
    (b) The chairperson or vice chairperson of the team or the county fiscal body may convene any additional meetings of the team that are, in the chairperson's or vice chairperson's opinion, necessary or appropriate.

SOURCE: IC 31-34-24-15; (02)IN1003.1.216. -->     SECTION 216. IC 31-34-24-15, AS AMENDED BY P.L.273-1999, SECTION 106, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. The team or the county fiscal body shall transmit copies of the plan, each annual report, and each revised plan to the following:
        (1) The director.
        (2) The state superintendent of public instruction.
        (3) The county office.
        (4) The juvenile court.
        (5) The superintendent of each public school corporation in the county.
        (6) The local step ahead council.
        (7) Any public or private agency that:
            (A) provides services to families and children in the county that requests information about the plan; or
            (B) the team has identified as a provider of services relevant to the plan.
SOURCE: IC 31-34-24-16; (02)IN1003.1.217. -->     SECTION 217. IC 31-34-24-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. The team or

the county fiscal body shall publicize to residents of the county the existence and availability of the plan.

SOURCE: IC 31-37-24-4; (02)IN1003.1.218. -->     SECTION 218. IC 31-37-24-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) Before March 1, 1998, each county shall establish a team to develop a plan as described in this chapter.
    (b) The team is composed of the following members, each of whom serves at the pleasure of the member's appointing authority:
        (1) Two (2) members appointed by the judge or judges of the juvenile court, one (1) of whom is a representative of the probation department.
        (2) Two (2) members appointed by the director of the county office as follows:
            (A) One (1) is a member of the child welfare staff of the county office.
            (B) One (1) is either:
                (i) an interested resident of the county; or
                (ii) a representative of a social service agency;
            who knows of child welfare needs and services available to residents of the county.
        (3) One (1) member appointed by the superintendent of the largest school corporation in the county.
        (4) If:
            (A) two (2) school corporations are located within the county, one (1) member appointed by the superintendent of the second largest school corporation in the county; or
            (B) more than two (2) school corporations are located within the county, one (1) member appointed by the county fiscal body as a representative of school corporations other than the largest school corporation in the county.
        (5) One (1) member appointed by the county fiscal body.
        (6) (5) One (1) member representing the community mental health center (as defined under IC 12-7-2-38) serving the county, appointed by the director of the community mental health center. However, if more than one (1) community mental health center serves the county, the member shall be appointed by the county fiscal body. director.
        (7) (6) One (1) or more additional members appointed by the chairperson of the team, county director, from among interested or knowledgeable residents of the community or representatives of agencies providing social services to or for children in the county.
SOURCE: IC 31-37-24-5; (02)IN1003.1.219. -->     SECTION 219. IC 31-37-24-5, AS AMENDED BY P.L.273-1999, SECTION 110, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. If a county has in existence a committee, council, or other organized group that includes representatives of all of the appointing authorities described in section 4 of this chapter, the county fiscal body director may elect to designate that existing organization as the county's team for purposes of this chapter.
SOURCE: IC 31-37-24-8; (02)IN1003.1.220. -->     SECTION 220. IC 31-37-24-8, AS AMENDED BY P.L.273-1999, SECTION 113, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. In preparing the plan, the team shall review and consider existing publicly and privately funded programs that are available or that could be made available in the county to provide supportive services to or for the benefit of children described in section 3 of this chapter without removing the child from the family home, including programs funded through the following:
        (1) Title IV-B of the Social Security Act (42 U.S.C. 620 et seq.).
        (2) Title IV-E of the Social Security Act (42 U.S.C. 670 et seq.).
        (3) Title XX of the Social Security Act (42 U.S.C. 1397 et seq.).
        (4) The Child Abuse Prevention and Treatment Act (42 U.S.C. 5106 et seq.).
        (5) Community corrections programs under IC 11-12.
        (6) Special education programs under IC 20-1-6-19.
        (7) All programs designed to prevent child abuse, neglect, or delinquency, or to enhance child welfare and family preservation administered by, or through funding provided by, the division of family and children, county offices, prosecutors, or juvenile courts, including child services and programs funded under IC 12-19-7 and IC 31-40.
        (8) Probation user's fees under IC 31-40-2-1.
        (9) The child advocacy fund under IC 12-17-17.
SOURCE: IC 31-37-24-11; (02)IN1003.1.221. -->     SECTION 221. IC 31-37-24-11, AS AMENDED BY P.L.273-1999, SECTION 115, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. The director or the state superintendent of public instruction may, not later than thirty (30) days after receiving the plan, transmit to the team and the county fiscal body director any comments, including recommendations for modification of the plan, that the director or the state superintendent of public instruction considers appropriate.
SOURCE: IC 31-37-24-12; (02)IN1003.1.222. -->     SECTION 222. IC 31-37-24-12, AS AMENDED BY P.L.273-1999, SECTION 116, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12. Not later than sixty (60)

days after receiving the plan, the county fiscal body director shall do one (1) of the following:
        (1) Approve the plan as submitted by the team.
        (2) Approve the plan with amendments, modifications, or revisions adopted by the county fiscal body.
        (3) (2) Return the plan to the team with directions concerning:
            (A) subjects for further study and reconsideration; and
            (B) resubmission of a revised plan.

SOURCE: IC 31-37-24-13; (02)IN1003.1.223. -->     SECTION 223. IC 31-37-24-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 13. (a) Upon receiving the initial plan and each revised or updated plan, the county fiscal body director shall consider the plan in developing the family and children's fund budget for the delivery of child services in the county.
    (b) The county fiscal body may appropriate from the family and children's fund any amounts necessary to provide funding to implement the plan.
SOURCE: IC 31-37-24-14; (02)IN1003.1.224. -->     SECTION 224. IC 31-37-24-14, AS AMENDED BY P.L.273-1999, SECTION 117, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) The team shall meet at least one (1) time each year to do the following:
        (1) Develop, review, or revise a strategy that identifies:
            (A) the manner in which prevention and early intervention services will be provided or improved;
            (B) how local collaboration will improve children's services; and
            (C) how different funds can be used to serve children and families more effectively.
        (2) Reorganize as needed and select its vice chairperson for the ensuing year.
        (3) Review the implementation of the plan and prepare revisions, additions, or updates of the plan that the team considers necessary or appropriate to improve the quality and efficiency of early intervention child welfare services provided in accordance with the plan.
        (4) Prepare and submit to the county fiscal body director and the state superintendent of public instruction a report on the operations of the plan during the preceding year and a revised and updated plan for the ensuing year.
    (b) The chairperson or vice chairperson of the team or the county fiscal body may convene any additional meetings of the team that are, in the chairperson's or vice chairperson's opinion, necessary or appropriate.
SOURCE: IC 31-37-24-15; (02)IN1003.1.225. -->     SECTION 225. IC 31-37-24-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. The team or the county fiscal body shall transmit copies of the initial plan, each annual report, and each revised plan to the following:
        (1) The director.
        (2) The state superintendent of public instruction.
        (3) The county office.
        (4) The juvenile court.
        (5) The superintendent of each public school corporation in the county.
        (6) The local step ahead council.
        (7) Any public or private agency that:
            (A) provides services to families and children in the county that requests information about the plan; or
            (B) the team has identified as a provider of services relevant to the plan.
SOURCE: IC 31-37-24-16; (02)IN1003.1.226. -->     SECTION 226. IC 31-37-24-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. The team or the county fiscal body shall publicize to residents of the county the existence and availability of the plan.
SOURCE: IC 31-40-1-1; (02)IN1003.1.227. -->     SECTION 227. IC 31-40-1-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. This article applies to a financial burden sustained by a county or the division as the result of costs paid by the county or the division under section 2 of this chapter, including costs resulting from the institutional placement of a child adjudicated a delinquent child or a child in need of services.
SOURCE: IC 31-40-1-2; (02)IN1003.1.228. -->     SECTION 228. IC 31-40-1-2, AS AMENDED BY P.L.273-1999, SECTION 119, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) As used in this section, "per diem" means the amount payable for the cost of support and maintenance of a child placed by, or placed with the approval of, a juvenile court in a facility other than the home of the child's parent or guardian, including the cost of the items that are included in foster care maintenance payments (as defined in 42 U.S.C. 675(4)), or that would be included if the child were eligible for assistance under Title IV-E of the Social Security Act (42 U.S.C. 670 et seq.).
     (b) The county division shall pay from the county family and children's state general fund the cost of:
        (1) any per diem and any services ordered by the juvenile court for any child or the child's parent, guardian, or custodian, other than secure detention; except as provided in subsection (c); and
        (2) returning a child under IC 31-37-23.
     (c) The county shall pay from the county general fund the cost of any per diem for a child adjudicated a delinquent child under IC 31-37, or for a child for whom a program of informal adjustment has been implemented under IC 31-37-9, if the child is placed in a secure facility that is not a secure private facility.
    (b) (d) The county fiscal body shall provide sufficient money to meet the court's requirements.
SOURCE: IC 31-40-1-3; (02)IN1003.1.229. -->     SECTION 229. IC 31-40-1-3, AS AMENDED BY P.L.273-1999, SECTION 120, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) A parent or guardian of the estate of a child adjudicated a delinquent child or a child in need of services is financially responsible as provided in this chapter (or IC 31-6-4-18(e) before its repeal) for any services ordered by the court.
    (b) Each parent of a child alleged to be a child in need of services or alleged to be a delinquent child shall, before a dispositional hearing, furnish the court with an accurately completed and current child support obligation worksheet on the same form that is prescribed by the Indiana supreme court for child support orders.
    (c) At:
        (1) a detention hearing;
        (2) a hearing that is held after the payment of costs by a county under section 2 of this chapter (or IC 31-6-4-18(b) before its repeal);
        (3) the dispositional hearing; or
        (4) any other hearing to consider modification of a dispositional decree;
the juvenile court shall order the child's parents or the guardian of the child's estate to pay for or reimburse the county or the division for the cost of services provided to the child or the parent or guardian unless the court finds that the parent or guardian is unable to pay or that justice would not be served by ordering payment from the parent or guardian.
SOURCE: IC 31-40-1-5; (02)IN1003.1.230. -->     SECTION 230. IC 31-40-1-5, AS AMENDED BY P.L.273-1999, SECTION 121, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) This section applies whenever the court orders or approves removal of a child from the home of a child's parent or guardian and placement of the child in a child caring institution (as defined in IC 12-7-2-29), a foster family home (as defined in IC 12-7-2-90), or the home of a relative of the child that is not a foster family home.
    (b) If an existing support order is in effect, the court shall order the support payments to be assigned to the county office or the division for the duration of the placement out of the home of the child's parent or guardian. The court shall notify the court that:
        (1) entered the existing support order; or
        (2) had jurisdiction, immediately before the placement, to modify or enforce the existing support order;
of the assignment and assumption of jurisdiction by the juvenile court under this section.
    (c) If an existing support order is not in effect, the court shall do the following:
        (1) Include in the order for removal or placement of the child an assignment to the county office or the division, or confirmation of an assignment that occurs or is required under applicable federal law, of any rights to support, including support for the cost of any medical care payable by the state under IC 12-15, from any parent or guardian who has a legal obligation to support the child.
        (2) Order support paid to the county office or the division by each of the child's parents or the guardians of the child's estate to be based on child support guidelines adopted by the Indiana supreme court and for the duration of the placement of the child out of the home of the child's parent or guardian, unless:
            (A) the court finds that entry of an order based on the child support guidelines would be unjust or inappropriate considering the best interests of the child and other necessary obligations of the child's family; or
            (B) the county office does not make foster care maintenance payments to the custodian of the child. For purposes of this clause, "foster care maintenance payments" means any payments for the cost of (in whole or in part) and the cost of providing food, clothing, shelter, daily supervision, school supplies, a child's personal incidentals, liability insurance with respect to a child, and reasonable amounts for travel to the child's home for visitation. In the case of a child caring institution, the term also includes the reasonable costs of administration and operation of the institution as are necessary to provide the items described in this clause.
        (3) If the court:
            (A) does not enter a support order; or
            (B) enters an order that is not based on the child support guidelines;
        the court shall make findings as required by 45 CFR 302.56(g).
    (d) Payments in accordance with a support order assigned under subsection (b) or entered under subsection (c) (or IC 31-6-4-18(f) before its repeal) shall be paid through the clerk of the circuit court as trustee for remittance to the county office.
    (e) The Title IV-D agency shall establish, modify, or enforce a support order assigned or entered by a court under this section in accordance with IC 12-17-2 and 42 U.S.C. 654. The county office shall, if requested, assist the Title IV-D agency in performing its duties under this subsection.
    (f) If the juvenile court terminates placement of a child out of the home of the child's parent or guardian, the court shall:
        (1) notify the court that:
            (A) entered a support order assigned to the county office under subsection (b); or
            (B) had jurisdiction, immediately before the placement, to modify or enforce the existing support order;
        of the termination of jurisdiction of the juvenile court with respect to the support order;
        (2) terminate a support order entered under subsection (c) that requires payment of support by a custodial parent or guardian of the child, with respect to support obligations that accrue after termination of the placement; or
        (3) continue in effect, subject to modification or enforcement by a court having jurisdiction over the obligor, a support order entered under subsection (c) that requires payment of support by a noncustodial parent or guardian of the estate of the child.
    (g) The court may at or after a hearing described in section 3 of this chapter order the child's parent or the guardian of the child's estate to reimburse the county office or the division for all or any portion of the expenses for services provided to or for the benefit of the child that are paid from the county family and children's state general fund during the placement of the child out of the home of the parent or guardian, in addition to amounts reimbursed through payments in accordance with a support order assigned or entered as provided in this section, subject to applicable federal law.
SOURCE: IC 31-40-1-6; (02)IN1003.1.231. -->     SECTION 231. IC 31-40-1-6, AS ADDED BY P.L.273-1999, SECTION 122, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) The division with the approval of the county fiscal body, may contract with any of the following, on terms and conditions with respect to compensation and payment or reimbursement of expenses as the division may determine, for the enforcement and collection of any parental reimbursement

obligation established by order entered by the court under section 3 or 5(g) of this chapter:
        (1) The prosecuting attorney of the county that paid the cost of the services ordered by the court, as provided in section 2 of this chapter.
        (2) An attorney for the county office that paid the cost of services ordered by the court, if the attorney is not an employee of the county office or the division.
        (3) An attorney licensed to practice law in Indiana.
    (b) A contract entered into under this section is subject to approval under IC 4-13-2-14.1.
    (c) Any fee payable to a prosecuting attorney under a contract under subsection (a)(1) shall be deposited in the county general fund and credited to a separate account identified as the prosecuting attorney's child services collections account. The prosecuting attorney may expend funds credited to the prosecuting attorney's child services collections account, without appropriation, only for the purpose of supporting and enhancing the functions of the prosecuting attorney in enforcement and collection of parental obligations to reimburse the county family and children's fund. state general fund.

SOURCE: IC 31-40-1-7; (02)IN1003.1.232. -->     SECTION 232. IC 31-40-1-7, AS ADDED BY P.L.273-1999, SECTION 123, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) Amounts received as payment of support or reimbursement of the cost of services paid as provided in this chapter shall be distributed in the following manner:
        (1) If any part of the cost of services was paid from federal funds under Title IV Part E of the Social Security Act (42 U.S.C. 671 et seq.), the amounts received shall first be applied as provided in 42 U.S.C. 657 and 45 CFR 302.52.
        (2) All amounts remaining after the distributions required by subdivision (1) shall be deposited in the family and children's fund (established by IC 12-19-7-3) of the county that paid the cost of the services.
    (b) Any money deposited in a county family and children's fund under this section shall be reported to the division, in the form and manner prescribed by the division, and shall be applied to the child services budget compiled and adopted by the county director for the next state fiscal year, in accordance with IC 12-19-7-6. state general fund.
SOURCE: IC 31-40-2-1; (02)IN1003.1.233. -->     SECTION 233. IC 31-40-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) Subject to IC 31-40-1-3, a juvenile court may order each delinquent child who

receives supervision under IC 31-37-19 or the child's parent, guardian, or custodian to pay to the probation department clerk:
        (1) an initial probation user's fee of at least twenty-five dollars ($25) but not more than one hundred dollars ($100); and
        (2) a probation user's fee of at least five dollars ($5) but not more than fifteen dollars ($15) for each month the child receives supervision.
    (b) The probation department shall deposit the probation user's fees paid under subsection (a) into the county supplemental juvenile probation services fund.

SOURCE: IC 32-1-6-22; (02)IN1003.1.234. -->     SECTION 234. IC 32-1-6-22, AS AMENDED BY P.L.88-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 22. (a) Except as provided in subsection (d) or (e), the co-owners are bound to contribute pro rata, in the percentages computed according to section 7 of this chapter, toward the expenses of administration and of maintenance and repair of the general common areas and facilities, and, in the proper case, of the limited common areas and facilities of the building, and toward any other expense lawfully agreed upon.
    (b) No co-owner may exempt himself from contributing toward such expenses by waiver of the use or enjoyment of the common areas and facilities or by abandonment of the condominium unit belonging to him.
    (c) All sums assessed by the association of co-owners shall be established by using generally accepted accounting principles applied on a consistent basis and shall include the establishment and maintenance of a replacement reserve fund for capital expenditures and replacement and repair of the common areas and facilities, which funds shall be used for those purposes and not for usual and ordinary repair expenses of the common areas and facilities. This fund for capital expenditures and replacement and repair of common areas and facilities shall be:
        (1) maintained in a separate interest bearing account with a bank or savings association authorized to conduct business in the county in which the horizontal property regime is established; or
        (2) invested in the same manner, and in the same types of investments, in which the funds of a political subdivision may be invested under IC 5-13-9 or as otherwise provided by law.
Assessments collected for contributions to this fund may not be subject to Indiana gross income tax or adjusted gross income tax.
    (d) If the declaration so provides, the declarant or a developer (or a successor in interest of either) that is a co-owner of unoccupied

condominium units offered for the first time for sale is excused from contributing toward the expenses referred to in subsection (a) for those units for a period of time that:
        (1) is stated in the declaration;
        (2) begins on the day that the declaration is recorded; and
        (3) terminates no later than the first day of the twenty-fourth calendar month following the month in which the closing of the sale of the first condominium unit occurs.
However, if the expenses referred to in subsection (a) that are incurred during the stated period exceed the amount assessed against the other co-owners, then the declarant, developer, or successor shall pay the excess.
    (e) If the declaration does not contain the provisions referred to in subsection (d), the declarant or a developer (or a successor in interest of either) that is a co-owner of unoccupied condominium units offered for the first time for sale is excused from contributing toward the expenses referred to in subsection (a) for those units for a stated period of time if the declarant, developer, or successor:
        (1) has guaranteed to each purchaser (either in the purchase contract, in the declaration, in the prospectus, or by an agreement with a majority of the other co-owners) that the assessment for those expenses will not increase over a stated dollar amount during the stated period; and
        (2) has obligated itself to pay any amount of those expenses incurred during the stated period and not produced by the assessments at the guaranteed level receivable from the other co-owners.

SOURCE: IC 33-1-12-4; (02)IN1003.1.235. -->     SECTION 235. IC 33-1-12-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. Sitting in committee, the judges of the courts in each county listed in section 2 of this chapter shall determine the duties of the court administrator and the court administrator shall perform such administrative duties as the judges determine. The salary of the court administrator shall be determined by a majority of the judges listed in section 2 of this chapter in each county, sitting in committee. and said salary shall be paid by the county upon the order of the majority of the committee of judges.
SOURCE: IC 33-1-12-5; (02)IN1003.1.236. -->     SECTION 236. IC 33-1-12-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. For the implementation of this chapter , the judges of the courts sitting in committee may appoint additional personnel in sufficient number so that they may be adequately served by the court administrator. The

salaries of such additional personnel shall be paid by the county upon the order of the committee of judges.

SOURCE: IC 33-1-18; (02)IN1003.1.237. -->     SECTION 237. IC 33-1-18 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 18. Court Expenditures
    Sec. 1. Notwithstanding any other law, this chapter governs the operations of the following courts:
        (1) Circuit court.
        (2) Superior court.
        (3) Probate court.
        (4) County court.
    Sec. 2. As used in this chapter, "court" refers to a court described in section 1 of this chapter.
    Sec. 3. (a) In addition to the authority provided to a court under IC 31 and this title to employ, manage, and fix the salary of a judicial officer, a bailiff, a court reporter, a probation officer, and other personnel (including an administrative officer) necessary to transact the business of the court, a court may, individually or jointly with another court, adopt rules to provide for the administration of the court, including rules governing the following:
        (1) Legal representation for indigents.
        (2) Budgetary matters of the court.
        (3) Operation of the probation department.
        (4) Employment and management of court administrative officers.
        (5) Appointment and management of court appointed special advocates and guardians ad litem.
        (6) Maintenance of an adequate law library.
        (7) Cooperative efforts with other courts for establishing and administering shared programs and facilities.
    (b) The authority and rules of administration described in subsection (a) must be consistent with the rules adopted by the supreme court.
    Sec. 4. A court shall submit a budget for the court to the division of state court administration in conformity with the rules adopted by the supreme court.
    Sec. 5. The supreme court shall present a consolidated budget for the operation of all courts to the general assembly and the budget agency at the times and in the format the budget agency requests. The budget must cover all personnel and other operating expenses

of courts except the expenditures described in sections 7 and 8 of this chapter.
    Sec. 6. Except as provided in sections 7 and 8 of this chapter, the state shall pay the personnel and other operating expenses of all courts from the amounts appropriated for the operation of courts.
    Sec. 7. (a) A county served by a court shall pay the following capital, personnel, and other operating expenses of a court that are not otherwise paid with federal, state, or private funds:
        (1) Costs of providing and maintaining a suitable courtroom and other rooms and facilities, including furniture and equipment, as may be necessary for the judge and administrative officers of the court.

        (2) Costs of providing and operating a juvenile detention facility (as defined in IC 31-9-2-71), except for the costs of employing probation officers who provide services in a juvenile detention facility in conformity with rules adopted by the supreme court.
        (3) Costs of providing and operating a secure private facility (as defined in IC 31-9-2-115) operated by the court.
        (4) Costs of a community transition program that is operated through a probation department.
        (5) Costs of a circuit court alcohol abuse deterrent program under IC 9-30-9.
        (6) Costs of an alcohol and drug services program under IC 12-23-14.
        (7) Supplemental payments under IC 33-4-7-10 or IC 33-13-12-7.1.
        (8) Costs of returning a juvenile under IC 31-37-23.
        (9) Costs of legal representation for indigents.
        (10) Costs of court appointed special advocates and guardians ad litem.
        (11) Other costs for court operations as provided by law.
    (b) The county shall provide a suitable place for each of the following courts sitting in the county to hold court:
        (1) Circuit court.
        (2) Superior court.

         (3) Probate court.
        (4) County court.
    Sec. 8. Regardless of whether personnel from any of the following offices or programs are assigned to a court, a county shall pay the capital, personnel, and other operating expenses of the following

offices and programs that are not otherwise paid by federal, state, or private funds:
        (1) Sheriff.
        (2) County clerk.
        (3) Prosecuting attorney.
        (4) Community corrections program.
        (5) Other programs as provided by law.
    Sec. 9. The county executive shall provide and maintain a suitable courtroom and facilities, including furniture and equipment, as necessary, for the use of the judges and court administrative officers serving the county.

SOURCE: IC 33-1-19; (02)IN1003.1.238. -->     SECTION 238. IC 33-1-19 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 19. Court Administrative Officers
    Sec. 1. Notwithstanding any other law, this chapter governs the operations of the following courts:
        (1) Circuit court.
        (2) Superior court.

         (3) Probate court.
        (4) County court.
    Sec. 2. As used in this chapter, "administrative officer" means hearing judges, magistrates, commissioners, referees, bailiffs, court reporters, probation officers, or other permanent or temporary employees required to efficiently serve a court.

    Sec. 3. As used in this chapter, "court" refers to a court described in section 1 of this chapter.
     Sec. 4. A court may:
        (1) employ an administrative officer necessary to transact the business of the court;
        (2) fix the salary of an administrative officer;
        (3) submit a budget; and
        (4) adopt rules and procedures for the administration of the court.
    Sec. 5. The supreme court may adopt rules to govern the employment and management of administrative officers. A court shall comply with the rules adopted under this section.

SOURCE: IC 33-2.1-7-3; (02)IN1003.1.239. -->     SECTION 239. IC 33-2.1-7-3, AS AMENDED BY P.L.183-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) The division of state court administration shall do the following:
        (1) Examine the administrative and business methods and systems employed in the offices of the clerks of court and other offices related to and serving the courts and make recommendations for necessary improvement.
        (2) Collect and compile statistical data and other information on the judicial work of the courts in the state. All justices of the supreme court, judges of the court of appeals, judges of all trial courts in the state, and any city or town courts, whether having general or special jurisdiction, court clerks, court reporters, and other officers and employees of the courts shall, upon notice by the executive director and in compliance with procedures prescribed by the executive director, furnish the executive director such information as is requested concerning the nature and volume of judicial business. The information reports shall include, but not be limited to, the volume, condition, and type of business conducted by the courts, the methods of procedure therein, the work accomplished by the courts, the receipt and expenditure of public money by and for the operation of the courts, and the methods of disposition or termination of cases.
        (3) Prepare and publish reports, not less than one (1) nor more than two (2) times per year, on the nature and volume of judicial work performed by the courts as determined by the information required in subdivision (2).
        (4) Serve the judicial nominating commission and the judicial qualifications commission in the performance by the commissions of their statutory and constitutional functions.
        (5) Administer the civil legal aid fund as required by IC 33-2.1-11.
        (6) Administer the judicial technology and automation project fund established by section 10 of this chapter.
         (7) Compile the budgets submitted by each trial court under IC 33-1-18 and assist the supreme court in the preparation and submission to the general assembly of one (1) unified budget for the operation of all circuit, superior, probate, and county courts.
    (b) All forms to be used in the gathering of data must be approved by the supreme court, and shall be distributed to all judges and clerks prior to the start of each period for which reports are required.
SOURCE: IC 33-2.1-7-9; (02)IN1003.1.240. -->     SECTION 240. IC 33-2.1-7-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. Any judge transferred to a court in another county shall be paid travel and other necessary expenses by the county to which he is transferred An allowance for expenses shall be certified by the chief justice in

duplicate to the auditor of the county. The certificate of allowance shall be prima facie evidence of the correctness of the claims, and no item or items of expenses certified to be correct shall be disallowed by the board of commissioners of that county. state under rules adopted by the supreme court.

SOURCE: IC 33-4-1-2.8; (02)IN1003.1.241. -->     SECTION 241. IC 33-4-1-2.8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2.8. (a) The Allen circuit court has concurrent jurisdiction with the Allen superior court concerning paternity actions.
    (b) In addition to the magistrate appointed under section 2.1 of this chapter, the judge of the Allen circuit court may appoint a hearing officer with the powers of a magistrate under IC 33-4-7. The hearing officer continues in office until removed by the judge.
    (c) The salary of a hearing officer appointed under subsection (b) is equal to that of a magistrate under IC 33-4-7. The hearing officer's salary must be paid by the county. The hearing officer is a county employee.
SOURCE: IC 33-4-5-2; (02)IN1003.1.242. -->     SECTION 242. IC 33-4-5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. (a) The commissioners shall immediately, from the names of legal voters and citizens of the United States on the latest tax duplicate and the tax schedules of the county, examine for the purpose of determining the sex, age, and identity of prospective jurors, and proceed to select and deposit, in a box furnished by the clerk for that purpose, the names, written on separate slips of paper of uniform shape, size, and color, of twice as many persons as will be required by law for grand and petit jurors in the courts of the county, for all the terms of such courts, to commence with the calendar year next ensuing. Each selection shall be made as nearly as possible in proportion to the population of each county commissioner's district. In making such selections, they shall in all things observe their oath, and they shall not select the name of any person who is to them known to be interested in or has cause pending which may be tried by a jury to be drawn from the names so selected. They shall deliver the box, locked, to the clerk of the circuit court, after having deposited therein the names as herein directed. The key shall be retained by one (1) of the commissioners, not an adherent of the same political party as is the clerk.
    (b) In a county containing a consolidated city, the commissioners may, upon an order made by the judge of the circuit court and entered in the records of the circuit court of the county, make such selections and such deposits monthly instead of annually and may omit the personal examination of prospective jurors, the examination of voters

lists, and make selection without reference to commissioners' districts. The judge of the circuit court in any such county containing a consolidated city may appoint a secretary for the jury commissioners, and sufficient stenographic aid and clerical help to properly perform the duties of the commissioners and may fix the salaries of the commissioners, the secretary, and stenographic and clerical employees, and may also provide office quarters and necessary supplies therefor, all of which shall be paid for from the treasury of the county upon the order of the court.
    (c) Subject to appropriations made by the county fiscal body The jury commissioners may utilize a computerized jury selection system. However, the system utilized for the selection system must be fair and may not violate the rights of persons with respect to the impartial and random selection of prospective jurors. The jurors selected under the computerized jury selection system must be eligible for selection under this chapter. The commissioners shall deliver the names of the individuals selected to the clerk of the circuit court. The commissioners shall observe their oath in all activities taken under this subsection.
    (d) The jury commissioners may supplement voter registration lists and tax schedules under subsection (a) with names from lists of persons residing in the county that the jury commissioners may designate as necessary to obtain a cross section of the population of each county commissioner's district. The lists designated by the jury commissioners under this subsection must be used for the selection of jurors throughout the entire county.
    (e) The supplemental sources designated under subsection (d) may consist of such lists as those of utility customers, persons filing income tax returns, motor vehicle registrations, city directories, telephone directories, and driver's licenses. These supplemental lists may not be substituted for the voter registration list. The jury commissioners may not draw more names from supplemental sources than are drawn from the voter registration lists and tax schedules.

SOURCE: IC 33-4-5-6; (02)IN1003.1.243. -->     SECTION 243. IC 33-4-5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. Should a vacancy occur in the office of jury commissioner, at any time, or should any such commissioner fail to act when required, or because of illness or for any other cause, be unable to act, the circuit court shall appoint a person to fill such vacancy, or to act for the time being, as the case may require, and such person so appointed shall possess the qualifications required for jury commissioners, and shall be an adherent of the same political party as is the commissioner in whose stead he is appointed to serve, and he shall take the oath required by

this chapter. For the time actually employed in the performance of his duties, each jury commissioner shall be allowed a per diem to be fixed by the court. and upon such allowance the county auditor shall draw his warrant, and the same be paid out of the county treasury.

SOURCE: IC 33-4-7-10; (02)IN1003.1.244. -->     SECTION 244. IC 33-4-7-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 10. Except as provided in section 11 of this chapter, The state shall pay the salary of a magistrate. A county located in the circuit that the magistrate serves may supplement the magistrate's salary.
SOURCE: IC 33-4-10-5; (02)IN1003.1.245. -->     SECTION 245. IC 33-4-10-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. In accordance with rules adopted by the judges of the court under section 6 of this chapter, the presiding judge shall do the following:
        (1) Ensure that the court operates efficiently and judicially under rules adopted by the court.
        (2) Annually Submit to the fiscal body of Monroe County a budget for the court including amounts necessary for:
            (A) the operation of the circuit's probation department;
            (B) the defense of indigents; and
            (C) maintaining an adequate law library. to the division of state court administration.
        (3) Make the appointments or selections required of a circuit or superior court judge under the following statutes:
            IC 8-4-21-2
            IC 11-12-2-2
            IC 16-22-2-4
            IC 16-22-2-11
            IC 16-22-7
            IC 20-4-1
            IC 20-4-8
            IC 20-4-15-2
            IC 20-5-20-4
            IC 20-5-23-1
            IC 20-14-10-10
            IC 21-5-11-8
            IC 21-5-12-8
            IC 36-9
            IC 36-10.
        (4) Make appointments or selections required of a circuit or superior court judge by any other statute, if the appointment or selection is not required of the court because of an action before the court.
SOURCE: IC 33-4-10-7; (02)IN1003.1.246. -->     SECTION 246. IC 33-4-10-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) Each judge of the court may, subject to the budget approved for the court, by the fiscal body of Monroe County, employ personnel necessary for the proper administration of the court.
    (b) Personnel employed under this section:
        (1) include court reporters, bailiffs, clerical staff, and any additional officers necessary for the proper administration of the court; and
        (2) are subject to the rules concerning employment and management of court personnel adopted by the court under section 6 of this chapter.
SOURCE: IC 33-4-10-8; (02)IN1003.1.247. -->     SECTION 247. IC 33-4-10-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) The court may appoint a court administrator subject to the budget approved for the court. by the fiscal body of Monroe County.
    (b) A court administrator appointed under this section is subject to the rules concerning employment and management of court personnel adopted by the court under section 6 of this chapter.
SOURCE: IC 33-4-12-4; (02)IN1003.1.248. -->     SECTION 248. IC 33-4-12-4, AS ADDED BY P.L.124-2000, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. In accordance with rules adopted by the judges of the Delaware circuit court under section 5 of this chapter, the presiding judge shall do the following:
        (1) Ensure that the court operates efficiently and judicially.
        (2) Annually Submit to the fiscal body of Delaware County a budget for the court including amounts necessary for the following:
            (A) Operation of the Delaware circuit court's probation department.
            (B) Defense of indigents.
            (C) Maintenance of an adequate law library. to the division of state court administration.
        (3) Make appointments or selections required of a circuit or superior court judge.
SOURCE: IC 33-4-12-6; (02)IN1003.1.249. -->     SECTION 249. IC 33-4-12-6, AS ADDED BY P.L.124-2000, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 6. (a) Each judge of the Delaware circuit court may, subject to the budget approved for the court, by the fiscal body of Delaware County, employ personnel necessary for the proper administration of the judge's docket.
    (b) Personnel employed under this section:
        (1) include court reporters, bailiffs, clerical staff, and any additional officers necessary for the proper administration of the court; and
        (2) are subject to the rules concerning employment and management of court personnel adopted by the court under section 5 of this chapter.
    (c) A commissioner is entitled to practice law in any division of the court in which the commissioner does not have appointive judicial authority. A commissioner has judicial authority only in the division of the court presided over by the judge who appointed the commissioner.
SOURCE: IC 33-4-12-7; (02)IN1003.1.250. -->     SECTION 250. IC 33-4-12-7, AS ADDED BY P.L.124-2000, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) The Delaware circuit court may appoint a court administrator subject to the budget approved for the court. by the fiscal body of Delaware County.
    (b) A court administrator appointed under this section is subject to the rules concerning employment and management of court personnel adopted by the court under section 5 of this chapter.
SOURCE: IC 33-5-4.5-5; (02)IN1003.1.251. -->     SECTION 251. IC 33-5-4.5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Adams circuit court. Their salaries shall be paid monthly out of the treasury of Adams County as provided by law.
SOURCE: IC 33-5-5.1-8; (02)IN1003.1.252. -->     SECTION 252. IC 33-5-5.1-8, AS AMENDED BY P.L.196-1999, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) The court may appoint such number of probate commissioners, juvenile referees, bailiffs, court reporters, probation officers, and such other personnel, including but not limited to an administrative officer, as shall in the opinion of the court be necessary to facilitate and transact the business of the court. In addition to the personnel authorized under this subsection and IC 31-31-3, the judges of the Allen superior court-civil division may jointly appoint not more than four (4) full-time magistrates under IC 33-4-7 to serve the Allen superior court-civil division. The judges of the Allen superior court-civil division may jointly assign any such magistrates the duties and powers of a probate commissioner. In addition to the personnel authorized under this subsection and IC 31-31-3, the judge of the Allen superior court-criminal division may jointly appoint not more than three (3) full-time magistrates under IC 33-4-7 to serve the Allen superior court-criminal division. Any such magistrate serves at the

pleasure of, and continues in office until jointly removed by, the judges of the division that appointed the magistrate. All appointments made under this subsection shall be made without regard to the political affiliation of the appointees. The salaries of the above personnel shall be fixed and paid as provided by law. If the salaries of any of the above personnel are not provided by law, the amount and time of payment of such salaries shall be fixed by the court, to be paid out of the county treasury by the county auditor, upon the order of the court, and be entered of record. The officers and persons so appointed shall perform such duties as are prescribed by the court. Any such administrative officer appointed by the court shall operate under the jurisdiction of the chief judge and shall serve at the pleasure of the chief judge. Any such probate commissioners, magistrates, juvenile referees, bailiffs, court reporters, probation officers, and other personnel appointed by the court shall serve at the pleasure of the court.
    (b) Any probate commissioner so appointed by the court may be vested by said court with all suitable powers for the handling and management of the probate and guardianship matters of the court, including the fixing of all bonds, the auditing of accounts of estates and guardianships and trusts, acceptance of reports, accounts, and settlements filed in said court, the appointment of personal representatives, guardians, and trustees, the probating of wills, the taking and hearing of evidence on or concerning such matters, or any other probate, guardianship, or trust matters in litigation before such court, the enforcement of court rules and regulations, the making of reports to the court concerning his doings in the above premises, including the taking and hearing of evidence together with such commissioner's findings and conclusions regarding the same, all of such matters, nevertheless, to be under the final jurisdiction and decision of the judges of said court.
    (c) Any juvenile referee so appointed by the court may be vested by said court with all suitable powers for the handling and management of the juvenile matters of the court, including the fixing of bonds, the taking and hearing of evidence on or concerning any juvenile matters in litigation before the court, the enforcement of court rules and regulations, the making of reports to the court concerning his doings in the above premises, all of such matters, nevertheless, to be under final jurisdiction and decision of the judges of said court.
    (d) For any and all of the foregoing purposes, any probate commissioner and juvenile referee shall have the power to summon witnesses to testify before the said commissioner and juvenile referee,

to administer oaths and take acknowledgments in connection with and in furtherance of said duties and powers.
    (e) The powers of a magistrate appointed under this section include the powers provided in IC 33-4-7 and the power to enter a final order or judgment in any proceeding involving matters specified in IC 33-5-2-4 (jurisdiction of small claims docket) or IC 34-26-2 (protective orders to prevent abuse).

SOURCE: IC 33-5-5.1-21.1; (02)IN1003.1.253. -->     SECTION 253. IC 33-5-5.1-21.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21.1. (a) The court shall be governed and operated by a board of judges, which is composed of all of the judges of the superior court. Six (6) judges are required for a quorum for conducting business and as a majority for taking action. Every two (2) years the board of judges shall elect a chief judge to carry out such ministerial functions of representation as the board of judges periodically determines by a majority of the board's members.
    (b) Matters of administration, budget, expenditures, policy, and procedure affecting the entire court shall be determined by a majority of the board of judges. Any such determination shall bind the entire board of judges and each judge thereof.
    (c) One (1) budget covering all the divisions of the court shall be prepared for the court and submitted to the county fiscal body under rules adopted by the supreme court. However, each division shall prepare its own budget as a component of the superior court's total budget.
SOURCE: IC 33-5-8-3; (02)IN1003.1.254. -->     SECTION 254. IC 33-5-8-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) The clerk of the Bartholomew circuit court shall be the clerk of the Bartholomew superior courts and the sheriff of Bartholomew County shall be the sheriff of the Bartholomew superior courts. The clerk and sheriff shall attend the courts and discharge all the duties pertaining to their respective offices as they are now or may hereafter be required to do by law with reference to the Bartholomew circuit court.
    (b) The judges of the courts shall appoint a bailiff and an official court reporter for each court to serve as such during the pleasure of the court, and the judge shall fix their per diem or salary within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters, and the same shall be paid monthly out of the treasury of Bartholomew County in the manner provided by law. The salary of judge of each court shall be the same as is provided by law for judges of superior courts.
SOURCE: IC 33-5-8.5-5; (02)IN1003.1.255. -->     SECTION 255. IC 33-5-8.5-5, AS ADDED BY P.L.45-2000, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. The judge may appoint a referee, commissioner, or other personnel as the judge considers necessary to facilitate and transact the business of the court. Their salaries shall be fixed in the same manner as the salaries of the personnel for the Blackford circuit court. Their salaries shall be paid monthly out of the treasury of Blackford County as provided by law. Personnel appointed under this section continue in office until removed by the judge of the court.
SOURCE: IC 33-5-9-3; (02)IN1003.1.256. -->     SECTION 256. IC 33-5-9-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judges of the courts shall appoint a bailiff and an official court reporter for each court, to serve as such during the pleasure of the court; and the judges shall fix their compensation within the limits and in the manner as may be provided by law concerning the bailiff and official court reporter of Boone circuit court. and the compensation shall be paid monthly out of the treasury of Boone County in the manner provided by law.
SOURCE: IC 33-5-9.5-5; (02)IN1003.1.257. -->     SECTION 257. IC 33-5-9.5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Carroll circuit court. Their salaries shall be paid monthly out of the treasury of Carroll County as provided by law.
SOURCE: IC 33-5-9.7-9; (02)IN1003.1.258. -->     SECTION 258. IC 33-5-9.7-9, AS AMENDED BY P.L.196-1999, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The judge of each court shall appoint a bailiff and an official court reporter for the judge's court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Cass circuit court. Their salaries shall be paid monthly out of the treasury of Cass County as provided by law.
SOURCE: IC 33-5-10.2-5; (02)IN1003.1.259. -->     SECTION 259. IC 33-5-10.2-5, AS ADDED BY P.L.45-2000, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. The judge may appoint a referee, commissioner, or other personnel as the judge considers necessary to facilitate and transact the business of the court. Their salaries shall be fixed in the same manner as the salaries of the personnel for the Dearborn circuit court. Their salaries shall be paid monthly out of the treasury of Dearborn County as provided by law.

Personnel appointed under this section continue in office until removed by the judge of the court.

SOURCE: IC 33-5-10.3-5; (02)IN1003.1.260. -->     SECTION 260. IC 33-5-10.3-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Clinton circuit court. Their salaries shall be paid monthly out of the treasury of Clinton County as provided by law.
SOURCE: IC 33-5-10.5-9; (02)IN1003.1.261. -->     SECTION 261. IC 33-5-10.5-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The judge of the court shall appoint a bailiff and an official court reporter for the court and the court may appoint a probation officer; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Clay circuit court. Their salaries shall be paid semimonthly out of the treasury of Clay County as provided by law.
SOURCE: IC 33-5-10.6-5; (02)IN1003.1.262. -->     SECTION 262. IC 33-5-10.6-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Daviess circuit court. Their salaries shall be paid monthly out of the treasury of Daviess County as provided by law.
SOURCE: IC 33-5-10.7-5; (02)IN1003.1.263. -->     SECTION 263. IC 33-5-10.7-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Decatur circuit court. and
        (2) paid monthly out of the treasury of Decatur County as provided by law.
SOURCE: IC 33-5-10.8-9; (02)IN1003.1.264. -->     SECTION 264. IC 33-5-10.8-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the DeKalb circuit court. Their salaries shall be paid monthly out of the treasury of DeKalb County as provided by law.
SOURCE: IC 33-5-10.8-17; (02)IN1003.1.265. -->     SECTION 265. IC 33-5-10.8-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. (a) The court has a standard small claims and misdemeanor division.
    (b) If the county executive establishes the position of small claims referee to serve the court, The judge of the court may appoint a part-time small claims referee under IC 33-5-2.5 to assist the court in the exercise of its small claims jurisdiction.
    (c) The small claims referee is entitled to reasonable compensation not exceeding twenty thousand dollars ($20,000) a year as recommended by the judge of the court. to be paid by the county after the salary is approved by the county fiscal body. The state shall pay fifty percent (50%) of the salary set under this subsection and the county shall pay the remainder of the salary.
    (d) The county executive shall provide and maintain a suitable courtroom and facilities for the use of the small claims referee, including necessary furniture and equipment.
    (e) The court shall employ administrative staff necessary to support the functions of the small claims referee.
    (f) The county fiscal body shall appropriate sufficient funds for the provision of staff and facilities required under this section.
SOURCE: IC 33-5-10.9-5; (02)IN1003.1.266. -->     SECTION 266. IC 33-5-10.9-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Fulton circuit court. and
        (2) paid monthly out of the treasury of Fulton County as provided by law.
SOURCE: IC 33-5-12.5-9; (02)IN1003.1.267. -->     SECTION 267. IC 33-5-12.5-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Dubois circuit court. Their salaries shall be paid monthly out of the treasury of Dubois County as provided by law.
SOURCE: IC 33-5-13.1-8; (02)IN1003.1.268. -->     SECTION 268. IC 33-5-13.1-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. Each judge of the court shall appoint a bailiff and an official court reporter for his court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Elkhart circuit court. Their salaries shall be paid monthly out of the treasury of Elkhart County as provided by law.
SOURCE: IC 33-5-17.1-5; (02)IN1003.1.269. -->     SECTION 269. IC 33-5-17.1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of

the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Fayette circuit court. Their salaries shall be paid monthly out of the treasury of Fayette County as provided by law.

SOURCE: IC 33-5-18.1-8; (02)IN1003.1.270. -->     SECTION 270. IC 33-5-18.1-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Floyd circuit court. Their salaries shall be paid monthly out of the treasury of Floyd County as provided by law.
SOURCE: IC 33-5-18.3-5; (02)IN1003.1.271. -->     SECTION 271. IC 33-5-18.3-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Gibson circuit court. Their salaries shall be paid monthly out of the treasury of Gibson County as provided by law.
SOURCE: IC 33-5-19-3; (02)IN1003.1.272. -->     SECTION 272. IC 33-5-19-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of the Grant superior court No. 2 shall appoint a bailiff and an official court reporter for said court, to serve as such during the pleasure of the court. The judge shall fix their compensation within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters. The compensation shall be paid monthly out of the treasury of Grant County, in the manner provided by law.
SOURCE: IC 33-5-19.3-5; (02)IN1003.1.273. -->     SECTION 273. IC 33-5-19.3-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Grant circuit court, Grant superior court, and Grant superior court No. 2. and
        (2) paid monthly out of the treasury of Grant County as provided by law.
SOURCE: IC 33-5-19.5-5; (02)IN1003.1.274. -->     SECTION 274. IC 33-5-19.5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Greene circuit court.

Their salaries shall be paid monthly out of the treasury of Greene County as provided by law.

SOURCE: IC 33-5-19.8-5; (02)IN1003.1.275. -->     SECTION 275. IC 33-5-19.8-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Harrison circuit court. and
        (2) paid monthly out of the treasury of Harrison County as provided by law.
SOURCE: IC 33-5-20.2-5; (02)IN1003.1.276. -->     SECTION 276. IC 33-5-20.2-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Howard circuit court, Howard superior court, and Howard superior court No. 2. and
        (2) paid monthly out of the treasury of Howard County as provided by law.
SOURCE: IC 33-5-21-3; (02)IN1003.1.277. -->     SECTION 277. IC 33-5-21-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of each court shall appoint a bailiff and an official court reporter for said court, to serve as such during the pleasure of the appointing judge. The appointing judge shall fix the compensation of the officers. within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters. The same shall be paid monthly out of the treasury of Henry County in the manner provided by law.
SOURCE: IC 33-5-22-3; (02)IN1003.1.278. -->     SECTION 278. IC 33-5-22-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of each Hamilton superior court:
        (1) shall appoint a bailiff and an official court reporter for the court; and
        (2) may appoint other personnel necessary to facilitate and transact the business of the court;
to serve as such during the pleasure of the court. and the judge shall fix their compensation within the limits and in the manner provided by law concerning bailiffs, official court reporters, and other personnel of the court. The compensation shall be paid monthly out of the treasury of Hamilton County in the manner provided by law.
SOURCE: IC 33-5-23-3; (02)IN1003.1.279. -->     SECTION 279. IC 33-5-23-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of each court shall appoint a bailiff and an official court reporter for the court, to serve as such during the pleasure of the court. The judge shall fix their per diem or salary. within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters. The same shall be paid monthly out of the treasury of Hancock County in the manner provided by law.
SOURCE: IC 33-5-24-3; (02)IN1003.1.280. -->     SECTION 280. IC 33-5-24-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of each Johnson superior court shall appoint a bailiff and an official court reporter for his court, to serve during the pleasure of the court. Each judge shall fix their per diem or salary. within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters. The per diem or salary shall be paid monthly out of the treasury of Johnson County in the manner provided by law.
SOURCE: IC 33-5-25-3; (02)IN1003.1.281. -->     SECTION 281. IC 33-5-25-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of each Hendricks superior court shall appoint a bailiff and an official court reporter for his court, to serve as such during the pleasure of the court. Each judge shall fix their compensation. within the limits and in the manner as may be provided by law concerning the bailiff and official court reporter of Hendricks circuit court. The compensation shall be paid monthly out of the treasury of Hendricks County in the manner provided by law.
SOURCE: IC 33-5-25.3-5; (02)IN1003.1.282. -->     SECTION 282. IC 33-5-25.3-5, AS AMENDED BY P.L.124-2000, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The court may appoint a referee and other personnel as the court determines necessary to facilitate and transact the business of the court.
    (c) Salaries of the personnel described in subsections (a) and (b) shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Huntington circuit court. Their salaries shall be paid out of the treasury of Huntington County as provided by law.
SOURCE: IC 33-5-25.4-5; (02)IN1003.1.283. -->     SECTION 283. IC 33-5-25.4-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Jackson circuit court. Their salaries shall be paid monthly out of the treasury of Jackson County as provided by law.
SOURCE: IC 33-5-25.5-18; (02)IN1003.1.284. -->     SECTION 284. IC 33-5-25.5-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 18. (a) The judge of the court may subject to the budget approved for the court by the fiscal body of Jasper County, employ personnel necessary for the proper administration of the court.
    (b) Personnel employed under this section:
        (1) include court reporters, bailiffs, clerical staff, and any additional officers necessary for the proper administration of the court; and
        (2) are subject to the rules concerning employment and management of court personnel adopted by the court under section 17 of this chapter.
SOURCE: IC 33-5-25.7-5; (02)IN1003.1.285. -->     SECTION 285. IC 33-5-25.7-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Jay circuit court. Their salaries shall be paid monthly out of the treasury of Jay County as provided by law.
SOURCE: IC 33-5-25.8-5; (02)IN1003.1.286. -->     SECTION 286. IC 33-5-25.8-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Jefferson and Switzerland circuit court. and
        (2) paid monthly out of the treasury of Jefferson County as provided by law.
SOURCE: IC 33-5-25.9-5; (02)IN1003.1.287. -->     SECTION 287. IC 33-5-25.9-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Jennings circuit court. Their salaries shall be paid monthly out of the treasury of Jennings County as provided by law.
SOURCE: IC 33-5-27-8; (02)IN1003.1.288. -->     SECTION 288. IC 33-5-27-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) Each judge of the superior court shall appoint a bailiff and an official court reporter for the court, to serve as such during the pleasure of the court.
    (b) Each judge shall fix the compensation of the bailiff and official court reporter. within the limits and in the manner as may be provided

by law concerning the bailiff and official court reporter of the Kosciusko circuit court. The compensation shall be paid monthly out of the treasury of Kosciusko County in the manner provided by law.

SOURCE: IC 33-5-27.5-5; (02)IN1003.1.289. -->     SECTION 289. IC 33-5-27.5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the LaGrange circuit court. Their salaries shall be paid monthly out of the treasury of LaGrange County as provided by law.
SOURCE: IC 33-5-29.5-7.2; (02)IN1003.1.290. -->     SECTION 290. IC 33-5-29.5-7.2, AS AMENDED BY P.L.254-1999, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7.2. (a) The judge of division No. 1, division No. 2, and division No. 3 of the court may each appoint one (1) full-time magistrate under IC 33-4-7 to serve as the court requires. A magistrate appointed under this section:
        (1) must be a resident of the county; and
        (2) continues in office until removed by the judge that the magistrate serves.
    (b) The appointment of a magistrate under this section must be in writing.
    (c) The judge may specifically determine the duties of the magistrate within the limits established under IC 33-4-7.
    (d) The county executive shall provide and maintain suitable facilities for the use of the magistrate, including necessary furniture and equipment.
    (e) The court shall employ administrative staff necessary to support the functions of the magistrates.
    (f) The county fiscal body shall appropriate sufficient funds for the provision of staff and facilities required under this section.
    (g) A magistrate is entitled to annual compensation as established under IC 33-4-7-9.1. The state shall pay the salary set under IC 33-4-7-9.1.
SOURCE: IC 33-5-29.5-8; (02)IN1003.1.291. -->     SECTION 291. IC 33-5-29.5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) The senior judge of each division may appoint the number of bailiffs, court reporters, probation officers, and other personnel, as in the opinion of the senior judge is necessary to judicially and efficiently facilitate and transact the business of the division. All appointments shall be made without regard to the political affiliation of the appointees. The salaries of the court personnel shall be fixed and paid as provided by law. The officers and persons appointed shall:
        (1) perform the duties prescribed by the senior judge of each respective division; and
        (2) serve at the pleasure of the senior judge.
    (b) The court shall appoint an administrative officer who shall have the duties as the court shall determine necessary to ensure the efficient operation of the court. The court may appoint the number of deputy administrative officers as the court considers necessary to facilitate and transact the business of the court. Any appointment of an administrative officer or deputy administrative officer shall be made without regard to the political affiliation of the appointees. The salaries of the administrative officer and any deputy administrative officer shall be fixed by the court. to be paid out of the county treasury by the county auditor, upon the order of the court, and entered of record. Any administrative officer or deputy administrative officer appointed by the court shall:
        (1) operate under the jurisdiction of the chief judge; and
        (2) serve at the pleasure of the chief judge.
    (c) The court may appoint part-time juvenile referees and magistrates. as provided by IC 31-31-3.
    (d) The court may appoint the number of a probate commissioners commissioner provided for by IC 29-2-2. The probate commissioners shall be vested with the powers and duties provided by IC 29. and determine the commissioner's duties.
SOURCE: IC 33-5-31.1-5; (02)IN1003.1.292. -->     SECTION 292. IC 33-5-31.1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of each court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the LaPorte circuit court. Their salaries shall be paid monthly out of the treasury of LaPorte County as provided by law.
SOURCE: IC 33-5-33.1-8; (02)IN1003.1.293. -->     SECTION 293. IC 33-5-33.1-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. The court may appoint bailiffs, court reporters, probation officers, and such other personnel, including an administrative officer, as necessary to transact the business of the court. The salaries of the personnel shall be fixed and paid as provided by law. However, if the salaries of any of the personnel are not provided by law, the amount and time of payment of such salaries shall be fixed by the court, to be paid out of the county treasury by the county auditor upon the order of the court, and be entered of record. The officers and persons so appointed shall perform such duties as are prescribed by the court. Personnel appointed by the court serve at the pleasure of the court.
SOURCE: IC 33-5-35.5-8; (02)IN1003.1.294. -->     SECTION 294. IC 33-5-35.5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. The judge of each court shall appoint a bailiff and an official court reporter for the court. The salaries of the bailiff and court reporter shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Marshall circuit court. The salaries shall be paid monthly out of the treasury of Marshall County as provided by law.
SOURCE: IC 33-5-35.8-9; (02)IN1003.1.295. -->     SECTION 295. IC 33-5-35.8-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Miami circuit court. Their salaries shall be paid monthly out of the treasury of Miami County as provided by law.
SOURCE: IC 33-5-36.6-5; (02)IN1003.1.296. -->     SECTION 296. IC 33-5-36.6-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. A judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Montgomery circuit court. Their salaries shall be paid monthly out of the treasury of Montgomery County as provided by law.
SOURCE: IC 33-5-37-3; (02)IN1003.1.297. -->     SECTION 297. IC 33-5-37-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) Each judge of the Morgan superior court shall appoint a bailiff and an official court reporter for said court to serve as such during the pleasure of the court.
    (b) The judge shall fix the compensation of the bailiff and official court reporter within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters.
    (c) The compensation shall be paid monthly out of the treasury of Morgan County in the manner provided by law.
SOURCE: IC 33-5-37.2-9; (02)IN1003.1.298. -->     SECTION 298. IC 33-5-37.2-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Newton circuit court. Their salaries shall be paid monthly out of the treasury of Newton County as provided by law.
SOURCE: IC 33-5-37.5-8; (02)IN1003.1.299. -->     SECTION 299. IC 33-5-37.5-8, AS AMENDED BY P.L.196-1999, SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. The judge of a court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court

reporter for the Noble circuit court. Their salaries shall be paid monthly out of the treasury of Noble County as provided by law.

SOURCE: IC 33-5-37.7-9; (02)IN1003.1.300. -->     SECTION 300. IC 33-5-37.7-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for a circuit court. Their salaries shall be paid monthly out of the treasuries of Ohio and Switzerland counties as provided by law.
SOURCE: IC 33-5-37.8-5; (02)IN1003.1.301. -->     SECTION 301. IC 33-5-37.8-5, AS ADDED BY P.L.45-2000, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. The judge may appoint a referee, commissioner, or other personnel as the judge considers necessary to facilitate and transact the business of the court. Their salaries shall be fixed in the same manner as the salaries of the personnel for the Orange circuit court. Their salaries shall be paid monthly out of the treasury of Orange County as provided by law. Personnel appointed under this section continue in office until removed by the judge of the court.
SOURCE: IC 33-5-38.1-5; (02)IN1003.1.302. -->     SECTION 302. IC 33-5-38.1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Posey circuit court. and
        (2) paid monthly out of the treasury of Posey County as provided by law.
SOURCE: IC 33-5-38.2-5; (02)IN1003.1.303. -->     SECTION 303. IC 33-5-38.2-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Pulaski circuit court. and
        (2) paid monthly out of the treasury of Pulaski County as provided by law.
SOURCE: IC 33-5-38.3-5; (02)IN1003.1.304. -->     SECTION 304. IC 33-5-38.3-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Putnam circuit court. and
        (2) paid monthly out of the treasury of Putnam County as provided by law.
SOURCE: IC 33-5-38.5-5; (02)IN1003.1.305. -->     SECTION 305. IC 33-5-38.5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Randolph circuit court. Their salaries shall be paid monthly out of the treasury of Randolph County as provided by law.
SOURCE: IC 33-5-38.7-5; (02)IN1003.1.306. -->     SECTION 306. IC 33-5-38.7-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be         (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Ripley circuit court. and
        (2) paid monthly out of the treasury of Ripley County as provided by law.
SOURCE: IC 33-5-38.8-5; (02)IN1003.1.307. -->     SECTION 307. IC 33-5-38.8-5, AS ADDED BY P.L.45-2000, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. The judge may appoint a referee, commissioner, or other personnel as the judge considers necessary to facilitate and transact the business of the court. Their salaries shall be fixed in the same manner as the salaries of the personnel for the Rush circuit court. Their salaries shall be paid at least monthly out of the treasury of Rush County as provided by law. Personnel appointed under this section continue in office until removed by the judge of the court.
SOURCE: IC 33-5-38.9-5; (02)IN1003.1.308. -->     SECTION 308. IC 33-5-38.9-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Scott circuit court. and
        (2) paid monthly out of the treasury of Scott County as provided by law.
SOURCE: IC 33-5-39-5; (02)IN1003.1.309. -->     SECTION 309. IC 33-5-39-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of each court shall appoint a bailiff and an official court reporter for the court, to serve as such during the pleasure of the appointing judge. The appointing judge shall fix the compensation of the officers within the limits and in the manner as may be prescribed by law concerning bailiffs and official court reporters. The compensation of the officers shall be paid monthly out of the treasury of Shelby County in the manner prescribed by law.
SOURCE: IC 33-5-40-23; (02)IN1003.1.310. -->     SECTION 310. IC 33-5-40-23, AS AMENDED BY P.L.196-1999, SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 23. (a) The court, by rules duly adopted by the court, shall designate one (1) of the judges as chief judge and fix the time he shall preside.
    (b) The chief judge shall be responsible for the operation and conduct of the court and to seeing that the court shall efficiently and judicially operate.
    (c) The chief judge shall do the following:
        (1) Assign cases to a judge of the court or reassign cases from one (1) judge of the court to another judge of the court to ensure the efficient operation and conduct of the court.
        (2) Assign and allocate courtrooms, other rooms, and other facilities to ensure the efficient operation and conduct of the court.
        (3) Annually submit to the fiscal body of St. Joseph County a budget for the court in accordance with rules adopted by the supreme court.
        (4) Make appointments or selections on behalf of the court that are required of a superior court judge under any statute.
        (5) Direct the employment and management of court personnel.
        (6) Conduct cooperative efforts with other courts for establishing and administering shared programs and facilities.
SOURCE: IC 33-5-40-25; (02)IN1003.1.311. -->     SECTION 311. IC 33-5-40-25, AS AMENDED BY P.L.196-1999, SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 25. The court shall, when in its opinion it shall be is necessary, appoint such additional personnel for the proper administration of the court, including but not limited to an administrative officer who shall operate under the jurisdiction of the chief judge.
SOURCE: IC 33-5-40.1-5; (02)IN1003.1.312. -->     SECTION 312. IC 33-5-40.1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries

of the bailiff and official court reporter for the Steuben circuit court. Their salaries shall be paid monthly out of the treasury of Steuben County as provided by law.

SOURCE: IC 33-5-40.5-5; (02)IN1003.1.313. -->     SECTION 313. IC 33-5-40.5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Sullivan circuit court. Their salaries shall be paid monthly out of the treasury of Sullivan County as provided by law.
SOURCE: IC 33-5-42-3; (02)IN1003.1.314. -->     SECTION 314. IC 33-5-42-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) The clerk of the Tippecanoe Circuit Court shall be the clerk of superior court No. 2 of Tippecanoe County and the sheriff of Tippecanoe County shall be the sheriff of superior court No. 2 of Tippecanoe County. The clerk and sheriff shall attend said court and discharge all the duties pertaining to their respective office as they are now or may hereafter be required to do by law with reference to the Tippecanoe Circuit Court.
     (b) The judge of superior court No. 2 of Tippecanoe County shall appoint a bailiff and an official reporter for said court to serve as such during the pleasure of the court; and the judge shall fix their compensation within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters. and the compensation shall be paid monthly out of the treasury of Tippecanoe County, in the manner provided by law. The salary of the judge shall be the same as is provided by law for judges of superior courts.
SOURCE: IC 33-5-42.1-5; (02)IN1003.1.315. -->     SECTION 315. IC 33-5-42.1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Tippecanoe circuit court. Their salaries shall be paid monthly out of the treasury of Tippecanoe County as provided by law.
SOURCE: IC 33-5-42.2-5; (02)IN1003.1.316. -->     SECTION 316. IC 33-5-42.2-5, AS ADDED BY P.L.196-1999, SECTION 56, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judges of Tippecanoe superior court No. 4, No. 5, and No. 6:
        (1) shall each appoint a bailiff and an official court reporter for the court; and
        (2) may each appoint other court personnel necessary to facilitate and transact the business of the court.
A person appointed under this section serves at the pleasure of the judge appointing the person. Their salaries shall be fixed in the same manner as the salaries of the bailiff, official court reporter, and other personnel for the Tippecanoe circuit court. Their salaries shall be paid monthly out of the treasury of Tippecanoe County as provided by law.
SOURCE: IC 33-5-43-17; (02)IN1003.1.317. -->     SECTION 317. IC 33-5-43-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. Each judge of the court shall appoint a court reporter, a bailiff and a riding bailiff for the court whose salary shall be fixed by the court and paid as now provided by law, and who shall serve at the pleasure of the judge making such appointment.
SOURCE: IC 33-5-43-33; (02)IN1003.1.318. -->     SECTION 318. IC 33-5-43-33 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 33. The court shall submit its budget estimates annually under rules adopted by the supreme court. to the auditor of the county for presentment and approval by the county council, as provided in IC 36-2-5.
SOURCE: IC 33-5-44.1-8; (02)IN1003.1.319. -->     SECTION 319. IC 33-5-44.1-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) The court may appoint such number of commissioners, probate commissioners, referees, juvenile referees, bailiffs, court reporters, probation officers, and such other personnel, including but not limited to an administrative officer, as shall in the opinion of the court be necessary to facilitate and transact the business of the court. The salaries of the personnel shall be fixed and paid as provided by law. However, if the salaries of any of the personnel are not provided by law, the amount and time of payment of such salaries shall be fixed by the court, to be paid out of the county treasury by the county auditor upon the order of the court, and be entered on record. The officers and persons so appointed shall perform such duties as are prescribed by the court. Any such commissioners, probate commissioners, referees, juvenile referees, probation officers, and other personnel appointed by the court shall serve at the pleasure of the court.
     (b) Any probate commissioner so appointed by the court may be vested by said court with all suitable powers for the handling and management of the probate and guardianship matters of the court, including the fixing of all bonds, the auditing of accounts of estates and guardianships and trusts, acceptance of reports, accounts and settlements filed in said court, the appointment of personal representatives, guardians and trustees, the probating of wills, the taking and hearing of evidence on or concerning such matters, or any other probate, guardianship or trust matters in litigation before such court, the enforcement of court rules and regulations, and making of

reports to the court including the taking and hearing of evidence together with such commissioner's findings and conclusions regarding the same, all of such matters, nevertheless, to be under the final jurisdiction and decision of the judges of said court.
     (c) Any juvenile referee appointed by the court may be vested by said court with all suitable powers for the handling and management of the juvenile matters of the court, including the fixing of bonds, the taking and hearing of evidence on or concerning any juvenile matters in litigation before the court, the enforcement of court rules and regulations, the making of reports to the court concerning his doings in the above premises, all of such matters, nevertheless, to be under final jurisdiction and decision of the judges of said court.
     (d) For any and all the foregoing purposes, any probate commissioner and juvenile referee shall have the power to summon witnesses to testify before the said commissioner and juvenile referee, to administer oaths and take acknowledgments in connection with and in furtherance of said duties and powers.

SOURCE: IC 33-5-45.1-5; (02)IN1003.1.320. -->     SECTION 320. IC 33-5-45.1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) The judge of the court shall appoint a bailiff and an official court reporter for the court.
    (b) The salaries of the bailiff and the official court reporter shall be
        (1) fixed in the same manner as the salaries of the bailiff and official court reporter for the Wabash circuit court. and
        (2) paid monthly out of the treasury of Wabash County as provided by law.
SOURCE: IC 33-5-45.8-5; (02)IN1003.1.321. -->     SECTION 321. IC 33-5-45.8-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Washington circuit court. Their salaries shall be paid monthly out of the treasury of Washington County as provided by law.
SOURCE: IC 33-5-46-3; (02)IN1003.1.322. -->     SECTION 322. IC 33-5-46-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of said court shall appoint a bailiff and an official court reporter for said court, to serve as such during the pleasure of the court. The judge shall fix their per diem or salary within the limits and in the manner as many may be provided by law concerning bailiffs and official court reporters. The same shall be paid monthly out of the treasury of Wayne County in the manner provided by law.
SOURCE: IC 33-5-47-3; (02)IN1003.1.323. -->     SECTION 323. IC 33-5-47-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. The judge of the Wayne superior court No. 2 shall appoint a bailiff and an official court reporter for the court, to serve as such during the pleasure of the court. The judge shall fix their compensation within the limits and in the manner as may be provided by law concerning bailiffs and official court reporters. The compensation shall be paid monthly out of the treasury of Wayne County in the manner provided by law.
SOURCE: IC 33-5-48-8; (02)IN1003.1.324. -->     SECTION 324. IC 33-5-48-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. The judge of the court may appoint a bailiff, official court reporter, referee, commissioner, and any other personnel as he the judge of the court considers necessary to facilitate and transact the business of the court. The judge of the court shall fix their compensation within the limits and in the manner as provided by law concerning these officers and employees. These personnel shall serve at the pleasure of the court. and be paid monthly in the manner of payment for officers and employees of Wayne circuit court and Wayne superior courts No. 1 and No. 2.
SOURCE: IC 33-5-48.5-5; (02)IN1003.1.325. -->     SECTION 325. IC 33-5-48.5-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court. Their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Wells circuit court. Their salaries shall be paid monthly out of the treasury of Wells County as provided by law.
SOURCE: IC 33-5-49-5; (02)IN1003.1.326. -->     SECTION 326. IC 33-5-49-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the White circuit court. Their salaries shall be paid monthly out of the treasury of White County as provided by law.
SOURCE: IC 33-5-50-5; (02)IN1003.1.327. -->     SECTION 327. IC 33-5-50-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. The judge of the court shall appoint a bailiff and an official court reporter for the court; their salaries shall be fixed in the same manner as the salaries of the bailiff and official court reporter for the Whitley circuit court. Their salaries shall be paid monthly out of the treasury of Whitley County as provided by law.
SOURCE: IC 33-5-50-11; (02)IN1003.1.328. -->     SECTION 328. IC 33-5-50-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) The court has a standard small claims and misdemeanor division.
    (b) If the county executive establishes the position of small claims referee to serve the court The judge of the court may appoint a part-time small claims referee under IC 33-5-2.5 to assist the court in the exercise of its small claims jurisdiction.
    (c) The small claims referee is entitled to reasonable compensation not exceeding twenty thousand dollars ($20,000) as recommended by the judge of the court. to be paid by the county after it is approved by the county fiscal body. The state shall pay fifty percent (50%) of the salary set under this subsection. and the county shall pay the remainder of the salary.
    (d) The county executive shall provide and maintain a suitable courtroom and facilities for the use of the small claims referee, including furniture and equipment, as necessary.
    (e) The court shall employ administrative staff necessary to support the functions of the small claims referee.
    (f) The county fiscal body shall appropriate sufficient funds for the provision of staff and facilities required under this section.
SOURCE: IC 33-8-2-14; (02)IN1003.1.329. -->     SECTION 329. IC 33-8-2-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. Whenever any person shall be appointed judge pro tem under the provisions of this chapter, he shall be entitled to ten dollars ($10.00) for each day he may serve as such judge, to be paid out of the county treasury, where such probate court is held, upon the warrant of the county auditor, based upon the filing of a claim therefor approved by the judge of said court. Any amount in excess of five hundred dollars ($500) allowed to any judge pro tem, during any year shall be deducted by the board of county commissioners from the regular annual salary of the judge of such probate court, making the appointment, except where such judge pro tem shall be appointed on account of change of venue, relationship, interest as former counsel, or absence of judge in case of serious sickness of himself or family. the person is entitled to be paid from the state general fund under rules adopted by the supreme court.
SOURCE: IC 33-8-2-21; (02)IN1003.1.330. -->     SECTION 330. IC 33-8-2-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 21. The same docket fees shall be taxed in the said court as are now or may be provided by law to be taxed in the circuit court, and the said fees, when collected, shall be paid by the clerk to the treasurer of the county to be applied in reimbursing the county for expenses of said court state.
SOURCE: IC 33-8-2-23; (02)IN1003.1.331. -->     SECTION 331. IC 33-8-2-23 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 23. Said probate court may appoint a chief clerk and such other employees as he the

judge of the probate court deems necessary whose salaries shall be fixed by said judge and be paid out of the county treasury by the state.

SOURCE: IC 33-13-4-1; (02)IN1003.1.332. -->     SECTION 332. IC 33-13-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. The judge of the circuit, superior, criminal, probate, and juvenile county courts in each county in the state of Indiana having a population of thirty-five thousand (35,000) or more, according to the last preceding United States census, shall appoint a bailiff and may appoint a riding bailiff for his the judge's court. whose per diem shall be fixed by the court to be paid out of the county treasury. In counties having a population of less than thirty-five thousand (35,000) according to the last preceding United States census, the judge of the circuit court may appoint a bailiff to serve the courts in the county, but if no bailiff be appointed, the sheriff of the county shall perform the duties of the bailiff.
SOURCE: IC 33-13-16-9; (02)IN1003.1.333. -->     SECTION 333. IC 33-13-16-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 9. A temporary judge is entitled to twenty-five dollars ($25) for each day that he the judge serves as a temporary judge, and this payment shall be paid by the county. state.
SOURCE: IC 33-15-23-1; (02)IN1003.1.334. -->     SECTION 334. IC 33-15-23-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) Except as otherwise provided by law, for the purpose of facilitating and expediting the trial of causes, the judge of each circuit, criminal, superior, probate, and juvenile county court of each and every county of this state shall appoint an official reporter, whose duty it shall be, whenever required by such judge, to be promptly present in said court, and to take down in shorthand the oral evidence given in all causes, including both questions and answers, and to note all rulings of the judge in respect to the admission and rejection of evidence and the objections and exceptions thereto, and write out the instructions of the court in jury trials.
    (b) In counties in which the circuit, superior, or probate court sits as a juvenile court, the official reporter of the circuit court, superior court, or probate court, as the case may be, shall report the proceedings of the juvenile court as part of his the official reporter's duties as reporter of the circuit, superior, or probate court. and, except as provided in subsection (c), such reporter shall receive no additional compensation for his services for reporting the proceedings of the juvenile court.
    (c) In counties wherein a circuit court has juvenile jurisdiction, and wherein there is a juvenile referee and the circuit judge is the judge of the juvenile court, the salary of the juvenile court reporter shall be one

hundred and twenty-five dollars ($125) per month which shall be in addition to any compensation such reporter may receive as reporter of the circuit court.
    (d) The official reporters of juvenile courts shall be paid the same amount for their services and in the same manner, have the same duties and be subject to the same restrictions as is provided for by law for the official reporters of the other courts. However, in a county having a population of more than two hundred fifty thousand (250,000), the judge of the juvenile court may appoint court reporters as necessary for compliance with the law in regard to the reporting of cases and facilitating and expediting the trial of causes, each of whom shall receive a salary of not less than three hundred dollars ($300) per month.

SOURCE: IC 33-15-26-1; (02)IN1003.1.335. -->     SECTION 335. IC 33-15-26-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. As used in this chapter,
    (1) "official court reporter" shall mean means any court reporter who is appointed as the official court reporter by the judge of any circuit, superior, or probate, or county court in the state.
    (2) "Census" shall mean the last preceding United States federal decennial census;
    (3) "State salary" shall mean that part of a court reporter's salary which is paid by the state of Indiana;
    (4) "County salary" shall mean that part of a court reporter's salary which is paid by the county;
    (5) "Salary" shall mean the amount of the state salary and the amount of the county salary added together;
    (6) "Judicial circuit" shall mean any county comprising a single judicial circuit or any combination of one (1) or more counties comprising a single judicial circuit.
SOURCE: IC 33-19-1-3; (02)IN1003.1.336. -->     SECTION 336. IC 33-19-1-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) Except for the state share prescribed by IC 33-19-7-1 for semiannual distribution, and as provided under IC 33-17-1-4(e) and IC 33-19-6-1.5, within thirty (30) days after the clerk collects a fee, the clerk shall forward the fee to:
        (1) the county auditor, if the clerk is a clerk of a circuit court; or
        (2) the city or town fiscal officer, if the clerk is the clerk of a city or town court.
    (b) If part of the fee is collected on behalf of another person for service as a juror or witness, the county auditor division of state court administration or city or town fiscal officer shall forward that part of

the fee to the person within forty-five (45) days after the auditor division of state court administration or fiscal officer receives the claim for the fee.
    (c) Except for amounts deposited in a user fee fund established under IC 33-19-8, the county auditor shall distribute fees received from the clerk to:
        (1) the county treasurer for deposit in the county general fund, if the fee belongs to the county; and
        (2) the fiscal officer of a city or town, if the fee belongs to the city or town under IC 33-19-7-3.
    (d) Except for amounts deposited in a user fee fund established under IC 33-19-8, the city or town fiscal officer shall deposit all fees received from a clerk in the treasury of the city or town.
    (e) The clerk shall forward the state share of each fee to the state treasury at the clerk's semiannual settlement for state revenue.

SOURCE: IC 33-19-1-4; (02)IN1003.1.337. -->     SECTION 337. IC 33-19-1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) Jurors of circuit, superior, county, probate, and municipal courts and members of a grand jury are entitled to fees equal to:
        (1) the mileage rate paid to state officers for each mile necessarily traveled to and from the court; and
        (2) payment at the rate of:
            (A) in a county that did not have an ordinance in effect on November 1, 2001, to pay a supplemental fee to jurors from county funds:
                (i)
fifteen dollars ($15) for each day the juror is in actual attendance in court until the jury is impaneled; and
                (B) (ii) forty dollars ($40) for each day the juror is in actual attendance after impaneling and until the jury is discharged; or
             (B) in a county that had an ordinance in effect on November 1, 2001, to pay a supplemental fee to jurors from county funds:
                (i) fifteen dollars ($15) plus the amount of the adopted supplemental fee for each day the juror is in actual attendance in court until the jury is impaneled; and
                (ii) forty dollars ($40) plus the amount of the adopted supplemental fee for each day the juror is in actual attendance after impaneling and until the jury is discharged.

    (b) A county fiscal body may adopt an ordinance to pay from county funds a supplemental fee in addition to the fees prescribed by subsection (a)(2).
    (c) (b) Jurors of city and town courts are entitled to:
        (1) fifteen dollars ($15) per day while in actual attendance; and
        (2) receive a sum for mileage equal to that sum per mile paid to state officers and employees for each mile necessarily traveled to and from the court.
    (d) (c) A city or town fiscal body may adopt an ordinance to pay from city or town funds a supplemental fee in addition to the fee prescribed by subsection (c)(1). (b)(1).
    (e) (d) A prospective juror who is summoned for jury duty and who reports to the summoning court on the day specified in the summons is in actual attendance on that day for the purposes of this section.
SOURCE: IC 33-19-1-7; (02)IN1003.1.338. -->     SECTION 338. IC 33-19-1-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 7. (a) The clerk shall note witness and juror fees when they are claimed and forward the claims to the county auditor or city or town fiscal officer.
    (b) The clerk is not entitled to a fee for providing an affidavit or other proof of attendance to a juror or witness.
    (c) The county auditor or city or town fiscal officer shall disburse juror or witness fees claimed under this section as provided in section 3(b) of this chapter.
     (d) The county auditor or city or town fiscal officer shall forward to the division of state court administration a claim for all jury or witness fees disbursed in the preceding quarter. The division of state court administration shall reimburse the county auditor or town fiscal officer for the cost of jury and witness fees disbursed in the preceding quarter.
SOURCE: IC 33-19-4-3; (02)IN1003.1.339. -->     SECTION 339. IC 33-19-4-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3. (a) This section applies in all actions listed in IC 33-19-5-4, IC 33-19-5-5, and IC 33-19-5-6.
    (b) In an action where there has been or will be a change of venue or transfer from one (1) county to another, the clerk of the court from which the action is transferred shall collect from the party seeking change of venue a fee equal to that required by IC 33-19-5-4, IC 33-19-5-5, or IC 33-19-5-6. The clerk of the transferring court shall forward the fee collected under this section to the clerk of the court to which the action is transferred.
SOURCE: IC 33-19-5-2; (02)IN1003.1.340. -->     SECTION 340. IC 33-19-5-2, AS AMENDED BY P.L.1-2001, SECTION 35, AS AMENDED BY P.L.183-2001, SECTION 5, AND AS AMENDED BY P.L.280-2001, SECTION 19, IS AMENDED AND CORRECTED TO READ AS FOLLOWS [EFFECTIVE JANUARY

1, 2003]: Sec. 2. (a) Except as provided in subsections (d) and (e), for each action that results in a judgment:
        (1) for a violation constituting an infraction; or
        (2) for a violation of an ordinance of a municipal corporation (as defined in IC 36-1-2-10);
the clerk shall collect from the defendant an infraction or ordinance violation costs fee of seventy dollars ($70).
    (b) In addition to the infraction or ordinance violation costs fee collected under this section, the clerk shall collect from the defendant the following fees if they are required under IC 33-19-6:
        (1) A document fee (IC 33-19-6-1, IC 33-19-6-2, IC 33-19-6-3).
        (2) An alcohol and drug services program user fee (IC 33-19-6-7(b)).
        (3) A law enforcement continuing education program fee (IC 33-19-6-7(c)).
        (4) An alcohol and drug countermeasures fee (IC 33-19-6-10).
        (5) A highway work zone fee (IC 33-19-6-14).
        (6) A deferred prosecution fee (IC 33-19-6-16.2).
        (7) A jury fee (IC 33-19-6-17).
        (7) A judicial salaries fee (IC 33-19-6-18).
        (8) A document storage fee (IC 33-19-6-18.1).
        (9) An automated record keeping fee (IC 33-19-6-19).
        (10) A late payment fee (IC 33-19-6-20).

    (c) The clerk shall transfer to the county auditor or fiscal officer of the municipal corporation the following fees, within thirty (30) days after they are collected, for deposit by the auditor or fiscal officer in the user fee fund established under IC 33-19-8:
        (1) The alcohol and drug services program user fee.
        (2) The law enforcement continuing education program fee.
        (3) The following amounts from the deferral program fee:
             (A) Fifty two dollars ($52) of the initial user's fee.
            (B) Ten dollars ($10) of the monthly user's fee.

    (d) The defendant is not liable for any ordinance violation costs fee in an action in which:
        (1) the defendant was charged with an ordinance violation subject to IC 33-6-3;
        (2) the defendant denied the violation under IC 33-6-3-2;
        (3) proceedings in court against the defendant were initiated under IC 34-28-5 (or IC 34-4-32 before its repeal); and
        (4) the defendant was tried and the court entered judgment for the defendant for the violation.


    (e) Instead of the infraction or ordinance violation costs fee prescribed by subsection (a), the clerk shall collect a deferral program fee if an agreement between a prosecuting attorney or an attorney for a municipal corporation and the person charged with a violation entered into under IC 34-28-5-1 (or IC 34-4-32-1 before its repeal) requires payment of those fees by the person charged with the violation. The deferral program fee is:
        (1) an initial user's fee not to exceed fifty-two dollars ($52); and
        (2) a monthly user's fee not to exceed ten dollars ($10) for each month the person remains in the deferral program.
SOURCE: IC 33-19-6-11; (02)IN1003.1.341. -->     SECTION 341. IC 33-19-6-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 11. (a) This section applies to an action in a circuit court in a county that has established a program under IC 9-30-9.
    (b) The probation department clerk shall collect an alcohol abuse deterrent program fee and a medical fee set by the court under IC 9-30-9-8 and deposit it them into the supplemental adult probation services county alcohol abuse deterrent fund.
SOURCE: IC 33-19-6-17; (02)IN1003.1.342. -->     SECTION 342. IC 33-19-6-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. (a) In each action in which a defendant is found to have committed a crime, violated a statute defining an infraction, or violated an ordinance of a municipal corporation, the clerk shall collect a jury fee of two dollars ($2).
    (b) The fee collected under this section shall be deposited into the county user fee fund established by IC 33-19-8-5.
SOURCE: IC 33-19-6-22; (02)IN1003.1.343. -->     SECTION 343. IC 33-19-6-22 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 22. (a) This section applies to a probation officer serving a circuit, superior, probate, or county court.
    (b) A probation officer shall transfer to the clerk a probation user fee collected under any of the following:
        (1) IC 31-40-2-1.
        (2)
IC 35-38-2-1.
SOURCE: IC 33-19-6-23; (02)IN1003.1.344. -->     SECTION 344. IC 33-19-6-23 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 23. (a) This section applies to a probation officer serving a circuit, superior, probate, or county court if a community corrections program does not operate the home detention program.
    (b) A probation officer shall transfer to the clerk a home detention fee collected under IC 35-38-2.5-6.

SOURCE: IC 33-19-6-24; (02)IN1003.1.345. -->     SECTION 345. IC 33-19-6-24 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 24. The clerk shall collect a guardian ad litem or court appointed special advocate user fee ordered under IC 31-15-6-11, IC 31-17-6-9, or IC 31-40-3-1.
SOURCE: IC 33-19-6-25; (02)IN1003.1.346. -->     SECTION 346. IC 33-19-6-25 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 25. The clerk shall collect an amount ordered under IC 33-9-11.5-6 (reimbursement for court appointed legal services) or IC 33-19-2-3 (costs of representation).
SOURCE: IC 33-19-7-1; (02)IN1003.1.347. -->     SECTION 347. IC 33-19-7-1, AS AMENDED BY P.L.183-2001, SECTION 13, AND AS AMENDED BY P.L.280-2001, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) The clerk of a circuit court shall semiannually distribute to the auditor of state as the state share for deposit in the state general fund seventy ninety-seven percent (70%) (97%) of the amount of fees collected under the following:
        (1) IC 33-19-5-1(a) (criminal costs fees).
        (2) IC 33-19-5-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-19-5-3(a) (juvenile costs fees).
        (4) IC 33-19-5-4(a) (civil costs fees).
        (5) IC 33-19-5-5(a) (small claims costs fees).
        (6) IC 33-19-5-6(a) (probate costs fees).
        (7) IC 33-19-6-16.2 (deferred prosecution fees).
    (b) The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the state user fee fund established under IC 33-19-9-2 the following:
        (1) Twenty-five percent (25%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-19-5-1(b)(5).
        (2) Twenty-five percent (25%) of the alcohol and drug countermeasures fees collected under IC 33-19-5-1(b)(6), IC 33-19-5-2(b)(4), and IC 33-19-5-3(b)(5).
        (3) Fifty percent (50%) of the child abuse prevention fees collected under IC 33-19-5-1(b)(7).
        (4) One hundred percent (100%) of the domestic violence prevention and treatment fees collected under IC 33-19-5-1(b)(8).
        (5) One hundred percent (100%) of the highway work zone fees collected under IC 33-19-5-1(b)(9) and IC 33-19-5-2(b)(5).
        (6) One hundred percent (100%) of the safe schools fee collected under IC 33-19-6-16.3.
        (7) One hundred percent (100%) of the automated record keeping fee (IC 33-19-6-19).
    (c) The clerk of a circuit court shall monthly distribute to the county auditor the following:
        (1) Seventy-five percent (75%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-19-5-1(b)(5).
        (2) Seventy-five percent (75%) of the alcohol and drug countermeasures fees collected under IC 33-19-5-1(b)(6), IC 33-19-5-2(b)(4), and IC 33-19-5-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this subsection into the county drug free community fund established under IC 5-2-11.
    (d) The clerk of a circuit court shall monthly distribute to the county auditor fifty percent (50%) of the child abuse prevention fees collected under IC 33-19-5-1(b)(8). The county auditor shall deposit fees distributed by a clerk under this subsection into the county child advocacy fund established under IC 12-17-17.
    (e) The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the state general fund:
        (1) seventy percent (70%) of the amount of the fees described in IC 33-19-6-16.2 (deferred prosecution fee);

        (2) one hundred percent (100%) of the judicial salaries fee. amount of fees collected under IC 33-19-6-17 (jury fee);
        (3) one hundred percent (100%) of the amount of fees collected under IC 33-19-6-22 (probation user fees);
        (4) one hundred percent (100%) of the amount of fees described in IC 33-19-6-23 (home detention fees); and
        (5) one hundred percent (100%) of the informal adjustment program fee collected by the probation department under IC 31-34-8-8 or IC 31-37-9-9.

    (f) The clerk of a circuit court shall monthly distribute to the county auditor one hundred percent (100%) of the late payment fees collected under IC 33-19-6-20. The county auditor shall deposit fees distributed by a clerk under this subsection as follows:
        (1) If directed to do so by an ordinance adopted by the county fiscal body, the county auditor shall deposit:
             (A) forty percent (40%) of the fees in the clerk's record perpetuation fund established under IC 33-19-6-1.5; and
             (B) sixty percent (60%) of the fees in the county general fund.
        (2) If the county fiscal body has not adopted an ordinance under subdivision (1), the county auditor shall deposit all the fees in the county general fund.
    (g) The clerk of the circuit court shall semiannually distribute to the auditor of state for deposit in the sexual assault victims assistance fund established under IC 16-19-13-6 one hundred percent (100%) of the sexual assault victims assistance fees collected under IC 33-19-6-21.
SOURCE: IC 33-19-7-2; (02)IN1003.1.348. -->     SECTION 348. IC 33-19-7-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 2. The clerk of a circuit court shall forward the county share of fees collected to the county auditor in accordance with IC 33-19-1-3(a). The auditor shall retain as the county share twenty-seven percent (27%) of the amount of fees collected under the following:
        (1) IC 33-19-5-1(a) (criminal costs fees).
        (2) IC 33-19-5-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-19-5-3(a) (juvenile costs fees).
        (4) IC 33-19-5-4(a) (civil costs fees).
        (5) IC 33-19-5-5(a) (small claims costs fees).
        (6) IC 33-19-5-6(a) (probate costs fees).
        (7) IC 33-19-6-16.2 (deferred prosecution fees).
SOURCE: IC 33-19-7-4; (02)IN1003.1.349. -->     SECTION 349. IC 33-19-7-4, AS AMENDED BY P.L.183-2001, SECTION 14, AND AS AMENDED BY P.L.280-2001, SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 4. (a) The clerk of a city or town court shall semiannually distribute to the auditor of state as the state share for deposit in the state general fund fifty-five seventy-five percent (55%) (75%) of the amount of fees collected under the following:
        (1) IC 33-19-5-1(a) (criminal costs fees).
        (2) IC 33-19-5-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-19-5-4(a) (civil costs fees).
        (4) IC 33-19-5-5 (small claims costs fees).
        (5) IC 33-19-6-16.2 (deferred prosecution fees).
    (b) Once each month the city or town fiscal officer shall distribute to the county auditor as the county share twenty percent (20%) of the amount of fees collected under the following:
        (1) IC 33-19-5-1(a) (criminal costs fees).
        (2) IC 33-19-5-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-19-5-4(a) (civil costs fees).
        (4) IC 33-19-5-5 (small claims costs fees).
        (5) IC 33-19-6-16.2 (deferred prosecution fees).
    (c) The city or town fiscal officer shall retain twenty-five percent (25%) as the city or town share of the fees collected under the following:
        (1) IC 33-19-5-1(a) (criminal costs fees).
        (2) IC 33-19-5-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-19-5-4(a) (civil costs fees).
        (4) IC 33-19-5-5 (small claims costs fees).
        (5) IC 33-19-6-16.2 (deferred prosecution fees).
    (d) The clerk of a city or town court shall semiannually distribute to the auditor of state for deposit in the state user fee fund established under IC 33-19-9 the following:
        (1) Twenty-five percent (25%) of the drug abuse, prosecution, interdiction, and corrections fees collected under IC 33-19-5-1(b)(5).
        (2) Twenty-five percent (25%) of the alcohol and drug countermeasures fees collected under IC 33-19-5-1(b)(6), IC 33-19-5-2(b)(4), and IC 33-19-5-3(b)(5).
        (3) One hundred percent (100%) of the highway work zone fees collected under IC 33-19-5-1(b)(9) and IC 33-19-5-2(b)(5).
        (4) One hundred percent (100%) of the safe schools fee collected under IC 33-19-6-16.3.
        (5) One hundred percent (100%) of the automated record keeping fee (IC 33-19-6-19).
    (e) The clerk of a city or town court shall monthly distribute to the county auditor the following:
        (1) Seventy-five percent (75%) of the drug abuse, prosecution, interdiction, and corrections fees collected under IC 33-19-5-1(b)(5).
        (2) Seventy-five percent (75%) of the alcohol and drug countermeasures fees collected under IC 33-19-5-1(b)(6), IC 33-19-5-2(b)(4), and IC 33-19-5-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this subsection into the county drug free community fund established under IC 5-2-11.
    (f) The clerk of a city or town court shall semiannually distribute to the auditor of state for deposit in the state general fund:
        (1) fifty-five percent (55%) of the fees collected under IC 33-19-6-16.2 (deferred prosecution fees);
         (2) one hundred percent (100%) of the judicial salaries fee. fees collected under IC 33-19-6-17 (jury fee); and
        (3) two dollars ($2) for each of the following fees collected under IC 33-19-5-2(e) (deferral program fee):

             (A) Each initial user's fee collected.
            (B) Each monthly user's fee collected.

    (g) The clerk of a city or town court shall distribute monthly to the city or town fiscal officer (as defined in IC 36-1-2-7) one hundred percent (100%) of the late payment fees collected under IC 33-19-6-20. The city or town fiscal officer (as defined in IC 36-1-2-7) shall deposit fees distributed by a clerk under this subsection in the city or town general fund.
SOURCE: IC 33-19-8-5; (02)IN1003.1.350. -->     SECTION 350. IC 33-19-8-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) A county user fee fund is established in each county for the purpose of financing various program services. The county fund shall be administered by the county auditor.
    (b) The county fund consists of the following fees collected by a clerk under this article: and by the probation department for the juvenile court under IC 31-34-8-8 or IC 31-37-9-9:
        (1) The pretrial diversion program fee.
        (2) The informal adjustment program fee.
        (3) (2) The marijuana eradication program fee.
        (4) (3) The alcohol and drug services program fee.
        (5) (4) The law enforcement continuing education program fee.
        (6) (5) The deferral program fee.
        (7) The jury fee.
    (c) All of the jury fee and two dollars ($2) of every deferral program fee collected under IC 33-19-5-2(e) shall be deposited by the county auditor in the jury pay fund under IC 33-19-10.
SOURCE: IC 33-22; (02)IN1003.1.351. -->     SECTION 351. IC 33-22 IS ADDED TO THE INDIANA CODE AS A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     ARTICLE 22. PROBATION OFFICERS
    Chapter 1. Definitions
    Sec. 1. The definitions in this chapter apply throughout this article.
    Sec. 2. "Handgun" has the meaning set forth in IC 35-47-1-6.
    Sec. 3. "Juvenile court" has the meaning set forth in IC 31-9-2-70.
    Sec. 4. "Juvenile law" has the meaning set forth in IC 31-9-2-72.
    Chapter 2. Chief Probation Officer
    Sec. 1. A court, or two (2) or more courts acting jointly, may designate a probation officer to direct and supervise the work of the probation department.
    Sec. 2. The judge of the juvenile court shall appoint a chief probation officer.
    Sec. 3. The chief probation officer of a juvenile court, under the direction of the juvenile court, shall supervise the work of the probation department.
    Chapter 3. Probation Officers
    Sec. 1. A court or division of a court authorized to impose probation shall appoint one (1) or more probation officers, depending on the needs of the court, except that two (2) or more divisions within a court, two (2) or more courts within a county, or two (2) or more courts not in the same county may jointly appoint and employ one (1) or more probation officers for the purpose of meeting the needs of the courts.
    Sec. 2. (a) This section does not apply to a person certified as a qualified probation officer before January 1, 2003.
    (b) A person may be appointed as a probation officer after December 31, 2002, only if that person meets the minimum employment qualifications adopted by the supreme court.
    (c) An uncertified person appointed as a probation officer after December 31, 2002, who fails to successfully complete a written examination established by the supreme court within six (6) months after the date of the person's appointment is prohibited from exercising the powers of a probation officer as granted by law.
    Sec. 3. Probation officers serve at the pleasure of the appointing court.
    Sec. 4. The amount and time of payment of salaries of city court probation officers shall be fixed by the court consistent with the rules of the supreme court to be paid out of the city treasury by the city controller. City court probation officers are entitled to their actual expenses necessarily incurred in the performance of their duties.
    Sec. 5. If directed by the appointing court, a probation officer shall give a bond in a sum to be fixed by the court.
    Chapter 4. Probation Staff
    Sec. 1. The courts authorized to appoint probation officers shall appoint administrative personnel needed to properly discharge the probation function. A judge of a juvenile court may appoint an appropriate number of other employees to assist the juvenile probation department.
    Sec. 2. These personnel serve at the pleasure of the appointing court.
    Sec. 3. The amount and time of payment of salaries of administrative personnel in a city or town court shall be fixed by the court to be paid out of the city treasury by the city controller.
    Chapter 5. General Powers and Duties
    Sec. 1. A probation officer is directly responsible to and subject to the orders of the court appointing the probation officer.
    Sec. 2. A probation officer may:
        (1) visit and confer with any person under investigation or under the probation officer's supervision;
        (2) exercise those powers necessary to carry out the probation officer's duties; and
        (3) act as a parole officer for the department of correction when requested by the department of correction and when the request is approved by the court.

    Sec. 3. A probation officer may not carry a handgun while acting in the scope of employment as a probation officer unless all of the following conditions are met:
        (1) The appointing court enters an order authorizing the probation officer to carry the handgun while on duty.
        (2) The probation officer is issued a license to carry the handgun under IC 35-47-2.
        (3) The probation officer successfully completes a handgun safety course certified by the law enforcement training board under IC 5-2-1-9(m).

     Sec. 4. A probation officer shall:
        (1) conduct prehearing and presentence investigations and prepare reports as required by law;
        (2) assist the courts in making pretrial release decisions;
        (3) assist the courts, prosecuting attorneys, and other law enforcement officials in making decisions regarding the diversion of charged individuals to appropriate noncriminal alternatives;
        (4) furnish each person placed on probation under the officer's supervision a written statement of the conditions of probation and instruct the person regarding those conditions;
        (5) supervise and assist persons on probation consistent with conditions of probation imposed by the court;
        (6) bring to the court's attention any modification in the conditions of probation considered advisable;
        (7) notify the court when a violation of a condition of probation occurs;
        (8) cooperate with public and private agencies and other persons concerned with the treatment or welfare of persons on probation and assist them in obtaining services from those agencies and persons;
        (9) keep accurate records of cases investigated by the probation officer and of all cases assigned to the officer by the court and make these records available to the court upon request;
        (10) collect and disburse money from persons under the probation officer's supervision according to the order of the court and keep accurate and complete accounts of those collections and disbursements;
        (11) assist the court in transferring supervision of a person on probation to a court in another jurisdiction; and
        (12) perform other duties required by law or as directed by the court.

     Sec. 5. IC 34-13-3 applies whenever:
        (1) a governmental entity or its employee is sued for civil damages; and
        (2) the civil action arises out of an act within the scope of a probation officer's employment or duties.

    Chapter 6. Juvenile Probation Departments
    Sec. 1. The judge of a juvenile court shall appoint probation officers and an appropriate number of other employees to assist the probation department.
    Sec. 2. A probation officer shall, to carry out the juvenile law:
        (1) conduct the investigations and prepare the reports and recommendations that the court directs and keep a written record of those investigations, reports, and recommendations;
        (2) receive and examine complaints and allegations concerning matters covered by the juvenile law and make preliminary inquiries and investigations;
        (3) implement informal adjustments with the approval of the court;
        (4) prepare and submit the predisposition report required for a dispositional hearing under the juvenile law;
        (5) supervise and assist by all suitable methods a child placed on probation or in the probation officer's care by order of the court or other legal authority;
        (6) keep complete records of the probation officer's work and comply with any order of the court concerning the collection,

protection, and distribution of any money or other property coming into the probation officer's hands;
        (7) with the cooperation and assistance of the county office of family and children, prepare and monitor performance of any case plan and ensure compliance with all other procedures, as necessary or appropriate to satisfy the requirements of Title IV-E of the Social Security Act (42 U.S.C. 670 et seq.), and applicable federal regulations for federal financial participation in the payment of the cost of services provided to an eligible child; and
        (8) perform the other functions that are designated by the juvenile law or by the court in accordance with the juvenile law.
    Sec. 3. Except for carrying a handgun as authorized under IC 33-22-5-3, a probation officer does not have the powers of a law enforcement officer.

    Chapter 7. Duties; Judicial Conference of Indiana
    Sec. 1. The judicial conference of Indiana shall:
        (1) keep informed of the work of all probation departments;
        (2) inform courts and probation departments of legislation concerning probation and of other developments in probation; and
        (3) submit to the general assembly before January 15 of each year the report prepared by the division of state court administration containing statistical and other information relating to probation.
    Sec. 2. The judicial conference of Indiana may:
        (1) visit and inspect any probation department and confer with probation officers and judges administering probation; and
        (2) under rules adopted by the supreme court, require probation departments to submit periodic reports of their work on forms furnished by the conference.
    Sec. 3. The judicial conference of Indiana may arrange conferences or workshops for probation officers and judges administering probation in order to enhance knowledge about and improve the delivery of probation services. The expenses of probation officers and judges incurred in attending these conferences or workshops shall be paid in the same manner as other expenses are paid in the courts in which they serve.
    Sec. 4. The judicial conference of Indiana shall provide probation departments with training and technical assistance for:


        (1) the implementation and management of probation case classification; and
        (2) the development and use of workload information.
    Sec. 5. The judicial conference of Indiana shall, in cooperation with the division of family and children and the department of education, provide probation departments with training and technical assistance relating to special education services and programs that may be available for delinquent children or children in need of services. The subjects addressed by the training and technical assistance must include the following:
        (1) Eligibility standards.
        (2) Testing requirements and procedures.
        (3) Procedures and requirements for placement in programs provided by school corporations or special education cooperatives under IC 20-1-6.
        (4) Procedures and requirements for placement in residential special education institutions or facilities under IC 20-1-6-19 and 511 IAC 7-12-5.
        (5) Development and implementation of individual education programs for eligible children:
            (A) in accordance with applicable requirements of state and federal laws and rules; and
            (B) in coordination with:
                (i) individual case plans; and
                (ii) informal adjustment programs or dispositional decrees entered by courts having juvenile jurisdiction under IC 31-34 and IC 31-37.
        (6) Sources of federal, state, and local funding that are or may be available to support special education programs for children for whom proceedings have been initiated under IC 31-34 and IC 31-37. Training for probation departments may be provided jointly with training provided to child welfare caseworkers relating to the same subject matter.
    Sec. 6. The judicial conference of Indiana shall make recommendations to courts and probation departments concerning:
        (1) selection, training, distribution, and removal of probation officers;
        (2) methods and procedures for the administration of probation, including investigation, supervision, workloads, recordkeeping, and reporting; and
        (3) use of citizen volunteers and public and private agencies.
    Sec. 7. There is established within the judicial conference of Indiana a probation standards and practices advisory committee, consisting of the following ten (10) members, not more than five (5) of whom may be affiliated with the same political party:
        (1) the chief justice of the supreme court or the chief justice's designee, who shall serve as chairman of the committee;
        (2) the commissioner or the commissioner's designee;
        (3) one (1) judge of a circuit or superior court having criminal jurisdiction;
        (4) one (1) judge of a county or municipal court having criminal jurisdiction;
        (5) one (1) judge of a circuit or superior court having juvenile jurisdiction;
        (6) one (1) supervising probation officer;
        (7) two (2) probation officers, one (1) whose primary responsibility is adult supervision and one (1) whose primary responsibility is juvenile supervision; and
        (8) two (2) lay persons.
    Sec. 8. (a) Other than the commissioner and the chief justice, who shall serve by virtue of their offices, or their designees, members of the probation standards and practices advisory committee shall be appointed by the governor. All appointments shall be made for terms of four (4) years or while maintaining the position held at the time of appointment to the committee, whichever is the lesser period. Appointees shall serve as members of the committee only while holding the office or position held at the time of appointment.
    (b) Vacancies on the committee caused by resignation, death, or removal shall be filled for the unexpired term of the member succeeded in the same manner as the original appointment. Members may be reappointed for additional terms. The appointed members of the committee may be removed by the governor for cause after an opportunity to be heard by the governor upon due notice.
    (c) Each appointed member is entitled to the minimum salary per diem as provided in IC 4-10-11-2.1(b) for each day engaged in the official business of the committee. In addition, each member is entitled to reimbursement for traveling and other expenses as provided in the travel policies and procedures established by the department of administration and approved by the budget agency. The committee shall meet at least three (3) times a year and at other times at the call of the chairman. The chairman shall call the organizational meeting of the committee within thirty (30) days

after the last initial appointment to the committee has been made by the governor. For the purposes of transacting business, a majority of the membership constitutes a quorum.
    Sec. 9. The conference may delegate any of the functions described in this chapter to the judicial center.

     Sec. 10. (a) Every probation department shall annually compile and make available to the judicial conference of Indiana upon request accurate statistical information pertaining to its operation, including:
        (1) presentence and predisposition reports prepared;
        (2) investigations and reports regarding cases assigned to the probation department and disposed of before trial;
        (3) cases disposed of by termination of supervision, including revocation of probation;
        (4) that probation department's operational costs, including salaries of probation officers and administrative personnel; and
        (5) persons employed.
    (b) Before January 5 of each year, each probation department shall send to the judicial conference of Indiana the following statistical information concerning home detention for the preceding calendar year:
        (1) The number of persons supervised by the department or by a community corrections program who were placed in home detention under IC 35-38-2.5.
        (2) The number of persons supervised by the department or by a community corrections program who successfully completed a period of home detention ordered under IC 35-38-2.5.
        (3) The number of persons supervised by the department or by a community corrections program who failed to complete a period of home detention ordered under IC 35-38-2.5, and a description of the subsequent disposition for those persons.
        (4) For each person under home detention supervised by the department or by a community corrections program, a description of the most serious offense for which the person was convicted, resulting in a sentence that included a period of home detention ordered as a condition of probation.
        (5) The amount of home detention user fees collected by the department under IC 35-38-2.5.
        (6) The amount of home detention user fees deposited into the community corrections home detention fund for the county in which the department is located.


        (7) The average expense per person placed in home detention supervised by the department with a monitoring device.
        (8) The average expense per person placed in home detention supervised by the department without a monitoring device.

     Chapter 8. Supreme Court Rules
    Sec. 1. The supreme court may adopt rules consistent with this chapter, prescribing minimum standards concerning:
        (1) educational and occupational qualifications for employment as a probation officer;
        (2) compensation of probation officers;
        (3) protection of probation records and disclosure of information contained in those records; and
        (4) presentence investigation reports.

SOURCE: IC 34-6-2-20; (02)IN1003.1.352. -->     SECTION 352. IC 34-6-2-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 20. "Charitable entity", for purposes of IC 34-30-5, means any entity exempted from the Indiana state gross income retail tax under IC 6-2.1-3-20. IC 6-2.5-5-21(b)(1)(B).
SOURCE: IC 35-38-1-9; (02)IN1003.1.353. -->     SECTION 353. IC 35-38-1-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003] : Sec. 9. (a) As used in this chapter, "recommendation" and "victim" have the meanings set out in IC 35-35-3-1.
    (b) The presentence investigation consists of the gathering of information with respect to:
        (1) the circumstances attending the commission of the offense;
        (2) the convicted person's history of delinquency or criminality, social history, employment history, family situation, economic status, education, and personal habits; and
        (3) the impact of the crime upon the victim.
    (c) The presentence investigation may include any matter that the probation officer conducting the investigation believes is relevant to the question of sentence, and must include:
        (1) any matters the court directs to be included;
        (2) any written statements submitted to the prosecuting attorney by a victim under IC 35-35-3;
        (3) any written statements submitted to the probation officer by a victim; and
        (4) preparation of the victim impact statement required under section 8.5 of this chapter.
    (d) If there are no written statements submitted to the probation officer, he the probation officer shall certify to the court:
        (1) that he the probation officer has attempted to contact the victim; and
        (2) that if he the probation officer has contacted the victim, he the probation officer has offered to accept the written statements of the victim or to reduce his the victim's oral statements to writing, concerning the sentence, including the acceptance of any recommendation.
    (e) A presentence investigation report prepared by a probation officer must include the information and comply with any other requirements established in the rules adopted under IC 11-13-1-8. by the supreme court.
SOURCE: IC 35-38-2-1; (02)IN1003.1.354. -->     SECTION 354. IC 35-38-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. (a) Whenever it places a person on probation, the court shall:
        (1) specify in the record the conditions of the probation; and
        (2) advise the person that if the person violates a condition of probation during the probationary period, a petition to revoke probation may be filed before the earlier of the following:
            (A) One (1) year after the termination of probation.
            (B) Forty-five (45) days after the state receives notice of the violation.
    (b) In addition, if the person was convicted of a felony and is placed on probation, the court shall order the person to pay to the probation department clerk the user's fee prescribed under subsection (c). If the person was convicted of a misdemeanor, the court may order the person to pay the user's fee prescribed under subsection (d). The court may:
        (1) modify the conditions (except a fee payment under subsection (c)); or
        (2) terminate the probation;
at any time. If the person commits an additional crime, the court may revoke the probation.
    (c) In addition to any other conditions of probation, the court shall order each person convicted of a felony to pay:
        (1) not less than twenty-five dollars ($25) nor more than one hundred dollars ($100) as an initial probation user's fee;
        (2) a monthly probation user's fee of not less than five dollars ($5) nor more than fifteen dollars ($15) for each month that the person remains on probation;
        (3) the costs of the laboratory test or series of tests to detect and confirm the presence of the human immunodeficiency virus (HIV) antigen or antibodies to the human immunodeficiency virus (HIV)

if such tests are required by the court under section 2.3 of this chapter; and
        (4) an alcohol abuse deterrent fee and a medical fee set by the court under IC 9-30-9-8, if the court has referred the defendant to an alcohol abuse deterrent program;
to the probation department. clerk.
    (d) In addition to any other conditions of probation, the court may order each person convicted of a misdemeanor to pay:
        (1) not more than a fifty dollar ($50) initial probation user's fee;
        (2) not more than a ten dollar ($10) monthly probation user's fee for each month that the person remains on probation; and
        (3) the costs of the laboratory test or series of tests to detect and confirm the presence of the human immunodeficiency virus (HIV) antigen or antibodies to the human immunodeficiency virus (HIV) if such tests are required by the court under section 2.3 of this chapter;
to the probation department. clerk.
    (e) All money collected by the probation department under this section shall be transferred to the county treasurer who shall deposit the money into the county supplemental adult probation services fund. The fiscal body of the county shall appropriate money from the county supplemental adult probation services fund to the county, superior, circuit, or municipal court of the county that provides probation services to adults.
    (f) (e) All money collected by the probation department of a city or town court under this section shall be transferred to the fiscal officer of the city or town. The fiscal officer shall deposit the money into the local supplemental adult probation services city or town user fee fund. The fiscal body of the city or town shall appropriate money from the local supplemental adult probation services fund to the city or town court of the city or town for the court's use in providing probation services to adults or for the court's use for other purposes as may be appropriated by the fiscal body. Money may be appropriated under this subsection only to those city or town courts that have an adult probation services program. If a city or town court does not have such a program, the money collected by the probation department must be transferred and appropriated as provided under subsection (e). to the auditor of state for deposit in the state general fund.
    (g) (f) Except as provided in subsection (i), (h), the county or local supplemental adult probation services fund may be used only to supplement probation services and to increase salaries for probation officers. A supplemental probation services fund may not be used to

replace other funding of probation services. Any money remaining in the fund at the end of the year does not revert to any other fund but continues in the county or local supplemental adult probation services fund.
    (h) (g) A person placed on probation for more than one (1) crime may not be required to pay more than:
        (1) one (1) initial probation user's fee; and
        (2) one (1) monthly probation user's fee per month;
to the probation department.
    (i) (h) This subsection applies to a city or town located in a county having a population of more than one hundred fifty thousand (150,000) but less than one hundred sixty thousand (160,000). Any money remaining in the local supplemental adult probation services fund at the end of the local fiscal year may be appropriated by the city or town fiscal body to the city or town court for use by the court for purposes determined by the fiscal body.

SOURCE: IC 35-38-2.5-8; (02)IN1003.1.355. -->     SECTION 355. IC 35-38-2.5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 8. (a) All home detention fees collected by a county based probation department shall be transferred to the county treasurer who shall deposit the fees into the county supplemental adult or juvenile probation services fund. The expenses of administering a county based probation department home detention program, including the purchase of monitoring devices and other supervision expenses, shall be paid from the fund. by the state.
    (b) All home detention fees collected by the probation department of a city or town court shall be transferred to the fiscal officer of the city or town who shall deposit the fees into the local supplemental adult or juvenile probation services fund. The expenses of administering a home detention program, including the purchase of monitoring devices and other supervision expenses shall be paid from the fund.
    (c) All home detention fees collected by a community corrections program, except any funds received by a community corrections program under IC 11-12, shall be deposited into the community corrections home detention fund established for the county under IC 11-12-7-1. The expenses of administering a community corrections home detention program, including the purchase of monitoring devices and other supervision expenses, shall be paid from the fund.
SOURCE: IC 36-2-10-16; (02)IN1003.1.356. -->     SECTION 356. IC 36-2-10-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 16. (a) Before the sixteenth day of each month, the treasurer shall prepare a report

showing, as of the close of business on the last day of the preceding month, the following items:
        (1) The total amount of taxes collected and not included in the last semiannual settlement of taxes, and the amount of taxes omitted from any preceding semiannual settlements, except for taxes advanced to the state or a municipal corporation in the county and for which an advance settlement has been made.
        (2) The total amount of taxes collected under IC 6-5-10, IC 6-5-11, and IC 6-5-12 and distributions under IC 6-5.5 that are not included in the last semiannual settlement of taxes, and the amount of those taxes omitted from any preceding semiannual settlements.
        (3) The totals of money received from all other sources and not receipted into the ledger fund accounts of the county at the end of the month.
        (4) The total of the balances in all ledger fund accounts.
        (5) The total amount of cash in each depository at the close of business on the last day of the month.
        (6) The total of county warrants issued against each depository that are outstanding and unpaid at the end of the month.
        (7) The record balance of money in each depository at the end of the month.
        (8) The cash in the office at the close of the last day of the month.
        (9) Other items for which the treasurer is entitled to credit.
The treasurer shall prepare the report in quadruplicate and verify each copy. The treasurer shall retain one (1) copy as a public record and file three (3) copies with the county auditor. The state board of accounts shall prescribe forms for the report in the detail it considers necessary under this section and IC 5-13-6-1.
    (b) The treasurer shall make the monthly report required by IC 36-2-6-14.

SOURCE: IC 36-3-7-5; (02)IN1003.1.357. -->     SECTION 357. IC 36-3-7-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 5. (a) Liens for taxes levied by the consolidated city are perfected when certified to the auditor of the county.
    (b) Liens created when the city enters upon property to make improvements to bring it into compliance with a city ordinance, and liens created upon failure to pay charges assessed by the city for services shall be certified to the auditor, after the adoption of a resolution confirming the incurred expense by the appropriate city department, board, or other agency. In addition, the resolution must state the name of the owner as it appears on the township assessor's

record and a description of the property. These liens are perfected when certified to the auditor.
    (c) The amount of a perfected lien shall be placed on the tax duplicate by the auditor in the nature of a delinquent tax subject to enforcement and collection as otherwise provided under IC 6-1.1-22, IC 6-1.1-24, and IC 6-1.1-25. However, the amount of the lien is not considered a tax within the meaning of IC 6-1.1-21-2(b) and shall not be included as a part of either a total county tax levy under IC 6-1.1-21-2(g) or the tax liability of a taxpayer under IC 6-1.1-21-5 for purposes of the tax credit computations under IC 6-1.1-21-4 and IC 6-1.1-21-5. IC 6-1.1-21.1-4.

SOURCE: IC 36-7-13-3.8; (02)IN1003.1.358. -->     SECTION 358. IC 36-7-13-3.8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 3.8. As used in this chapter, "state and local income taxes" means taxes imposed under any of the following:
        (1) IC 6-2.1 (the gross income tax).
        (2) (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
        (3) IC 6-3-8 (the supplemental net income tax).
        (4) (2) IC 6-3.5-1.1 (county adjusted gross income tax).
        (5) (3) IC 6-3.5-6 (county option income tax).
        (6) (4) IC 6-3.5-7 (county economic development income tax).
SOURCE: IC 36-7-13-15; (02)IN1003.1.359. -->     SECTION 359. IC 36-7-13-15, AS AMENDED BY P.L.174-2001, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 15. (a) If an advisory commission on industrial development designates a district under this chapter or the legislative body of a county or municipality adopts an ordinance designating a district under section 10.5 of this chapter, the treasurer of state shall establish an incremental tax financing fund for the county. The fund shall be administered by the treasurer of state. Money in the fund does not revert to the state general fund at the end of a state fiscal year.
    (b) Subject to subsection (c), the following amounts shall be deposited during each state fiscal year in the incremental tax financing fund established for the county under subsection (a):
        (1) The aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 by businesses operating in the district, until the amount of state gross retail and use taxes deposited equals the gross retail incremental amount for the district.
        (2) The aggregate amount of state and local income taxes paid by employees employed in the district with respect to wages earned for work in the district, until the amount of state and local income taxes deposited equals the income tax incremental amount.
    (c) The aggregate amount of revenues that is:
        (1) attributable to:
            (A) the state gross retail and use taxes established under IC 6-2.5; and
            (B) the gross income tax established under IC 6-2.1;
            (C) (B) the adjusted gross income tax established under IC 6-3-1 through IC 6-3-7; and
            (D) the supplemental net income tax established under IC 6-3-8; and
        (2) deposited during any state fiscal year in each incremental tax financing fund established for a county;
may not exceed one million dollars ($1,000,000) per county.
    (d) On or before the twentieth day of each month, all amounts held in the incremental tax financing fund established for a county shall be distributed to the district's advisory commission on industrial development for deposit in the industrial development fund of the unit that requested designation of the district.
SOURCE: IC 36-7-14-37; (02)IN1003.1.360. -->     SECTION 360. IC 36-7-14-37 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 37. (a) Real property acquired by the redevelopment district is exempt from taxation while owned by the district.
    (b) All receipts of the department of redevelopment, including receipts from the sale of real property, personal property, and materials disposed of, are exempt from all taxes. including the gross income tax.
    (c) All other property of the department of redevelopment is exempt from taxation.
SOURCE: IC 36-7-14-39; (02)IN1003.1.361. -->     SECTION 361. IC 36-7-14-39 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 39. (a) As used in this section:
    "Allocation area" means that part of a blighted area to which an allocation provision of a declaratory resolution adopted under section 15 of this chapter refers for purposes of distribution and allocation of property taxes.
    "Base assessed value" means the following:
        (1) If an allocation provision is adopted after June 30, 1995, in a declaratory resolution or an amendment to a declaratory resolution establishing an economic development area:
            (A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
            (B) to the extent that it is not included in clause (A), the net assessed value of property that is assessed as residential property under the rules of the state board of tax commissioners, department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
        (2) If an allocation provision is adopted after June 30, 1997, in a declaratory resolution or an amendment to a declaratory resolution establishing a blighted area:
            (A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
            (B) to the extent that it is not included in clause (A), the net assessed value of property that is assessed as residential property under the rules of the state board of tax commissioners, department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
        (3) If:
            (A) an allocation provision adopted before June 30, 1995, in a declaratory resolution or an amendment to a declaratory resolution establishing a blighted area expires after June 30, 1997; and
            (B) after June 30, 1997, a new allocation provision is included in an amendment to the declaratory resolution;
        the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision adopted after June 30, 1997, as adjusted under subsection (h).
        (4) Except as provided in subdivision (5), for all other allocation areas, the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h).
        (5) If an allocation area established in an economic development area before July 1, 1995, is expanded after June 30, 1995, the definition in subdivision (1) applies to the expanded portion of the area added after June 30, 1995.
        (6) If an allocation area established in a blighted area before July 1, 1997, is expanded after June 30, 1997, the definition in

subdivision (2) applies to the expanded portion of the area added after June 30, 1997.
    Except as provided in section 39.3 of this chapter, "property taxes" means taxes imposed under IC 6-1.1 on real property. However, upon approval by a resolution of the redevelopment commission adopted before June 1, 1987, "property taxes" also includes taxes imposed under IC 6-1.1 on depreciable personal property. If a redevelopment commission adopted before June 1, 1987, a resolution to include within the definition of property taxes taxes imposed under IC 6-1.1 on depreciable personal property that has a useful life in excess of eight (8) years, the commission may by resolution determine the percentage of taxes imposed under IC 6-1.1 on all depreciable personal property that will be included within the definition of property taxes. However, the percentage included must not exceed twenty-five percent (25%) of the taxes imposed under IC 6-1.1 on all depreciable personal property.
    (b) A declaratory resolution adopted under section 15 of this chapter before January 1, 2006, may include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section. A declaratory resolution previously adopted may include an allocation provision by the amendment of that declaratory resolution before January 1, 2006, in accordance with the procedures required for its original adoption. A declaratory resolution or an amendment that establishes an allocation provision after June 30, 1995, must specify an expiration date for the allocation provision that may not be more than thirty (30) years after the date on which the allocation provision is established. However, if bonds or other obligations that were scheduled when issued to mature before the specified expiration date and that are payable only from allocated tax proceeds with respect to the allocation area remain outstanding as of the expiration date, the allocation provision does not expire until all of the bonds or other obligations are no longer outstanding. The allocation provision may apply to all or part of the blighted area. The allocation provision must require that any property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in the allocation area be allocated and distributed as follows:
        (1) Except as otherwise provided in this section, the proceeds of the taxes attributable to the lesser of:
            (A) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
            (B) the base assessed value;


        shall be allocated to and, when collected, paid into the funds of the respective taxing units.
        (2) Except as otherwise provided in this section, property tax proceeds in excess of those described in subdivision (1) shall be allocated to the redevelopment district and, when collected, paid into an allocation fund for that allocation area that may be used by the redevelopment district only to do one (1) or more of the following:
            (A) Pay the principal of and interest on any obligations payable solely from allocated tax proceeds which are incurred by the redevelopment district for the purpose of financing or refinancing the redevelopment of that allocation area.
            (B) Establish, augment, or restore the debt service reserve for bonds payable solely or in part from allocated tax proceeds in that allocation area.
            (C) Pay the principal of and interest on bonds payable from allocated tax proceeds in that allocation area and from the special tax levied under section 27 of this chapter.
            (D) Pay the principal of and interest on bonds issued by the unit to pay for local public improvements in or serving that allocation area.
            (E) Pay premiums on the redemption before maturity of bonds payable solely or in part from allocated tax proceeds in that allocation area.
            (F) Make payments on leases payable from allocated tax proceeds in that allocation area under section 25.2 of this chapter.
            (G) Reimburse the unit for expenditures made by it for local public improvements (which include buildings, parking facilities, and other items described in section 25.1(a) of this chapter) in or serving that allocation area.
            (H) Reimburse the unit for rentals paid by it for a building or parking facility in or serving that allocation area under any lease entered into under IC 36-1-10.
            (I) Pay all or a portion of a property tax replacement credit to taxpayers in an allocation area as determined by the redevelopment commission. This credit equals the amount determined under the following STEPS for each taxpayer in a taxing district (as defined in IC 6-1.1-1-20) that contains all or part of the allocation area:
            STEP ONE: Determine that part of the sum of the amounts under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2), IC 6-1.1-21-2(g)(3),

IC 6-1.1-21-2(g)(4), and IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
            STEP TWO: Divide:
                (A) that part of twenty percent (20%) of each county's total county tax levy payable that year as determined under IC 6-1.1-21-4 that is attributable to the taxing district; by
                (B) the STEP ONE sum.
            STEP THREE: Multiply:
                (A) the STEP TWO quotient; times
                (B) the total amount of the taxpayer's property taxes levied in the taxing district that have been allocated during that year to an allocation fund under this section.
            If not all the taxpayers in an allocation area receive the credit in full, each taxpayer in the allocation area is entitled to receive the same proportion of the credit. A taxpayer may not receive a credit under this section and a credit under section 39.5 of this chapter in the same year.
            (J) (I) Pay expenses incurred by the redevelopment commission for local public improvements that are in the allocation area or serving the allocation area. Public improvements include buildings, parking facilities, and other items described in section 25.1(a) of this chapter.
            (K) (J) Reimburse public and private entities for expenses incurred in training employees of industrial facilities that are located:
                (i) in the allocation area; and
                (ii) on a parcel of real property that has been classified as industrial property under the rules of the state board of tax commissioners department of local government finance.
            However, the total amount of money spent for this purpose in any year may not exceed the total amount of money in the allocation fund that is attributable to property taxes paid by the industrial facilities described in this clause. The reimbursements under this clause must be made within three (3) years after the date on which the investments that are the basis for the increment financing are made.
        The allocation fund may not be used for operating expenses of the commission.
        (3) Except as provided in subsection (g), before July 15 of each year the commission shall do the following:
            (A) Determine the amount, if any, by which the base assessed value when multiplied by the estimated tax rate of the allocation

area will exceed the amount of assessed value needed to produce the property taxes necessary to make, when due, principal and interest payments on bonds described in subdivision (2) plus the amount necessary for other purposes described in subdivision (2).
            (B) Notify the county auditor of the amount, if any, of the amount of excess assessed value that the commission has determined may be allocated to the respective taxing units in the manner prescribed in subdivision (1). The commission may not authorize an allocation of assessed value to the respective taxing units under this subdivision if to do so would endanger the interests of the holders of bonds described in subdivision (2) or lessors under section 25.3 of this chapter.
    (c) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the allocation area that is annexed by any taxing unit after the effective date of the allocation provision of the declaratory resolution is the lesser of:
        (1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
        (2) the base assessed value.
    (d) Property tax proceeds allocable to the redevelopment district under subsection (b)(2) may, subject to subsection (b)(3), be irrevocably pledged by the redevelopment district for payment as set forth in subsection (b)(2).
    (e) Notwithstanding any other law, each assessor shall, upon petition of the redevelopment commission, reassess the taxable property situated upon or in, or added to, the allocation area, effective on the next assessment date after the petition.
    (f) Notwithstanding any other law, the assessed value of all taxable property in the allocation area, for purposes of tax limitation property tax replacement, and formulation of the budget, tax rate, and tax levy for each political subdivision in which the property is located is the lesser of:
        (1) the assessed value of the property as valued without regard to this section; or
        (2) the base assessed value.
    (g) If any part of the allocation area is located in an enterprise zone created under IC 4-4-6.1, the unit that designated the allocation area shall create funds as specified in this subsection. A unit that has obligations, bonds, or leases payable from allocated tax proceeds under subsection (b)(2) shall establish an allocation fund for the purposes

specified in subsection (b)(2) and a special zone fund. Such a unit shall, until the end of the enterprise zone phase out period, deposit each year in the special zone fund any amount in the allocation fund derived from property tax proceeds in excess of those described in subsection (b)(1) from property located in the enterprise zone that exceeds the amount sufficient for the purposes specified in subsection (b)(2) for the year. The amount sufficient for purposes specified in subsection (b)(2) for the year shall be determined based on the pro rata portion of such current property tax proceeds from the portion of the enterprise zone that is within the allocation area as compared to all such current property tax proceeds derived from the allocation area. A unit that has no obligations, bonds, or leases payable from allocated tax proceeds under subsection (b)(2) shall establish a special zone fund and deposit all the property tax proceeds in excess of those described in subsection (b)(1) in the fund derived from property tax proceeds in excess of those described in subsection (b)(1) from property located in the enterprise zone. The unit that creates the special zone fund shall use the fund (based on the recommendations of the urban enterprise association) for programs in job training, job enrichment, and basic skill development that are designed to benefit residents and employers in the enterprise zone or other purposes specified in subsection (b)(2), except that where reference is made in subsection (b)(2) to allocation area it shall refer for purposes of payments from the special zone fund only to that portion of the allocation area that is also located in the enterprise zone. Those programs shall reserve at least one-half (1/2) of their enrollment in any session for residents of the enterprise zone.
    (h) The state board of accounts and state board of tax commissioners department of local government finance shall make the rules and prescribe the forms and procedures that they consider expedient for the implementation of this chapter. After each general reassessment under IC 6-1.1-4, the state board of tax commissioners department of local government finance shall adjust the base assessed value one (1) time to neutralize any effect of the general reassessment on the property tax proceeds allocated to the redevelopment district under this section. However, the adjustment may not include the effect of property tax abatements under IC 6-1.1-12.1, and the adjustment may not produce less property tax proceeds allocable to the redevelopment district under subsection (b)(2) than would otherwise have been received if the general reassessment had not occurred. The state board of tax commissioners department of local government finance may prescribe procedures for county and township officials to follow to assist the state board in making the adjustments.


SOURCE: IC 36-7-14.5-12.5; (02)IN1003.1.362. -->     SECTION 362. IC 36-7-14.5-12.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 12.5. (a) This section applies only to an authority in a county having a United States government military base that is scheduled for closing or is completely or partially inactive or closed.
    (b) In order to accomplish the purposes set forth in section 11(b) of this chapter, an authority may create an economic development area:
        (1) by following the procedures set forth in IC 36-7-14-41 for the establishment of an economic development area by a redevelopment commission; and
        (2) with the same effect as if the economic development area was created by a redevelopment commission.
However, an authority may not include in an economic development area created under this section any area that was declared a blighted area, an urban renewal area, or an economic development area under IC 36-7-14.
    (c) In order to accomplish the purposes set forth in section 11(b) of this chapter, an authority may do the following in a manner that serves an economic development area created under this section:
        (1) Acquire by purchase, exchange, gift, grant, condemnation, or lease, or any combination of methods, any personal property or interest in real property needed for the redevelopment of economic development areas located within the corporate boundaries of the unit.
        (2) Hold, use, sell (by conveyance by deed, land sale contract, or other instrument), exchange, lease, rent, or otherwise dispose of property acquired for use in the redevelopment of economic development areas on the terms and conditions that the authority considers best for the unit and the unit's inhabitants.
        (3) Sell, lease, or grant interests in all or part of the real property acquired for redevelopment purposes to any other department of the unit or to any other governmental agency for public ways, levees, sewerage, parks, playgrounds, schools, and other public purposes on any terms that may be agreed on.
        (4) Clear real property acquired for redevelopment purposes.
        (5) Repair and maintain structures acquired for redevelopment purposes.
        (6) Remodel, rebuild, enlarge, or make major structural improvements on structures acquired for redevelopment purposes.
        (7) Survey or examine any land to determine whether the land should be included within an economic development area to be

acquired for redevelopment purposes and to determine the value of that land.
        (8) Appear before any other department or agency of the unit, or before any other governmental agency in respect to any matter affecting:
            (A) real property acquired or being acquired for redevelopment purposes; or
            (B) any economic development area within the jurisdiction of the authority.
        (9) Institute or defend in the name of the unit any civil action, but all actions against the authority must be brought in the circuit or superior court of the county where the authority is located.
        (10) Use any legal or equitable remedy that is necessary or considered proper to protect and enforce the rights of and perform the duties of the authority.
        (11) Exercise the power of eminent domain in the name of and within the corporate boundaries of the unit subject to the same conditions and procedures that apply to the exercise of the power of eminent domain by a redevelopment commission under IC 36-7-14.
        (12) Appoint an executive director, appraisers, real estate experts, engineers, architects, surveyors, and attorneys.
        (13) Appoint clerks, guards, laborers, and other employees the authority considers advisable, except that those appointments must be made in accordance with the merit system of the unit if such a system exists.
        (14) Prescribe the duties and regulate the compensation of employees of the authority.
        (15) Provide a pension and retirement system for employees of the authority by using the public employees' retirement fund or a retirement plan approved by the United States Department of Housing and Urban Development.
        (16) Discharge and appoint successors to employees of the authority subject to subdivision (13).
        (17) Rent offices for use of the department or authority, or accept the use of offices furnished by the unit.
        (18) Equip the offices of the authority with the necessary furniture, furnishings, equipment, records, and supplies.
        (19) Design, order, contract for, and construct, reconstruct, improve, or renovate the following:


            (A) Any local public improvement or structure that is necessary for redevelopment purposes or economic development within the corporate boundaries of the unit.
            (B) Any structure that enhances development or economic development.
        (20) Contract for the construction, extension, or improvement of pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
        (21) Accept loans, grants, and other forms of financial assistance from, or contract with, the federal government, the state government, a municipal corporation, a special taxing district, a foundation, or any other source.
        (22) Make and enter into all contracts and agreements necessary or incidental to the performance of the duties of the authority and the execution of the powers of the authority under this chapter.
        (23) Take any action necessary to implement the purpose of the authority.
        (24) Provide financial assistance, in the manner that best serves the purposes set forth in section 11(b) of this chapter, including grants and loans, to enable private enterprise to develop, redevelop, and reuse military base property or otherwise enable private enterprise to provide social and economic benefits to the citizens of the unit.
    (d) An authority may designate all or a portion of an economic development area created under this section as an allocation area by following the procedures set forth in IC 36-7-14-39 for the establishment of an allocation area by a redevelopment commission. The allocation provision may modify the definition of "property taxes" under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the depreciable personal property located and taxable on the site of operations of designated taxpayers in accordance with the procedures applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3 applies to such a modification. An allocation area established by an authority under this section is a special taxing district authorized by the general assembly to enable the unit to provide special benefits to taxpayers in the allocation area by promoting economic development that is of public use and benefit. For allocation areas established for an economic development area created under this section after June 30, 1997, and to the expanded portion of an allocation area for an economic development area that was established before June 30, 1997, and that is expanded under this section after June 30, 1997, the net assessed value of property that is assessed as residential property under the rules of the state board of tax commissioners, department of local government finance, as finally determined for any assessment date,

must be allocated. All of the provisions of IC 36-7-14-39, IC 36-7-14-39.1, and IC 36-7-14-39.5 apply to an allocation area created under this section, except that the authority shall be vested with the rights and duties of a commission as referenced in those sections, and except that, notwithstanding IC 36-7-14-39(b)(2), property tax proceeds paid into the allocation fund may be used by the authority only to do one (1) or more of the following:
        (1) Pay the principal of and interest and redemption premium on any obligations incurred by the special taxing district or any other entity for the purpose of financing or refinancing military base reuse activities in or serving or benefitting that allocation area.
        (2) Establish, augment, or restore the debt service reserve for obligations payable solely or in part from allocated tax proceeds in that allocation area or from other revenues of the authority (including lease rental revenues).
        (3) Make payments on leases payable solely or in part from allocated tax proceeds in that allocation area.
        (4) Reimburse any other governmental body for expenditures made by it for local public improvements or structures in or serving or benefitting that allocation area.
        (5) Pay all or a portion of a property tax replacement credit to taxpayers in an allocation area as determined by the authority. This credit equals the amount determined under the following STEPS for each taxpayer in a taxing district (as defined in IC 6-1.1-1-20) that contains all or part of the allocation area:
            STEP ONE: Determine that part of the sum of the amounts under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2), IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
            STEP TWO: Divide:
                (A) that part of the twenty percent (20%) of each county's total county tax levy payable that year as determined under IC 6-1.1-21-4 that is attributable to the taxing district; by
                (B) the STEP ONE sum.
            STEP THREE: Multiply:
                (A) the STEP TWO quotient; by
                (B) the total amount of the taxpayer's property taxes levied in the taxing district that have been allocated during that year to an allocation fund under this section.
        If not all the taxpayers in an allocation area receive the credit in full, each taxpayer in the allocation area is entitled to receive the same proportion of the credit. A taxpayer may not receive a credit

under this section and a credit under IC 36-7-14-39.5 in the same year.
        (6) (5) Pay expenses incurred by the authority for local public improvements or structures that are in the allocation area or serving or benefiting the allocation area.
        (7) (6) Reimburse public and private entities for expenses incurred in training employees of industrial facilities that are located:
            (A) in the allocation area; and
            (B) on a parcel of real property that has been classified as industrial property under the rules of the state board of tax commissioners. department of local government finance.
        However, the total amount of money spent for this purpose in any year may not exceed the total amount of money in the allocation fund that is attributable to property taxes paid by the industrial facilities described in clause (B). The reimbursements under this subdivision must be made within three (3) years after the date on which the investments that are the basis for the increment financing are made. The allocation fund may not be used for operating expenses of the authority.
    (e) In addition to other methods of raising money for property acquisition, redevelopment, or economic development activities in or directly serving or benefitting an economic development area created by an authority under this section, and in anticipation of the taxes allocated under subsection (d), other revenues of the authority, or any combination of these sources, the authority may, by resolution, issue the bonds of the special taxing district in the name of the unit. Bonds issued under this section may be issued in any amount without limitation. The following apply if such a resolution is adopted:
        (1) The authority shall certify a copy of the resolution authorizing the bonds to the municipal or county fiscal officer, who shall then prepare the bonds. The seal of the unit must be impressed on the bonds, or a facsimile of the seal must be printed on the bonds.
        (2) The bonds must be executed by the appropriate officer of the unit and attested by the unit's fiscal officer.
        (3) The bonds are exempt from taxation for all purposes.
        (4) Bonds issued under this section may be sold at public sale in accordance with IC 5-1-11 or at a negotiated sale.
        (5) The bonds are not a corporate obligation of the unit but are an indebtedness of the taxing district. The bonds and interest are payable, as set forth in the bond resolution of the authority:
            (A) from the tax proceeds allocated under subsection (d);
            (B) from other revenues available to the authority; or


            (C) from a combination of the methods stated in clauses (A) and (B).
        (6) Proceeds from the sale of bonds may be used to pay the cost of interest on the bonds for a period not to exceed five (5) years from the date of issuance.
        (7) Laws relating to the filing of petitions requesting the issuance of bonds and the right of taxpayers to remonstrate against the issuance of bonds do not apply to bonds issued under this section.
        (8) If a debt service reserve is created from the proceeds of bonds, the debt service reserve may be used to pay principal and interest on the bonds as provided in the bond resolution.
        (9) If bonds are issued under this chapter that are payable solely or in part from revenues to the authority from a project or projects, the authority may adopt a resolution or trust indenture or enter into covenants as is customary in the issuance of revenue bonds. The resolution or trust indenture may pledge or assign the revenues from the project or projects. The resolution or trust indenture may also contain any provisions for protecting and enforcing the rights and remedies of the bond owners as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority. The authority may establish fees and charges for the use of any project and covenant with the owners of any bonds to set those fees and charges at a rate sufficient to protect the interest of the owners of the bonds. Any revenue bonds issued by the authority that are payable solely from revenues of the authority shall contain a statement to that effect in the form of bond.
    (f) Notwithstanding section 8(a) of this chapter, an ordinance adopted under section 11(b) of this chapter may provide, or be amended to provide, that the board of directors of the authority shall be composed of not fewer than three (3) nor more than seven (7) members, who must be residents of the unit appointed by the executive of the unit.
    (g) The acquisition of real and personal property by an authority under this section is not subject to the provisions of IC 5-22, IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the purchase of property by public bodies or their agencies.
    (h) An authority may negotiate for the sale, lease, or other disposition of real and personal property without complying with the provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other statute governing the disposition of public property.
    (i) Notwithstanding any other law, utility services provided within an economic development area established under this section are subject

to regulation by the appropriate regulatory agencies unless the utility service is provided by a utility that provides utility service solely within the geographic boundaries of an existing or a closed military installation, in which case the utility service is not subject to regulation for purposes of rate making, regulation, service delivery, or issuance of bonds or other forms of indebtedness. However, this exemption from regulation does not apply to utility service if the service is generated, treated, or produced outside the boundaries of the existing or closed military installation.

SOURCE: IC 36-7-15.1-25; (02)IN1003.1.363. -->     SECTION 363. IC 36-7-15.1-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 25. (a) Real property acquired by the redevelopment district is exempt from taxation while owned by the district.
    (b) All receipts of the department, including receipts from the sale of real property, personal property, and materials disposed of, are exempt from all taxes. including the gross income tax.
    (c) As used in this subsection, "year one" means any calendar year and "year two" means the calendar year following year one. When real property is acquired by the redevelopment district during the period from assessment on March 1 of year one to the last day of February of year two, the taxes due in year two shall be prorated between the seller and the city. When the proration is made, the auditor shall remove the city's prorated share from the tax duplicate by auditor's correction.
SOURCE: IC 36-7-15.1-35; (02)IN1003.1.364. -->     SECTION 364. IC 36-7-15.1-35 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 35. (a) Notwithstanding section 26(a) of this chapter, with respect to the allocation and distribution of property taxes for the accomplishment of a program adopted under section 32 of this chapter, "base assessed value" means the net assessed value of all of the land as finally determined for the assessment date immediately preceding the effective date of the allocation provision, as adjusted under section 26(g) of this chapter. However, "base assessed value" does not include the value of real property improvements to the land.
    (b) The special fund established under section 26(b) of this chapter for the allocation area for a program adopted under section 32 of this chapter may be used only for purposes related to the accomplishment of the program, including the following:
        (1) The construction, rehabilitation, or repair of residential units within the allocation area.
        (2) The construction, reconstruction, or repair of infrastructure (such as streets, sidewalks, and sewers) within or serving the allocation area.
        (3) The acquisition of real property and interests in real property within the allocation area.
        (4) The demolition of real property within the allocation area.
        (5) To provide financial assistance to enable individuals and families to purchase or lease residential units within the allocation area. However, financial assistance may be provided only to those individuals and families whose income is at or below the county's median income for individuals and families, respectively.
        (6) To provide financial assistance to neighborhood development corporations to permit them to provide financial assistance for the purposes described in subdivision (5).
        (7) To provide each taxpayer in the allocation area a credit for property tax replacement as determined under subsections (c) and (d). However, this credit may be provided by the commission only if the city-county legislative body establishes the credit by ordinance adopted in the year before the year in which the credit is provided.
    (c) The maximum credit that may be provided under subsection (b)(7) to a taxpayer in a taxing district that contains all or part of an allocation area established for a program adopted under section 32 of this chapter shall be determined as follows:
        STEP ONE: Determine that part of the sum of the amounts described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2) through IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
        STEP TWO: Divide:
            (A) that part of the amount determined under IC 6-1.1-21-4(a)(1) that is attributable to the taxing district; by
            (B) the amount determined under STEP ONE.
        STEP THREE: Multiply:
            (A) the STEP TWO quotient; by
            (B) the taxpayer's property taxes levied in the taxing district allocated to the allocation fund, including the amount that would have been allocated but for the credit.
    (d) The commission may determine to grant to taxpayers in an allocation area from its allocation fund a credit under this section, as calculated under subsection (c), by applying one-half (1/2) of the credit to each installment of property taxes that under IC 6-1.1-22-9 are due and payable on May 1 and November 1 of a year. The commission must provide for the cre