COMMITTEE REPORT

MR. PRESIDENT:

    The Senate Committee on Finance, to which was referred House Bill No. 1196, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

     SOURCE: Page 2, line 17; (02)CR119602.2. -->     Page 2, between lines 17 and 18, begin a new paragraph and insert:
SOURCE: IC 4-33-12-6; (02)CR119602.2. -->     "SECTION 2. IC 4-33-12-6, AS AMENDED BY P.L.215-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 6. (a) The department shall place in the state general fund the tax revenue collected under this chapter.
    (b) Except as provided by subsection subsections (c) and (d) and IC 6-3.1-20-7, the treasurer of state shall quarterly pay the following amounts:
        (1) One dollar ($1) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to:
            (A) the city in which the riverboat is docked, if the city:
                (i) is described in IC 4-33-6-1(a)(1) through IC 4-33-6-1(a)(4) or in IC 4-33-6-1(b); located in a county having a population of more than one hundred ten thousand (110,000) but less than one hundred fifteen thousand (115,000); or
                (ii) is contiguous to the Ohio River and is the largest city in the county; and


            (B) the county in which the riverboat is docked, if the riverboat is not docked in a city described in clause (A).
        (2) One dollar ($1) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the county in which the riverboat is docked. In the case of a county described in subdivision (1)(B), this one dollar ($1) is in addition to the one dollar ($1) received under subdivision (1)(B).
        (3) Ten cents ($0.10) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the county convention and visitors bureau or promotion fund for the county in which the riverboat is docked.
        (4) Fifteen cents ($0.15) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during a quarter shall be paid to the state fair commission, for use in any activity that the commission is authorized to carry out under IC 15-1.5-3.
        (5) Ten cents ($0.10) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the division of mental health and addiction. The division shall allocate at least twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and treatment of compulsive gambling.
        (6) Sixty-five cents ($0.65) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the Indiana horse racing commission to be distributed as follows, in amounts determined by the Indiana horse racing commission, for the promotion and operation of horse racing in Indiana:
            (A) To one (1) or more breed development funds established by the Indiana horse racing commission under IC 4-31-11-10.
            (B) To a racetrack that was approved by the Indiana horse racing commission under IC 4-31. The commission may make a grant under this clause only for purses, promotions, and routine operations of the racetrack. No grants shall be made for long term capital investment or construction and no grants shall be made before the racetrack becomes operational and is offering a racing schedule.
    (c) With respect to tax revenue collected from a riverboat that operates on Patoka Lake, the treasurer of state shall quarterly pay the following amounts:
        (1) The counties described in IC 4-33-1-1(3) shall receive one dollar ($1) of the admissions tax collected for each person embarking on the riverboat during the quarter. This amount shall be divided equally among the counties described in IC 4-33-1-1(3).
        (2) The Patoka Lake development account established under IC 4-33-15 shall receive one dollar ($1) of the admissions tax collected for each person embarking on the riverboat during the quarter.
        (3) The resource conservation and development program that:
            (A) is established under 16 U.S.C. 3451 et seq.; and
            (B) serves the Patoka Lake area;
        shall receive forty cents ($0.40) of the admissions tax collected for each person embarking on the riverboat during the quarter.
        (4) The state general fund shall receive fifty cents ($0.50) of the admissions tax collected for each person embarking on the riverboat during the quarter.
        (5) The division of mental health and addiction shall receive ten cents ($0.10) of the admissions tax collected for each person embarking on the riverboat during the quarter. The division shall allocate at least twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and treatment of compulsive gambling.
     (d) With respect to tax revenue collected from a riverboat that operates from a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000), the treasurer of state shall quarterly pay the following amounts:
        (1) One dollar ($1) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the city in which the riverboat is docked.
        (2) One dollar ($1) of the admissions tax collected by the

licensed owner for each person embarking on a riverboat during the quarter shall be paid to the county in which the riverboat is docked.
         (3) Eight cents ($0.08) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the county convention and visitors bureau or promotion fund for the county in which the riverboat is docked.
        (4) Two cents ($0.02) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the
northwest Indiana law enforcement training center.
        (5) Fifteen cents ($0.15) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during a quarter shall be paid to the state fair commission for use in any activity that the commission is authorized to carry out under IC 15-1.5-3.
        (6) Ten cents ($0.10) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the division of mental health and addiction. The division shall allocate at least twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and treatment of compulsive gambling.
        (7) Sixty-five cents ($0.65) of the admissions tax collected by the licensed owner for each person embarking on a riverboat during the quarter shall be paid to the Indiana horse racing commission to be distributed as follows, in amounts determined by the Indiana horse racing commission, for the promotion and operation of horse racing in Indiana:
            (A) To one (1) or more breed development funds established by the Indiana horse racing commission under IC 4-31-11-10.
            (B) To a racetrack that was approved by the Indiana horse racing commission under IC 4-31. The commission may make a grant under this clause only for purses, promotions, and routine operations of the racetrack. No grants shall be made for long term capital investment or

construction, and no grants shall be made before the racetrack becomes operational and is offering a racing schedule.
    (d) (e) Money paid to a unit of local government under subsection (b)(1) through (b)(2), or subsection (c)(1), or subsection (d)(1) through (d)(2):
        (1) must be paid to the fiscal officer of the unit and may be deposited in the unit's general fund or riverboat fund established under IC 36-1-8-9, or both;
        (2) may not be used to reduce the unit's maximum levy under IC 6-1.1-18.5, but may be used at the discretion of the unit to reduce the property tax levy of the unit for a particular year;
        (3) may be used for any legal or corporate purpose of the unit, including the pledge of money to bonds, leases, or other obligations under IC 5-1-14-4; and
        (4) is considered miscellaneous revenue.
    (e) (f) Money paid by the treasurer of state under subsection subsections (b)(3) or (d)(3) shall be:
        (1) deposited in:
            (A) the county convention and visitor promotion fund; or
            (B) the county's general fund if the county does not have a convention and visitor promotion fund; and
        (2) used only for the tourism promotion, advertising, and economic development activities of the county and community.
    (f) (g) Money received by the division of mental health and addiction under subsections (b)(5), and (c)(5), and (d)(6):
        (1) is annually appropriated to the division of mental health and addiction;
        (2) shall be distributed to the division of mental health and addiction at times during each state fiscal year determined by the budget agency; and
        (3) shall be used by the division of mental health and addiction for programs and facilities for the prevention and treatment of addictions to drugs, alcohol, and compulsive gambling, including the creation and maintenance of a toll free telephone line to provide the public with information about these addictions. The division shall allocate at least twenty-five percent (25%) of the money received to the prevention and treatment of compulsive

gambling.
SOURCE: IC 4-33-13-5; (02)CR119602.3. -->     SECTION 3. IC 4-33-13-5, AS AMENDED BY P.L.273-1999, SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 5. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue deposited in the state gaming fund under this chapter to the following:
        (1) Twenty-five percent (25%) of the tax revenue remitted by each licensed owner shall be paid:
            (A) to the city that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of:
                 (i) a city described in IC 4-33-12-6(b)(1)(A); or
                (ii) a city located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000);

            (B) in equal shares to the counties described in IC 4-33-1-1(3), in the case of a riverboat whose home dock is on Patoka Lake; or
            (C) to the county that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of a riverboat whose home dock is not in a city described in clause (A) or a county described in clause (B); and
        (2) Seventy-five percent (75%) of the tax revenue remitted by each licensed owner shall be paid to the build Indiana fund lottery and gaming surplus account.".
SOURCE: Page 2, line 17; (02)CR119602.2. -->     Page 2, between lines 17 and 18, begin a new paragraph and insert:
SOURCE: IC 6-1.1-3-8.5; (02)CR119602.2. -->     "SECTION 2. IC 6-1.1-3-8.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 8.5. (a) For purposes of this section, "construction in process" means tangible personal property not placed in service, as defined in rules of the department of local government finance for the assessment of personal property of a taxpayer other than a public utility company (as defined in IC 6-1.1-8-2).
    (b)
The assessed value of construction in process is ten percent (10%) of the cost recorded on the taxpayer's books and records that is attributable to the personal property, including all expenses

incurred in acquiring or producing the personal property.".
SOURCE: Page 4, line 38; (02)CR119602.4. -->     Page 4, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: IC 6-1.1-4-28.5; (02)CR119602.6. -->     "SECTION 6. IC 6-1.1-4-28.5, AS ADDED BY P.L.198-2001, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 28.5. (a) Money assigned to a property reassessment fund under section 27.5 of this chapter may be used only to pay the costs of:
        (1) the general reassessment of real property, including the computerization of assessment records;
        (2) payments to county assessors, members of property tax assessment boards of appeals, or assessing officials under IC 6-1.1-35.2;
        (3) the development or updating of detailed soil survey data by the United States Department of Agriculture or its successor agency;
        (4) the updating of plat books; and
        (5) payments for the salary of permanent staff or for the contractual services of temporary staff who are necessary to assist county assessors, members of a county property tax assessment board of appeals, and assessing officials.
    (b) All counties shall use modern, detailed soil maps in the general reassessment of agricultural land.
    (c) The county treasurer of each county shall, in accordance with IC 5-13-9, invest any money accumulated in the property reassessment fund until the money is needed to pay general reassessment expenses. Any interest received from investment of the money shall be paid into the property reassessment fund.
    (d) An appropriation under this section must be approved by the fiscal body of the county after the review and recommendation of the county assessor. However, in a county with an elected township assessor under IC 36-6-5-1 in every township, the county assessor does not review an appropriation under this section, and only the fiscal body must approve an appropriation under this section after review and majority recommendation of the township assessors in the county.".
     SOURCE: Page 14, line 14; (02)CR119602.14. -->     Page 14, line 14, delete "township assessor" and insert " county auditor".
    Page 14, line 16, delete "only if the county auditor and" and insert

" unless".
    Page 14, line 17, delete "agree to transfer" and insert " determines to assume".
    Page 14, line 17, delete "auditor to the" and insert " auditor.".
    Page 14, delete line 18.
    Page 14, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: IC 6-1.1-5.5-4.5; (02)CR119602.10. -->     "SECTION 10. IC 6-1.1-5.5-4.5, AS ADDED BY P.L.198-2001, SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4.5. (a) The fiscal body of each county shall establish a sales disclosure fund. The county auditor shall deposit into the fund the money received under section 4 of this chapter. Money in the sales disclosure fund may be expended only for:
        (1) administration of this chapter;
        (2) verification of the information contained on a sales disclosure form;
        (3) training of assessing officials; or
        (4) purchasing computer software or hardware for a property record system.
    (b) Except as provided in subsection (c), the county fiscal body shall appropriate the money in the sales disclosure fund for the purposes stated in subsection (a) based on requests by assessing officials in the county.
     (c) In a county containing a consolidated city, the county fiscal body shall appropriate the money in the sales disclosure fund for the purposes stated in subsection (a) based on a majority recommendation of the township assessors in the county.".
SOURCE: Page 15, line 28; (02)CR119602.15. -->     Page 15, line 28, delete "county assessor" and insert " township assessor in a county containing a consolidated city, or the county assessor in any other county,".
    Page 15, line 30, after "conveyance;" insert " and".
    Page 15, line 33, delete "assessment;" and insert " assessment.".
    Page 15, between lines 33 and 34, begin a new paragraph and insert:
    " (d) The county auditor shall:".
    Page 15, line 34, delete "(4)" and insert " (1)".
    Page 15, line 34, delete "penalty;" and insert " penalty imposed under this section;".
    Page 15, line 35, delete "(5)" and insert " (2)".
    Page 15, line 37, delete "(6)" and insert " (3)".


    Page 15, line 39, delete "(d)" and insert " (e)".
    Page 15, after line 42, begin a new paragraph and insert:
SOURCE: IC 6-1.1-8-4.5; (02)CR119602.12. -->     "SECTION 12. IC 6-1.1-8-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 4.5. (a) For purposes of this section, "construction in process" means tangible personal property not placed in service, as defined in rules of the department of local government finance for the assessment of personal property of a public utility company.
    (b)
The assessed value of construction in process is ten percent (10%) of the cost recorded on the public utility company's books and records that is attributable to the personal property, including all expenses incurred in acquiring or producing the personal property.".
SOURCE: Page 17, line 33; (02)CR119602.17. -->     Page 17, between lines 33 and 34, begin a new paragraph and insert:
SOURCE: IC 6-1.1-12.1-4.5; (02)CR119602.14. -->     "SECTION 14. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.4-2000, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE MARCH 1, 2002 (RETROACTIVE)]: Sec. 4.5. (a) For purposes of this section, "personal property" means personal property other than inventory (as defined in IC 6-1.1-3-11(a)).
    (b) An applicant must provide a statement of benefits to the designating body. The applicant must provide the completed statement of benefits form to the designating body before the hearing specified in section 2.5(c) of this chapter or before the installation of the new manufacturing equipment or new research and development equipment, or both, for which the person desires to claim a deduction under this chapter. The state board of tax commissioners shall prescribe a form for the statement of benefits. The statement of benefits must include the following information:
        (1) A description of the new manufacturing equipment or new research and development equipment, or both, that the person proposes to acquire.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment;
        an estimate of the number of individuals who will be employed or

whose employment will be retained by the person as a result of the installation of the new manufacturing equipment or new research and development equipment, or both, and an estimate of the annual salaries of these individuals.
        (3) An estimate of the cost of the new manufacturing equipment or new research and development equipment, or both.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, an estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products by the new manufacturing equipment.
With the approval of the state board of tax commissioners, the statement of benefits may be incorporated in a designation application. Notwithstanding any other law, a statement of benefits is a public record that may be inspected and copied under IC 5-14-3-3.
    (c) The designating body must review the statement of benefits required under subsection (b). The designating body shall determine whether an area should be designated an economic revitalization area or whether the deduction shall be allowed, based on (and after it has made) the following findings:
        (1) Whether the estimate of the cost of the new manufacturing equipment or new research and development equipment, or both, is reasonable for equipment of that type.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment;
        whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the installation of the new manufacturing equipment or new research and development equipment, or both.
        (3) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed installation of new manufacturing equipment or new research and

development equipment, or both.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, whether the estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products can be reasonably expected to result from the installation of the new manufacturing equipment.
        (5) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed installation of new manufacturing equipment or new research and development equipment, or both.
        (6) Whether the totality of benefits is sufficient to justify the deduction.
The designating body may not designate an area an economic revitalization area or approve the deduction unless it makes the findings required by this subsection in the affirmative.
    (d) Except as provided in subsection (f), an owner of new manufacturing equipment whose statement of benefits is approved before May 1, 1991, is entitled to a deduction from the assessed value of that equipment for a period of five (5) years. Except as provided in subsections (f) and (i), subsection (h), an owner of new manufacturing equipment or new research and development equipment, or both, whose statement of benefits is approved after June 30, 2000, is entitled to a deduction from the assessed value of that equipment for the number of years determined by the designating body under subsection (h). (g). Except as provided in subsections subsection (f), and (g), and in section 2(i)(3) of this chapter, the amount of the deduction that an owner is entitled to for a particular year equals the product of:
        (1) the assessed value of the new manufacturing equipment or new research and development equipment, or both, in the year that the equipment is installed; of deduction under the table set forth in subsection (e); multiplied by
        (2) the percentage prescribed in the table set forth in subsection (e).
    (e) The percentage to be used in calculating the deduction under subsection (d) is as follows:
        (1) For deductions allowed over a one (1) year period:


                YEAR OF DEDUCTION        PERCENTAGE
    1st    100%
    2nd and thereafter    0%
    (2) For deductions allowed over a two (2) year period:
        YEAR OF DEDUCTION        PERCENTAGE
    1st    100%
    2nd    50%
    3rd and thereafter    0%
    (3) For deductions allowed over a three (3) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    66%
    3rd    33%
    4th and thereafter    0%
    (4) For deductions allowed over a four (4) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    75%
    3rd    50%
    4th    25%
    5th and thereafter    0%
    (5) For deductions allowed over a five (5) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    80%
    3rd    60%
    4th    40%
    5th    20%
    6th and thereafter    0%
    (6) For deductions allowed over a six (6) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    85%
    3rd    66%
    4th    50%
    5th    34%
    6th    25%
    7th and thereafter    0%
    (7) For deductions allowed over a seven (7) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    85%
    3rd    71%
    4th    57%
    5th    43%
    6th    29%
    7th    14%
    8th and thereafter    0%
    (8) For deductions allowed over an eight (8) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    88%
    3rd    75%
    4th    63%
    5th    50%
    6th    38%
    7th    25%
    8th    13%
    9th and thereafter    0%
    (9) For deductions allowed over a nine (9) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    88%
    3rd    77%
    4th    66%
    5th    55%
    6th    44%
    7th    33%
    8th    22%
    9th    11%
    10th and thereafter    0%
    (10) For deductions allowed over a ten (10) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    90%
    3rd    80%
    4th    70%
    5th    60%
    6th    50%
    7th    40%
    8th    30%
    9th    20%
    10th    10%
    11th and thereafter    0%
    (f) With respect to new manufacturing equipment and new research and development equipment installed before March 2, 2001, the deduction under this section is the amount that causes the net assessed value of the property after the application of the deduction under this section to equal the net assessed value after the application of the deduction under this section that results from computing:
        (1) the deduction under this section as in effect on March 1, 2001; and
        (2) the assessed value of the property under 50 IAC 4.2, as in effect on March 1, 2001, or, in the case of property subject to IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.

Notwithstanding subsections (d) and (e), a deduction under this section is not allowed in the first year the deduction is claimed for new manufacturing equipment or new research and development equipment, or both, to the extent that it would cause the assessed value of all of the personal property of the owner in the taxing district in which the equipment is located (excluding personal property that is assessed as construction in process) to be less than the assessed value of all of the personal property of the owner in that taxing district (excluding personal property that is assessed as construction in process) in the immediately preceding year.
    (g) If a deduction is not fully allowed under subsection (f) in the first year the deduction is claimed, then the percentages specified in subsection (d) or (e) apply in the subsequent years to the amount of deduction that was allowed in the first year.
    (h) (g) For an economic revitalization area designated before July 1, 2000, the designating body shall determine whether a property owner whose statement of benefits is approved after April 30, 1991, is

entitled to a deduction for five (5) or ten (10) years. For an economic revitalization area designated after June 30, 2000, the designating body shall determine the number of years the deduction is allowed. However, the deduction may not be allowed for more than ten (10) years. This determination shall be made:
        (1) as part of the resolution adopted under section 2.5 of this chapter; or
        (2) by resolution adopted within sixty (60) days after receiving a copy of a property owner's certified deduction application from the state board of tax commissioners. A certified copy of the resolution shall be sent to the county auditor and the state board of tax commissioners.
A determination about the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by following the procedure under subdivision (2).
    (i) (h) The owner of new manufacturing equipment that is directly used to dispose of hazardous waste is not entitled to the deduction provided by this section for a particular assessment year if during that assessment year the owner:
        (1) is convicted of a violation under IC 13-7-13-3 (repealed), IC 13-7-13-4 (repealed), or IC 13-30-6; or
        (2) is subject to an order or a consent decree with respect to property located in Indiana based on a violation of a federal or state rule, regulation, or statute governing the treatment, storage, or disposal of hazardous wastes that had a major or moderate potential for harm.".
SOURCE: Page 17, line 33; (02)CR119602.17. -->     Page 17, between lines 33 and 34, begin a new paragraph and insert:
SOURCE: IC 6-1.1-13-5; (02)CR119602.16. -->     "SECTION 16. IC 6-1.1-13-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. This section does not apply to a county that contains a consolidated city. A county assessor shall reduce or increase the assessed value of any tangible property in order to attain a just and equal basis of assessment between the taxpayers of the county.
SOURCE: IC 6-1.1-13-6; (02)CR119602.17. -->     SECTION 17. IC 6-1.1-13-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. This section

does not apply to a county that contains a consolidated city. A county assessor shall inquire into the assessment of the classes of tangible property in the various townships of the county before July 1 in the year in which the general reassessment is to commence. The county assessor shall make any changes, whether increases or decreases, in the assessed values which are necessary in order to equalize these values in and between the various townships of the county. In addition, the county assessor shall determine the percent to be added to or deducted from the assessed values in order to make a just, equitable, and uniform equalization of assessments in and between the townships of the county.".
     SOURCE: Page 19, line 17; (02)CR119602.19. -->     Page 19, line 17, delete "If".
    Page 19, delete lines 18 through 22.
    Page 19, line 23, delete "assessment that would result from that agreement.".
    Page 19, line 29, delete "If the" and insert "The".
    Page 19, line 30, delete "disagrees with the assessment, the township".
    Page 19, line 31, delete "assessor or county assessor".
    Page 19, line 32, reset in roman "these".
    Page 19, line 32, after "these" delete "the".
    Page 19, line 32, delete "of disagreement".
    Page 23, line 26, after "assessor" delete "." and insert " or elected township assessor.".
    Page 23, between lines 28 and 29, begin a new paragraph and insert:
SOURCE: IC 6-1.1-15-16; (02)CR119602.19. -->     "SECTION 19. IC 6-1.1-15-16 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. Notwithstanding any provision in the 2002 Real Property Assessment Manual and Real Property Assessment Guidelines for 2002-Version A, incorporated by reference in 50 IAC 2.3-1-2, a county property tax assessment board of appeals or the Indiana board shall consider all evidence relevant to the assessment of real property regardless of whether the evidence was submitted to the township assessor before the assessment of the property.".
SOURCE: Page 26, line 9; (02)CR119602.26. -->     Page 26, between lines 9 and 10, begin a new paragraph and insert:


SOURCE: IC 6-1.1-18-9; (02)CR119602.23. -->     "SECTION 23. IC 6-1.1-18-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. Notwithstanding the other provisions of this chapter, the proper officer or officers of a political subdivision may:
    (1) make an appropriation with respect to a contract for the discovery of omitted property if the contract provides the payment for the services performed is to be made from taxes or penalties collected on the discovered property;
    (2) (1) reappropriate money recovered from erroneous or excessive disbursements if the error and recovery are made within the current budget year; or
    (3) (2) refund, without appropriation, money erroneously received.".
SOURCE: Page 39, line 18; (02)CR119602.39. -->     Page 39, between lines 18 and 19, begin a new paragraph and insert:
    " (f) Notwithstanding any other provision of law:
        (1) a person who:
            (A) is an officer or employee of an entity that contracts with a board of county commissioners under IC 6-1.1-36-12; and
            (B) obtains confidential information under this section;
        may not disclose that confidential information to any other person; and
        (2) a person referred to in subdivision (1) must return all confidential information to the taxpayer not later than fourteen (14) days after the earlier of:
            (A) the completion of the examination of the taxpayer's personal property return under IC 6-1.1-36-12; or
            (B) the termination of the contract.

SOURCE: IC 6-1.1-35-11; (02)CR119602.35. -->     SECTION 35. IC 6-1.1-35-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. (a) An assessing official, member of a county property tax assessment board of appeals, a state board member, or an employee of any assessing official, county assessor, or board shall immediately be dismissed from that position if he the person discloses in an unauthorized manner any information

which that is classified as confidential under section 9 of this chapter.
     (b) If an officer or employee of an entity that contracts with a board of county commissioners under IC 6-1.1-36-12 discloses in an unauthorized manner any information that is classified as confidential under section 9 of this chapter:
        (1) the contract between the entity and the board is void as of the date of the disclosure;
        (2) the entity forfeits all right to payments owed under the contract after the date of disclosure;
        (3) the entity and its affiliates are barred for three (3) years after the date of disclosure from entering into a contract with a board under IC 6-1.1-36-12; and
        (4) the taxpayer whose information was disclosed has a right of action for triple damages against the entity.
".
SOURCE: Page 39, line 21; (02)CR119602.39. -->     Page 39, line 21, after "commissioners" insert ",".
    Page 39, line 21, after "enters" insert " county assessor, or elected township assessor".
    Page 39, line 35, delete "commissioners" and insert " commissioners, county assessor, or elected township assessor".
    Page 39, between lines 36 and 37, begin a new paragraph and insert:
SOURCE: IC 6-1.5-5-1; (02)CR119602.37. -->     "SECTION 37. IC 6-1.5-5-1, AS ADDED BY P.L.198-2001, SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) The Indiana board shall conduct impartial review of all appeals of final determinations of the department of local government finance made under the following:
        (1) IC 6-1.1-8.
        (2) IC 6-1.1-12.1.
        (3) IC 6-1.1-14.
        (4) IC 6-1.1-16.
        (5) IC 6-1.1-26-2.
    (b) Each notice of final determination issued by the department of local government finance under a statute listed in subsection (a) must give the taxpayer notice of:
        (1) the opportunity for review under this section; and
        (2) the procedures the taxpayer must follow in order

to obtain review under this section.
    (c) Except as provided in subsections (e) and (f), in order to obtain a review by the Indiana board under this section, the taxpayer must file a petition for review with the appropriate county assessor within forty-five (45) days after the notice of the department of local government finance's action is given to the taxpayer.
    (d) The county assessor shall transmit the a petition for review under subsection (c) to the Indiana board within ten (10) days after it is filed.
     (e) In order to obtain a review by the Indiana board of an appeal of a final determination of the department of local government finance under IC 6-1.1-8-30, the public utility company must follow the procedures in IC 6-1.1-8-30.
    (f) In order to obtain a review by the Indiana board of an appeal of a final determination of the department of local government finance under IC 6-1.1-12.1-5.7(h), the person must follow the procedures in IC 6-1.1-12.1-5.7(h).
".
SOURCE: Page 39, line 36; (02)CR119602.39. -->     Page 39, between lines 36 and 37, begin a new paragraph and insert:
SOURCE: IC 6-3.1-13-2; (02)CR119602.33. -->     "SECTION 33. IC 6-3.1-13-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. As used in this chapter, "credit amount" means the amount agreed to between the board and applicant under this chapter, but not to exceed, in the case of a credit awarded for a project to create new jobs in Indiana, the incremental income tax withholdings attributable to the applicant's project.
SOURCE: IC 6-3.1-13-13; (02)CR119602.34. -->     SECTION 34. IC 6-3.1-13-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. (a) The board may make credit awards under this chapter to foster job creation in Indiana or, as provided in section 15.5 of this chapter, job retention in Indiana.
    (b) The credit shall be claimed for the taxable years specified in the taxpayer's tax credit agreement.
SOURCE: IC 6-3.1-13-14; (02)CR119602.35. -->     SECTION 35. IC 6-3.1-13-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. A person that proposes a project to create new jobs in Indiana may apply, as provided in section 15 of this chapter, to the board to enter into an agreement for a tax credit under this chapter. A person that proposes

to retain existing jobs in Indiana may apply, as provided in section 15.5 of this chapter, to the board to enter into an agreement for a tax credit under this chapter. The director shall prescribe the form of the application.
SOURCE: IC 6-3.1-13-15; (02)CR119602.36. -->     SECTION 36. IC 6-3.1-13-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. This section applies to an application proposing a project to create new jobs in Indiana. After receipt of an application, the board may enter into an agreement with the applicant for a credit under this chapter if the board determines that all of the following conditions exist:
        (1) The applicant's project will create new jobs that were not jobs previously performed by employees of the applicant in Indiana.
        (2) The applicant's project is economically sound and will benefit the people of Indiana by increasing opportunities for employment in Indiana and strengthening the economy of Indiana.
        (3) There is at least one (1) other state that the applicant verifies is being considered for the project.
        (4) A significant disparity is identified, using best available data, in the projected costs for the applicant's project compared to the costs in the competing state, including the impact of the competing state's incentive programs. The competing state's incentive programs shall include state, local, private, and federal funds available.
        (5) (3) The political subdivisions affected by the project have committed significant local incentives with respect to the project.
        (6) (4) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project and not receiving the tax credit will result in the applicant not creating new jobs in Indiana.
        (7) (5) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
        (8) (6) The credit is not prohibited by section 16 of this chapter.


SOURCE: IC 6-3.1-13-15.5; (02)CR119602.37. -->     SECTION 37. IC 6-3.1-13-15.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15.5. This section applies to an application proposing to retain existing jobs in Indiana. After receipt of an application, the board may enter into an agreement with the applicant for a credit under this chapter if the board determines that all the following conditions exist:
         (1) The applicant's project will retain existing jobs performed by the employees of the applicant in Indiana.
         (2) The applicant provides evidence that there is at least one (1) other competing site outside Indiana that is being considered for the project or for the relocation of jobs.
         (3) A disparity is identified, using the best available data, in the projected costs for the applicant's project in Indiana compared with the costs for the project in the competing site.
         (4) The applicant is engaged in research and development, manufacturing, or business services (as defined in the Standard Industrial Classification Manual of the United States Office of Management and Budget).
        (5) The average compensation (including benefits) provided to the applicant's employees during the applicant's previous fiscal year is at least equal to the average compensation paid during that same period to all employees in the county in which the applicant's business is located.
        (6) The applicant employs at least one hundred (100) employees in Indiana.
        (7) The applicant has prepared a plan for the use of the credits under this chapter for:
            (A) investment in facility improvements or equipment and machinery upgrades, repairs, or retrofits; or
            (B) other direct business related investments, including but not limited to

training.
         (8) Receiving the tax credit is a major factor in the applicant's decision to go forward with the project, and not receiving the tax credit will increase the likelihood of the applicant reducing jobs in Indiana.
         (9) Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
         (10) The applicant's business and project are economically sound and will benefit the people of Indiana by increasing or maintaining opportunities for employment and strengthening the economy of Indiana.
         (11) The communities affected by the potential reduction in jobs or relocation of jobs to another site outside Indiana have committed at least one dollar ($1) of local incentives with respect to the retention of jobs for every three dollars ($3) in credits provided under this chapter. For purposes of this subdivision, local incentives include, but are not limited to, cash grants, tax abatements, infrastructure improvements, investment in facility rehabilitation, construction, and training investments.
         (12) The credit is not prohibited by section 16 of this chapter.
SOURCE: IC 6-3.1-13-17; (02)CR119602.38. -->     SECTION 38. IC 6-3.1-13-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17. In determining the credit amount that should be awarded to an applicant under section 15 of this chapter that proposes a project to create jobs in Indiana, the board shall take into consideration the following factors:
        (1) The economy of the county where the projected investment is to occur.
        (2) The potential impact on the economy of Indiana.
        (3) The magnitude of the cost differential between Indiana and the competing state.
        (4) (3) The incremental payroll attributable to the

project.
        (5) (4) The capital investment attributable to the project.
        (6) (5) The amount the average wage paid by the applicant exceeds the average wage paid within the county in which the project will be located.
        (7) (6) The costs to Indiana and the affected political subdivisions with respect to the project.
        (8) (7) The financial assistance that is otherwise provided by Indiana and the affected political subdivisions.
As appropriate, the board shall consider the factors in this section to determine the credit amount awarded to an applicant for a project to retain existing jobs in Indiana under section 15.5 of this chapter. In the case of an applicant under section 15.5 of this chapter, the board shall consider the magnitude of the cost differential between the projected costs for the applicant's project in the competing site outside Indiana and the projected costs for the applicant's project in Indiana.
SOURCE: IC 6-3.1-13-18; (02)CR119602.39. -->     SECTION 39. IC 6-3.1-13-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 18. The board shall determine the amount and duration of a tax credit awarded under this chapter. The duration of the credit may not exceed ten (10) taxable years. The credit may be stated as a percentage of the incremental income tax withholdings attributable to the applicant's project and may include a fixed dollar limitation. In the case of a credit awarded for a project to create new jobs in Indiana, the credit amount may not exceed the incremental income tax withholdings. However, the credit amount claimed for a taxable year may exceed the taxpayer's state tax liability for the taxable year, in which case the excess shall be refunded to the taxpayer.
SOURCE: IC 6-3.1-13-19; (02)CR119602.40. -->     SECTION 40. IC 6-3.1-13-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 19. In the case of a credit awarded for a project to create new jobs in Indiana, the board shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the project that is the

subject of the agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The credit amount that will be allowed for each taxable year.
        (4) A requirement that the taxpayer shall maintain operations at the project location for at least two (2) times the number of years as the term of the tax credit. A taxpayer is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) A specific method for determining the number of new employees employed during a taxable year who are performing jobs not previously performed by an employee.
        (6) A requirement that the taxpayer shall annually report to the board the number of new employees who are performing jobs not previously performed by an employee, the new income tax revenue withheld in connection with the new employees, and any other information the director needs to perform the director's duties under this chapter.
        (7) A requirement that the director is authorized to verify with the appropriate state agencies the amounts reported under subdivision (6), and after doing so shall issue a certificate to the taxpayer stating that the amounts have been verified.
        (8) A requirement that the taxpayer shall provide written notification to the director and the board not more than thirty (30) days after the taxpayer makes or receives a proposal that would transfer the taxpayer's state tax liability obligations to a successor taxpayer.
        (9) Any other performance conditions that the board determines are appropriate.
SOURCE: IC 6-3.1-13-19.5; (02)CR119602.41. -->     SECTION 41. IC 6-3.1-13-19.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 19.5. In the case of a credit awarded for a project to retain existing jobs in Indiana, the board

shall enter into an agreement with an applicant that is awarded a credit under this chapter. The agreement must include all of the following:
        (1) A detailed description of the business that is the subject of the agreement.
        (2) The duration of the tax credit and the first taxable year for which the credit may be claimed.
        (3) The credit amount that will be allowed for each taxable year.
        (4) A requirement that the applicant shall maintain operations at the project location for at least two (2) times the number of years as the term of the tax credit. An applicant is subject to an assessment under section 22 of this chapter for noncompliance with the requirement described in this subdivision.
        (5) A requirement that the applicant shall annually report the following to the board:
            (A) The number of employees who are employed in Indiana by the applicant.
            (B) The compensation (including benefits) paid to the applicant's employees in Indiana.
            (C) The amount of the:

                 (i) facility improvements;
                 (ii) equipment and machinery upgrades, repairs, or retrofits; or
                (iii) other direct business related investments, including training.
        (6) A requirement that the applicant shall provide written notification to the director and the board not more than thirty (30) days after the applicant makes or receives a proposal that would transfer the applicant's state tax liability obligations to a successor taxpayer.
        (7) Any other performance conditions that the board determines are appropriate.

SOURCE: IC 6-3.1-13-24; (02)CR119602.42. -->     SECTION 42. IC 6-3.1-13-24 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 24. On a biennial basis, the board shall provide for an evaluation of the tax credit program, giving first priority to using the Indiana economic development council, established under IC 4-3-14-4. The evaluation shall include an assessment of the effectiveness of the program in creating new jobs and retaining existing jobs in Indiana and of the revenue impact of the program, and may include a review of the practices and experiences of other states with similar programs. The director shall submit a report on the evaluation to the governor, the president pro tempore of the senate, and the speaker of the house of representatives after June 30 and before November 1 in each odd-numbered year.
SOURCE: IC 6-3.1-20-7; (02)CR119602.33. -->     SECTION 33. IC 6-3.1-20-7, AS ADDED BY P.L.151-2001, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. (a) The department shall before July 1 of each year determine the amount of credits allowed under this chapter for taxable years ending before January 1 of the year.
    (b) One-half (½) of the amount determined by the department under subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions tax revenue otherwise payable to the county under IC 4-33-12-6(b)(2); IC 4-33-12-6(d)(2); and
        (2) paid instead to the state general fund.
    (c) One-sixth (1/6) of the amount determined by the department under subsection (a) shall be:
        (1) deducted during the year from the riverboat admissions tax revenue otherwise payable under IC 4-33-12-6(b)(1) IC 4-33-12-6(d)(1) to each of the following:
            (A) The largest city by population located in the county.
            (B) The second largest city by population located in the county.
            (C) The third largest city by population located in the county; and
        (2) paid instead to the state general fund.".
     SOURCE: Page 40, line 42; (02)CR119602.40. -->     Page 40, line 42, after "to" insert " :


         (1)".
    Page 41, line 2, delete "." and insert " ; and
         (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900).".
    Page 60, line 18, after "For" insert " :
         (1)".
    Page 60, line 20, delete "(200,000)," and insert " (200,000); or
        (2) a county having a population of more than forty-five thousand (45,000) but less than forty-five thousand nine hundred (45,900);
".
    Page 60, line 20, beginning with "the" begin a new line blocked left.
    Page 62, between lines 25 and 26, begin a new paragraph and insert:
SOURCE: IC 6-8.1-9-14; (02)CR119602.54. -->     "SECTION 54. IC 6-8.1-9-14 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 14. (a) The department shall establish, administer, and make available a centralized debt collection program for use by state agencies to collect delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to or being collected by state agencies. The department's collection facilities shall be available for use by other state agencies only when resources are available to the department.
    (b) The commissioner shall prescribe the appropriate form and manner in which collection information is to be submitted to the department.
    (c) The debt must be delinquent and not subject to litigation, claim, appeal, or review under the appropriate remedies of a state agency.
    (d) The department has the authority to collect for the state or claimant agency (as defined in IC 6-8.1-9.5-1) delinquent accounts, charges, fees, loans, taxes, or other indebtedness due the state or claimant agency that has a formal agreement with the department for central debt collection.
    (e) The formal agreement must provide that the information provided to the department be sufficient to establish the obligation in court and to render the agreement as a legal

judgment on behalf of the state. After transferring a file for collection to the department for collection, the claimant agency shall terminate all collection procedures and be available to provide assistance to the department. Upon receipt of a file for collection, the department shall comply with all applicable state and federal laws governing collection of the debt.
    (f) The department may use a claimant agency's statutory authority to collect the claimant agency's delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to the claimant agency.
    (g) The department's right to credit against taxes due may not be impaired by any right granted the department or other state agency under this section.
    (h) The department of state revenue may charge the claimant agency a fee not to exceed fifteen percent (15%) of any funds the department collects for a claimant agency. Notwithstanding any law concerning delinquent accounts, charges, fees, loans, taxes, or other indebtedness, the fifteen percent (15%) fee shall be added to the amount due to the state or claimant agency when the collection is made.
    (i) Fees collected under subsection (h) shall be retained by the department after the debt is collected for the claimant agency and are appropriated to the department for use by the department in administering this section.
    (j) The department shall transfer any funds collected from a debtor to the claimant agency within thirty (30) days after the end of the month in which the funds were collected.
    (k) When a claimant agency requests collection by the department, the claimant agency shall provide the department with:
        (1) the full name;
        (2) the Social Security number or federal identification number, or both;
        (3) the last known mailing address; and
        (4) additional information that the department may request;
concerning the debtor.
    (l) The department shall establish a minimum amount that

the department will attempt to collect for the claimant agency.

    (m) The commissioner shall report, not later than March 1 for the previous calendar year, to the governor, the budget director, and the legislative council concerning the implementation of the centralized debt collection program, the number of debts, the dollar amounts of debts collected, and an estimate of the future
costs and benefits that may be associated with the collection program.".
SOURCE: Page 67, line 31; (02)CR119602.67. -->     Page 67, between lines 31 and 32, begin a new paragraph and insert:
SOURCE: IC 12-7-2-128.5; (02)CR119602.61. -->     "SECTION 61. IC 12-7-2-128.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 128.5. "Medical institution", for purposes of IC 12-15-8.5, has the meaning set forth in IC 12-15-8.5-1.
SOURCE: IC 12-15-2-17; (02)CR119602.62. -->     SECTION 62. IC 12-15-2-17, AS AMENDED BY P.L.272-1999, SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 17. (a) Except as provided in subsection subsections (b) and (d), if an applicant for or a recipient of Medicaid:
        (1) establishes one (1) irrevocable trust that has a value of not more than ten thousand dollars ($10,000), exclusive of interest, and is established for the sole purpose of providing money for the burial of the applicant or recipient;
        (2) enters into an irrevocable prepaid funeral agreement having a value of not more than ten thousand dollars ($10,000); or
        (3) owns a life insurance policy with a face value of not more than ten thousand dollars ($10,000) and with respect to which provision is made to pay not more than ten thousand dollars ($10,000) toward the applicant's or recipient's funeral expenses;
the value of the trust, prepaid funeral agreement, or life insurance policy may not be considered as a resource in determining the applicant's or recipient's eligibility for Medicaid.
    (b) Subject to subsection (d), if an applicant for or a recipient of Medicaid establishes an irrevocable trust or escrow under

IC 30-2-13, the entire value of the trust or escrow may not be considered as a resource in determining the applicant's or recipient's eligibility for Medicaid.
    (c) If an applicant for or a recipient of Medicaid owns resources described in subsection (a) and the total value of those resources is more than ten thousand dollars ($10,000), the value of those resources that is more than ten thousand dollars ($10,000) may be considered as a resource in determining the applicant's or recipient's eligibility for Medicaid.
     (d) In order for a trust, an escrow, a life insurance policy, or a prepaid funeral agreement to be exempt as a resource in determining an applicant's or recipient's eligibility for Medicaid under this section, the applicant or recipient must designate the office or the applicant's or recipient's estate to receive any remaining amounts after delivery of all services and merchandise under the contract as reimbursement for Medicaid assistance provided to the applicant or recipient after age fifty-five (55). The office may receive funds under this subsection only to the extent permitted by 42 U.S.C. 1396p. The computation of remaining amounts shall be made as of the date of delivery of services and merchandise under the contract and must be the excess, if any, derived from:
        (1) growth in principal;
        (2) accumulation and reinvestment of dividends;
        (3) accumulation and reinvestment of interest; and
        (4) accumulation and reinvestment of distributions;
on the applicant's or recipient's trust, escrow, life insurance policy, or prepaid funeral agreement over and above the seller's current retail price of all services, merchandise, and cash advance items set forth in the applicant's or recipient's contract.

SOURCE: IC 12-15-8.5; (02)CR119602.63. -->     SECTION 63. IC 12-15-8.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]:
     Chapter 8.5. Liens on Real Property of Medicaid Recipients
    Sec. 1. As used in this chapter, "medical institution " means any of the following:


        (1) A hospital.
        (2) A nursing facility.
        (3) An intermediate care facility for the mentally retarded.
    Sec. 2. Subject to section 10 of this chapter, when the office, in accordance with 42 U.S.C. 1396p, determines that a Medicaid recipient who resides in a medical institution cannot reasonably be expected to be discharged from a medical institution and return home, the office may obtain a lien on the Medicaid recipient's real property for the cost of all Medicaid expenditures made on behalf of the recipient.
    Sec. 3. The office may not obtain a lien under this chapter if any of the following persons lawfully reside in the home of the Medicaid recipient who resides in the medical institution:
        (1) The Medicaid recipient's spouse.
        (2) The Medicaid recipient's child who is:
            (A) less than twenty-one (21) years of age; or
            (B) disabled as defined by the federal Supplemental Security Income program.

         (3) The Medicaid recipient's sibling who has an ownership interest in the home and who has lived in the home continuously beginning at least twelve (12) months before the recipient was admitted to the medical institution.
         (4) The Medicaid recipient's parent.
        (5) An individual, other than a paid caregiver, who:
            (A) was continuously residing in the recipient's home for a period of at least two (2) years immediately prior to the date of the recipient's admission to the nursing facility; and
            (B) establishes to the satisfaction of the office that the person provided care to the recipient enabling the recipient to reside in the recipient's home rather than in a medical institution.

     Sec. 4. Before obtaining a lien on a Medicaid recipient's real property under this chapter, the office shall notify in writing the Medicaid recipient or the Medicaid recipient's authorized representative, if applicable, of the following:
        (1) The office's determination that the Medicaid recipient cannot reasonably be expected to be discharged from the medical institution.
        (2) The office's intent to impose a lien on the Medicaid recipient's home.
        (3) The Medicaid recipient's right to a hearing under IC 12-15-28 upon the Medicaid recipient's request regarding whether the requirements for the imposition of a lien are satisfied. No lien shall be filed until the hearing process is completed if a hearing is requested.

     Sec. 5. (a) The office shall obtain a lien under this chapter by filing a notice of lien with the recorder of the county in which the real property subject to the lien is located. The notice shall be filed prior to the recipient's death and shall include the following:
        (1) The name and place of residence of the individual against whose property the lien is asserted.
        (2) A legal description of the real property subject to the lien.

     (b) Upon the office's request, the county auditor or assessor of a county shall furnish the office with the legal description of any property in the county registered to the recipient.
     (c) The office shall file one (1) copy of the notice of lien with the county office of family and children in the county in which the real property is located. The county office of family and children shall retain a copy of the notice with the county office's records.
    (d) The office shall provide one (1) copy of the notice of lien to the recipient or the Medicaid recipient's authorized representative, if applicable, whose real property is affected.

     Sec. 6. (a) Beginning on the date on which a notice of lien is recorded in the office of the county recorder under section 5 of this chapter, the notice of lien:
         (1) constitutes due notice of a lien against the

Medicaid recipient's real property for any amount then recoverable and any amount that becomes recoverable under this article; and
         (2) gives a specific lien in favor of the office.
     (b) The lien continues from the date of filing the lien until the lien is satisfied or released.
     Sec. 7. The office may bring proceedings in foreclosure on a lien arising under this chapter:
         (1) during the lifetime of the Medicaid recipient if the Medicaid recipient or a person acting on behalf of the Medicaid recipient sells the property; or
         (2) upon the death of the Medicaid recipient.
     Sec. 8. (a) The office may not enforce a lien under this chapter if the Medicaid recipient is survived by any of the following:
         (1) The recipient's spouse.
        (2) The recipient's child who is:
            (A) less than twenty-one (21) years of age; or
            (B) disabled as defined by the federal Supplemental Security Income program.
        (3) The recipient's parent.
    (b) The office may not enforce a lien under this chapter as long as any of the following individuals reside in the home:
        (1) The recipient's child of any age if the child:
            (A) resided in the home for at least twenty-four (24) months before the Medicaid recipient was admitted to the medical institution;
            (B) provided care to the Medicaid recipient that delayed the Medicaid recipient's admission to the medical institution; and
            (C) has resided in the home on a continuous basis since the date of the individual's admission to the medical institution.
        (2) The Medicaid recipient's sibling who has an

ownership interest in the home and who has lived in the home continuously beginning at least twelve (12) months before the Medicaid recipient was admitted to the medical institution.
    Sec. 9. (a) The office shall release a lien imposed under this chapter within ten (10) business days after the
county office of family and children receives notice that the Medicaid recipient:
        (1) was discharged from the medical institution; and
        (2) is living in the home.
    (b) The county recorder shall waive the filing fee for the filing of a release made under this section.

     (c) If the property subject to the lien is sold, the office shall release its lien at the closing, and the lien shall attach to the net proceeds of the sale.
    Sec. 10. (a) The office may not enforce a lien against property with a value equal to or less than seventy-five thousand dollars ($75,000.00). If the value of the property subject to the lien exceeds seventy-five thousand dollars ($75,000.00), the value of the property equal to or less than seventy-five thousand dollars ($75,000.00) is exempt from the lien.
    (b) This section expires January 1, 2008.
    Sec. 11. (a) As used in this section "financial institution" means a bank, a trust company, a corporate fiduciary, a savings association, a credit union, a savings bank, a bank of discount and deposit, or an industrial loan and investment company organized or reorganized under the laws of this state, another state (as defined in IC 28-2-17-19), or United States law. The term also includes a consumer finance institution licensed to make supervised or regulated loans under IC 24-4.5.
    (b) A lien obtained under this chapter is subordinate to the security interest of a financial institution that loans money for any of the following purposes:
        (1) The payment of taxes, insurance, maintenance, and repairs in order to preserve and maintain the property.
        (2) Operating capital for the operation of a farm, business, or income producing real property.


        (3) The payment of medical, dental, or optical expenses incurred by the recipient, the recipient's spouse, a dependent parent, or a child who is less than twenty-one (21) years of age or who is disabled under criteria established by the federal Supplemental Security Income program.
        (4) The reasonable costs and expenses for the support, maintenance, comfort, and education of the recipient's spouse, a dependent parent, or a child who is less than twenty-one (21) years
of age or who is disabled under criteria established by the federal Supplemental Security Income program.
SOURCE: IC 12-15-9-0.5; (02)CR119602.64. -->     SECTION 64. IC 12-15-9-0.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 0.5. As used in this chapter, "estate" includes:
         (1) all real and personal property and other assets included within an individual's probate estate; and
         (2) any other real and personal property and other assets in which the individual had legal title or an interest at the time of death to the extent of the individual's interest, including assets conveyed to a survivor, an heir, or an assign of the deceased individual through any of the following:
            (A) Joint tenancy.
            (B) Tenancy in common.
            (C) Survivorship.
            (D) Life estate.
            (E) Trust, except for a trust:
                (i) that meets the requirements of 42 U.S.C. 1396p(d)(4); or
                (ii) that is funded with assets of a person other than the individual or the individual's spouse.
            (F) Any other arrangement.

SOURCE: IC 12-15-9-0.6; (02)CR119602.65. -->     SECTION 65. IC 12-15-9-0.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 0.6. (a) This section applies only to assets that are not included within an individual's probate estate.
    (b) The office may enforce its claim only to the extent that the value of the property subject to the claim exceeds seventy-five thousand dollars ($75,000.00).
    (c) This section expires January 1, 2008.

SOURCE: IC 12-15-9-0.7; (02)CR119602.66. -->     SECTION 66. IC 12-15-9-0.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 0.7. (a) This section applies only to assets that are not included within an individual's probate estate.
    (b) As used in this section "nonprobate transferee" means a person receiving property described in section 0.5 of this chapter.
    (c) The liability of a nonprobate transferee for the office's claim under this chapter may not:
        (1) exceed the value of the nonprobate transfers received or controlled by the transferee; and
        (2) include the net contributions of the transferee.
    (d) Upon notice to a nonprobate transferee, the office may enforce its claim in a proceeding in Indiana in the county in which the:
        (1) transfer occurred;
        (2) transferee is located; or
        (3) probate action is pending.
    (e) Enforcement of a claim against assets that are not included within an individual's probate estate must be commenced not later than twelve (12) months after the decedent's death.

SOURCE: IC 12-15-9-0.8; (02)CR119602.67. -->     SECTION 67. IC 12-15-9-0.8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE MAY 1, 2002]: Sec. 0.8. Any nonprobate assets:
        (1) that the office determined were exempt or unavailable
assets; or
        (2) that were transferred out of the probate estate;
before May 1, 2002, may not be included in the definition of estate under this chapter.

SOURCE: IC 12-15-28-1; (02)CR119602.68. -->     SECTION 68. IC 12-15-28-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2003]: Sec. 1. An applicant for or a recipient of Medicaid may appeal to the office if one (1) of the following occurs:
        (1) An application or a request is not acted upon by the county office within a reasonable time after the

application or request is filed.
        (2) The application is denied.
        (3) The applicant or recipient is dissatisfied with the action of the county office.
         (4) The recipient is dissatisfied with a determination made by the office under IC 12-15-8.5.".
SOURCE: Page 72, line 29; (02)CR119602.72. -->     Page 72, between lines 29 and 30, begin a new paragraph and insert:
SOURCE: IC 33-3-5-2.5; (02)CR119602.69. -->     "SECTION 69. IC 33-3-5-2.5, AS ADDED BY P.L.151-2001, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.5. (a) As used in this section, "qualifying county" means a county having a population of more than four hundred thousand (400,000) and less than seven hundred thousand (700,000).
    (b) As used in this section, "contractor" means the a general reassessment, general reassessment review, or special reassessment contractor of the state board department of tax commissioners local government finance under IC 6-1.1-4-32.
    (c) As used in this section, "qualifying official" refers to any of the following:
        (1) A county assessor of a qualifying county.
        (2) A township assessor of a township located in a qualifying county.
        (3) The county auditor of a qualifying county.
        (4) The treasurer of a qualifying county.
        (5) The county surveyor of a qualifying county.
        (6) A member of the land valuation committee in a qualifying county.
        (7) Any other township or county official in a qualifying county who has possession or control of information necessary or useful for a general reassessment, general reassessment review, or special reassessment of property to which IC 6-1.1-4-32 applies, including information in the possession or control of an employee or a contractor of the official.
        (8) Any county official in a qualifying county who has control, review, or other responsibilities

related to paying claims of a contractor submitted for payment under IC 6-1.1-4-32.
     (d) Upon petition from (1) the state board department of tax commissioners; local government finance or (2) the a contractor, the tax court may order a township assessor in a qualifying county or a county assessor of a qualifying county qualifying official to:
         (1) produce information requested in writing from the township assessor or county assessor qualifying official by the state board department of tax commissioners local government finance or the contractor; or
        (2) pay a bill submitted to the qualifying county or a qualifying official in conformity with IC 6-1.1-4-32.

    (d) (e) If the tax court orders a township assessor or county assessor qualifying official to provide requested information or pay a bill as described in subsection (b), (d), the tax court shall order production of the information or payment of the bill not later than fourteen (14) days after the date of the tax court's order.
    (e) (f) The tax court may find that any willful violation of this section by a township assessor or county assessor qualifying official constitutes a direct contempt of the tax court.".
SOURCE: Page 73, line 28; (02)CR119602.73. -->     Page 73, line 28, delete "an executive (as".
    Page 73, delete line 29.
    Page 73, line 30, delete "township assessor under IC 36-6-5-2,".
    Page 74, line 3, delete "an executive (as defined in IC 36-1-2-5)".
    Page 74, delete line 4.
    Page 74, line 5, delete "under IC 36-6-5-2,".
    Page 75, line 26, after "assessor" insert " or elected township assessor".
    Page 82, line 37, delete "IC 6-1.1-4-13.6; IC 6-1.1-4-13.8;".
    Page 76, between lines 26 and 27, begin a new paragraph and insert:
SOURCE: IC 36-7-13-2.4; (02)CR119602.71. -->     "SECTION 71. IC 36-7-13-2.4, AS AMENDED BY P.L.174-2001, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.4. Except as provided in

section 10.7(c) of this chapter, as used in this chapter, "gross retail base period amount" means:
        (1) the aggregate amount of state gross retail and use taxes remitted under IC 6-2.5 by the businesses operating in the territory comprising a district during the full state fiscal year that precedes the date on which:
            (A) an advisory commission on industrial development adopted a resolution designating the district, in the case of a district that is not described in section 12(c) of this chapter; or
            (B) the legislative body of a county or municipality adopts an ordinance designating a district under section 10.5 of this chapter; or
        (2) an amount equal to:
            (A) the aggregate amount of state gross retail and use taxes remitted:
                (i) under IC 6-2.5 by the businesses operating in the territory comprising a district; and
                (ii) during the month in which an advisory commission on industrial development adopted a resolution designating the district; multiplied by
            (B) twelve (12);
        in the case of a district that is described in section 12(c) of this chapter.
SOURCE: IC 36-7-13-3.2; (02)CR119602.72. -->     SECTION 72. IC 36-7-13-3.2, AS AMENDED BY P.L.174-2001, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.2. Except as provided in section 10.7(d) of this chapter, as used in this chapter, "income tax base period amount" means:
        (1) the aggregate amount of state and local income taxes paid by employees employed in the territory comprising a district with respect to wages and salary

earned for work in the district for the state fiscal year that precedes the date on which:
            (A) an advisory commission on industrial development adopted a resolution designating the district, in the case of a district that is not described in section 12(c) of this chapter; or
            (B) the legislative body of a county or municipality adopts an ordinance designating a district under section 10.5 of this chapter; or
        (2) an amount equal to:
            (A) the aggregate amount of state and local income taxes paid by employees employed in the territory comprising a district with respect to wages and salary earned for work in the district during the month in which an advisory commission on industrial development adopted a resolution designating the district; multiplied by
            (B) twelve (12);
        in the case of a district that is described in section 12(c) of this chapter.
SOURCE: IC 36-7-13-10.5; (02)CR119602.73. -->     SECTION 73. IC 36-7-13-10.5, AS ADDED BY P.L.174-2001, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.5. (a) This section applies only to a county that meets the following conditions:
        (1) The county's annual rate of unemployment has been above the average annual statewide rate of unemployment during at least three (3) of the preceding five (5) years.
        (2) The median income of the county has:
            (A) declined over the preceding ten (10) years; or
            (B) has grown at a lower rate than the average annual statewide growth in median income during at least three (3) of the preceding five (5) years.


        (3) The population of the county (as determined by the legislative body of the county) has declined over the preceding ten (10) years.
    (b) Except as provided in section 10.7 of this chapter, in a county described in subsection (a), the legislative body of the county may adopt an ordinance designating an unincorporated part or unincorporated parts of the county as a district, and the legislative body of a municipality located within the county may adopt an ordinance designating a part or parts of the municipality as a district, if the legislative body finds all of the following:
        (1) The area to be designated as a district contains a building or buildings that:
            (A) have in aggregate, a total of at least fifty thousand (50,000) square feet of usable interior floor space; and
            (B) are vacant or will become vacant due to the relocation of the employer or the ceasing cessation of operations on the site by the employer.
        (2) Significantly fewer persons are employed in the area to be designated as a district than were employed in the area during the year that is ten (10) years previous to the current year.
        (3) There are significant obstacles to redevelopment in the area due to any of the following problems:
            (A) Obsolete or inefficient buildings.
            (B) Aging infrastructure or inefficient utility services.
            (C) Utility relocation requirements.
            (D) Transportation or access problems.
            (E) Topographical obstacles to redevelopment.
            (F) Environmental contamination or remediation.
    (c) A legislative body adopting an ordinance under subsection (b) shall designate the duration of the district. However, the duration may not exceed fifteen (15) years from the time of designation.
    (d) Except as provided in section 10.7 of this chapter, upon

adoption of an ordinance designating a district, the legislative body shall submit the ordinance to the budget committee for review and recommendation to the budget agency.
    (e) Except as provided in section 10.7 of this chapter, when considering the designation of a district by an ordinance adopted under this section, the budget committee and the budget agency must make the following findings before approving the designation of the district:
        (1) The area to be designated as a district meets the conditions necessary for the designation as a district.
        (2) The designation of the district will benefit the people of Indiana by protecting or increasing state and local tax bases and tax revenues for at least the duration of the district.
    (f) Except as provided in section 10.7 of this chapter, the income tax incremental amount and the gross retail incremental amount may not be allocated to the district until the budget agency approves the designation of the district by the local ordinance.
SOURCE: IC 36-7-13-10.7; (02)CR119602.74. -->     SECTION 74. IC 36-7-13-10.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.7. (a) This section applies to a district designated under section 10.5 of this chapter and approved by the budget agency before January 1, 2002, in a city having a population of more than thirty-one thousand (31,000) but less than thirty-two thousand (32,000).
    (b) An area is added to and becomes part of a district described in subsection (a) if the area consists of property that:
        (1) is located in a city having a population of more than thirty-one thousand (31,000) but less than thirty-two thousand (32,000); and
        (2) experienced a loss of at least three hundred (300) jobs during the calendar year ending December 31, 2001.
    (c) After the addition of property to a district described in subsection (a) under this section, the gross retail base period amount determined under section 2.4 of this chapter for the district before the addition of the property to the district under this section shall be increased by an amount equal to:

         (1) the aggregate amount of state gross retail and

use taxes remitted:
            (A) under IC 6-2.5 by the businesses operating in the area added to the district under subsection (b); and
            (B) during the period beginning after December 31, 2001, and ending before February 1, 2002; multiplied by
        (2) twelve (12).
    (d) After the addition of property to a district described in subsection (a) under this section, the income tax base period amount determined under section 3.2 of this chapter for the district before the addition of the property to the district under this section shall be increased by an amount equal to:
         (1) the aggregate amount of state and local income taxes paid:
            (A) by employees employed in the area added to the district under subsection (b) with respect to wages and salary earned for work in the area added; and
            (B) during the period beginning after December 31, 2001, and ending before February 1, 2002; multiplied by
        (2) twelve (12).
    (e) The addition of property to a district under this section does not require adoption of an ordinance, review by the budget committee, or approval of the budget agency under section 10.5 of this chapter.
".
SOURCE: Page 76, line 26; (02)CR119602.76. -->     Page 76, between lines 26 and 27, begin a new paragraph and insert:
SOURCE: IC 36-7-26-1; (02)CR119602.71. -->     "SECTION 71. IC 36-7-26-1, AS AMENDED BY P.L.291-2001, SECTION 200, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2002 (RETROACTIVE)]: Sec. 1. This chapter applies to the following:


        (1) A city having a population of more than seventy-five thousand (75,000) but less than ninety thousand (90,000).
        (2) A city having a population of more than ninety thousand (90,000) but less than one hundred ten thousand (110,000). one hundred five thousand (105,000) but less than one hundred twenty thousand (120,000).
        (3) A city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000).
        (4) A city having a population of more than one hundred twenty thousand (120,000) but less than one hundred fifty thousand (150,000).
SOURCE: IC 36-7-26-23; (02)CR119602.72. -->     SECTION 72. IC 36-7-26-23, AS AMENDED BY P.L.291-2001, SECTION 202, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2002 (RETROACTIVE)]: Sec. 23. (a) Before the first business day in October of each year, the board shall require the department to calculate the net increment for the preceding state fiscal year. The department shall transmit to the board a statement as to the net increment in sufficient time to permit the board to review the calculation and permit the transfers required by this section to be made on a timely basis.
    (b) There is established a sales tax increment financing fund to be administered by the treasurer of state. The fund is comprised of two (2) accounts called the net increment account and the credit account.
    (c) On the first business day in October of each year, that portion of the net increment calculated under subsection (a) that is needed:
        (1) to pay debt service on the bonds issued under section 24 of this chapter or to pay lease rentals under section 24 of this chapter; and
        (2) to establish and maintain a debt service reserve established by the commission or by a lessor that provides local public improvements to the commission;
shall be transferred to and deposited in the fund and credited to the net

increment account. Money credited to the net increment account is pledged to the purposes described in subdivisions (1) and (2), subject to the other provisions of this chapter.
    (d) On the first business day of October in each year, the remainder of:
        (1) eighty percent (80%) of the gross increment; minus
        (2) the amount credited to the net increment account on the same date;
shall be transferred and credited to the credit account.
    (e) The remainder of:
        (1) the gross increment; minus
        (2) the amounts credited to the net increment account and the credit account;
shall be deposited by the auditor of state as other gross retail and use taxes are deposited.
    (f) A city described in section 1(2), 1(3), or 1(4) of this chapter may receive not more than fifty percent (50%) of the net increment each year. During the time a district exists in a city described in section 1(2), 1(3) or 1(4) of this chapter, not more than a total of one million dollars ($1,000,000) of net increment may be paid to the city described in section 1(2), 1(3) or 1(4) of this chapter. During each year that a district exists in a city described in section 1(2) of this chapter, not more than one million dollars ($1,000,000) of net increment may be paid to the city described in section 1(2) of this chapter.
    (g) The auditor of state shall disburse all money in the fund that is credited to the net increment account to the commission in equal semiannual installments on November 30 and May 31 of each year.
SOURCE: IC 36-7-26-24; (02)CR119602.73. -->     SECTION 73. IC 36-7-26-24, AS AMENDED BY P.L.185-2001, SECTION 9, AND AS AMENDED BY P.L.291-2001, SECTION 203, IS AMENDED AND CORRECTED TO READ AS FOLLOWS [EFFECTIVE APRIL 1, 2002 (RETROACTIVE)]: Sec. 24. (a) The commission may issue bonds, payable in whole or in part, from money distributed from the fund to the commission, to finance a local public improvement under IC 36-7-14-25.1 or may make lease rental payments for a local public improvement under IC 36-7-14-25.2 and IC 36-7-14-25.3. The term of any bonds issued under this section may not exceed twenty (20) years, nor may the term of any lease agreement

entered into under this section exceed twenty (20) years. The commission shall transmit to the board a transcript of the proceedings with respect to the issuance of the bonds or the execution and delivery of a lease agreement as contemplated by this section. The transcript must include a debt service or lease rental schedule setting forth all payments required in connection with the bonds or the lease rentals.
    (b) On January 15 of each year, the commission shall remit to the treasurer of state the money disbursed from the fund that is credited to the net increment account that exceeds the amount needed to pay debt service or lease rentals and to establish and maintain a debt service reserve under this chapter in the prior year and before May 31 of that year. Amounts remitted under this subsection shall be deposited by the auditor of state as other gross retail and use taxes are deposited.
    (c) The commission in a city described in section 1(2) of this chapter may only distribute money from the fund only for the following:
        (1)
Road, interchange, and right-of-way improvements. and for
         (2) Acquisition costs of a commercial retail facility and for real property acquisition costs in furtherance of the road, interchange, and right-of-way improvements.
        (3) Demolition of commercial property and any related expenses incurred before or after the demolition of the commercial property.
        (4) For physical improvements or alterations of property that enhance the commercial viability of the district.

    (d) The commission in a city described in section 1(3) of this chapter may distribute money from the fund only for the following purposes:
        (1) For road, interchange, and right-of-way improvements and for real property acquisition costs in furtherance of the road, interchange, and right-of-way improvements.
        (2) For the demolition of commercial property and any related expenses incurred before or after the demolition of the commercial property.


    (e) The commission in a city described in section 1(4) of this chapter may distribute money from the fund only for the following purposes:
        (1) For:
            (A) the acquisition, demolition, and renovation of property; and
            (B) site preparation and financing;
        related to the development of housing in the district.
        (2) For physical improvements or alterations of property that enhance the commercial viability of the district.".
SOURCE: Page 86, line 13; (02)CR119602.86. -->     Page 86, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: ; (02)CR119602.96. -->     "SECTION 96. [EFFECTIVE UPON PASSAGE] (a) Notwithstanding IC 36-7-13-13(a), the legislative body of a unit that designates a community revitalization enhancement district described in IC 36-7-13-10.7(a), as added by this act, shall send to the department of state revenue by certified mail the updated list:
        (1) required under IC 36-7-13-13(a); and
        (2) listing the:
            (A) employers in the district; and
            (B) street names and the range of street numbers of each street in the district;
after the addition of property to the district under IC 36-7-13-10.7(b), as added by this act, not later than May 31, 2002.
    (b) Notwithstanding IC 36-7-13-13(b), the department of state revenue shall calculate the:
        (1) gross retail base period amount for the district described in subsection (a) as required under IC 36-7-13-10.7(c), as added by this act; and
        (2) income tax base period amount for the district described in subsection (a) as required under IC 36-7-13-10.7(d), as added by this act;
not later than June 30, 2002.
    (c) Notwithstanding IC 36-7-13-14, for the state fiscal year ending June 30, 2002, the department of state revenue shall calculate the:
        (1) gross retail incremental amount for the district described in subsection (a) using the gross retail base period amount determined under subsection (b)(1); and
        (2) income tax incremental amount for the district described in subsection (a) using the income tax base period amount determined under subsection (b)(2).

     (d) This SECTION expires June 30, 2003.".
SOURCE: Page 86, line 13; (02)CR119602.86. -->     Page 86, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: ; (02)CR119602.92. -->     "SECTION 92. [EFFECTIVE JULY 1, 2002] IC 4-33-12-6, as amended by this act, applies to riverboat admissions taxes collected after June 30, 2002.
SOURCE: ; (02)CR119602.98. -->     SECTION 98. [EFFECTIVE JULY 1, 2002] (a) To the extent that IC 6-1.1-18-9, IC 6-1.1-35-9, and IC 6-1.1-35-11, all as amended by this act, apply to contracts for services with respect to undervalued or omitted property, those sections apply only to contracts for services with respect to assessment dates after December 31, 2002.
    (b) This SECTION expires January 1, 2003.
".
SOURCE: Page 83, line 41; (02)CR119602.83. -->     Page 83, between lines 41 and 42, begin a new paragraph and insert:
SOURCE: ; (02)CR119602.89. -->     "SECTION 89. [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: (a) IC 6-1.1-3-8.5 and IC 6-1.1-8-4.5, both as added by this act, apply to assessments for assessment dates after February 28, 2002.
    (b) This SECTION expires January 1, 2003.
".
SOURCE: Page 86, line 13; (02)CR119602.86. -->     Page 86, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: ; (02)CR119602.96. -->     "SECTION 96. [EFFECTIVE UPON PASSAGE] (a) Notwithstanding IC 36-7-13-13(a), the legislative body of a unit that designates a community revitalization enhancement district described in IC 36-7-13-10.7(a), as added by this act, shall send to the department of state revenue by certified mail the updated list:
        (1) required under IC 36-7-13-13(a); and
        (2) listing the:
            (A) employers in the district; and
            (B) street names and the range of street numbers of each street in the district;
after the addition of property to the district under IC 36-7-13-10.7(b), as added by this act, not later than May 31, 2002.
    (b) Notwithstanding IC 36-7-13-13(b), the department of state revenue shall calculate the:
        (1) gross retail base period amount for the district described in subsection (a) as required under IC 36-7-13-10.7(c), as added by this act; and
        (2) income tax base period amount for the district described in subsection (a) as required under IC 36-7-13-10.7(d), as added by this act;
not later than June 30, 2002.
    (c) Notwithstanding IC 36-7-13-14, for the state fiscal year ending June 30, 2002, the department of state revenue shall calculate the:
        (1) gross retail incremental amount for the district described in subsection (a) using the gross retail base period amount determined under subsection (b)(1); and
        (2) income tax incremental amount for the district described in subsection (a) using the income tax base period amount determined under subsection (b)(2).

     (d) This SECTION expires June 30, 2003.".
SOURCE: Page 86, line 13; (02)CR119602.86. -->     Page 86, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: ; (02)CR119602.95. -->     "SECTION 95. [EFFECTIVE JANUARY 1, 2001 (RETROACTIVE)]: (a) This SECTION applies notwithstanding:
        (1) IC 6-1.1-3-7.5;
        (2) IC 6-1.1-10-31.1;
        (3) IC 6-1.1-11;
        (4) 50 IAC 4.2-12-1;
        (5) 50 IAC 16-3-2; and
        (6) 50 IAC 16-4-1.
    (b) For purposes of this SECTION, "taxpayer" means a taxpayer that filed a personal property tax return under IC 6-1.1-3

for the March 1, 2001, assessment date:
        (1) in a township having a population of more than ninety-three thousand (93,000) but less than one hundred ten thousand (110,000) located in a county containing a consolidated city; and
        (2) on which the taxpayer reported a total assessed value of personal property of more than fifty-five million dollars ($55,000,000) and less than fifty-six million dollars ($56,000,000).
    (c) A taxpayer may before January 1, 2003, file an amended personal property tax return for the March 1, 2001, assessment date.
    (d) With respect to an amended personal property tax return filed under subsection (c), a taxpayer is entitled to an exemption of tangible personal property under IC 6-1.1-10-29, IC 6-1.1-10-29.3, and IC 6-1.1-10-30 based on:
        (1) the total cost of inventory reported on Schedule B of the Form 103 filed as part of the amended personal property tax return; and
        (2) the ratio reported on the Form 103W filed as part of the taxpayer's return referred to in subsection (b).
    (e) A taxpayer shall pay taxes first due and payable in 2002 based on the assessed value of personal property reported in the amended personal property tax return filed under subsection (c).
    (f) This SECTION applies only to personal property taxes first due and payable in 2002.
    (g) This SECTION expires January 1, 2003.
".
SOURCE: Page 86, line 13; (02)CR119602.86. -->     Page 86, between lines 13 and 14, begin a new paragraph and insert:
SOURCE: ; (02)CR119602.92. -->     "SECTION 92. [EFFECTIVE UPON PASSAGE] (a) The definitions contained in IC 6-1.1-12.1 apply to this SECTION.
    (b) This SECTION applies to a property owner who:
        (1) is located in an economic revitalization area situated in a county having a population of more than one hundred forty-eight thousand (148,000) but less than one hundred seventy thousand (170,000);


        (2) during February of 1999, was determined by a designating body to be entitled to receive deductions for new manufacturing equipment under IC 6-1.1-12.1-4.5;
        (3) has substantially complied with the statement of benefits filed under IC 6-1.1-12.1-4.5, including job creation or retention, capital investment, and any other requirements imposed by the designating body; and
        (4) failed to timely file deduction applications under IC 6-1.1-12.1-5.5 for the property tax deduction under IC 6-1.1-12.1-4.5 with respect to deductions for property taxes first due and payable in 2001 and 2002.
    (c) Notwithstanding IC 6-1.1-12.1, the property owner is entitled to the deductions described in subsection (b)(4) for property taxes first due and payable in 2001 and 2002 if, before June 1, 2002, the property owner files the deduction applications that would have been necessary to obtain those deductions under IC 6-1.1-12.1.
    (d) Assessed value deductions granted under this SECTION apply to the property owner's property taxes first due and payable in 2001 and 2002. Notwithstanding any other law, the property owner may, before June 1, 2002, file amended personal property tax returns for property taxes first due and payable in 2001 and 2002. However, the interest provided for in IC 6-1.1-37-11 does not apply to a property tax refund due the property owner as a result of this SECTION.
    (e) This SECTION expires December 31, 2003.
".
SOURCE: Page 17, line 33; (02)CR119602.17. -->     Page 17, between lines 33 and 34, begin a new paragraph and insert:
SOURCE: IC 6-1.1-12.1-4.5; (02)CR119602.14. -->     "SECTION 14. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.4-2000, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: Sec. 4.5. (a) For purposes of this section, "personal property" means personal property other than inventory (as defined in IC 6-1.1-3-11(a)).
    (b) An applicant must provide a statement of benefits to the designating body. The applicant must provide the completed statement

of benefits form to the designating body before the hearing specified in section 2.5(c) of this chapter or before the installation of the new manufacturing equipment or new research and development equipment, or both, for which the person desires to claim a deduction under this chapter. The state board of tax commissioners shall prescribe a form for the statement of benefits. The statement of benefits must include the following information:
        (1) A description of the new manufacturing equipment or new research and development equipment, or both, that the person proposes to acquire.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment;
        an estimate of the number of individuals who will be employed or whose employment will be retained by the person as a result of the installation of the new manufacturing equipment or new research and development equipment, or both, and an estimate of the annual salaries of these individuals.
        (3) An estimate of the cost of the new manufacturing equipment or new research and development equipment, or both.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, an estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products by the new manufacturing equipment.
With the approval of the state board of tax commissioners, the statement of benefits may be incorporated in a designation application. Notwithstanding any other law, a statement of benefits is a public

record that may be inspected and copied under IC 5-14-3-3.
    (c) The designating body must review the statement of benefits required under subsection (b). The designating body shall determine whether an area should be designated an economic revitalization area or whether the deduction shall be allowed, based on (and after it has made) the following findings:
        (1) Whether the estimate of the cost of the new manufacturing equipment or new research and development equipment, or both, is reasonable for equipment of that type.
        (2) With respect to:
            (A) new manufacturing equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
            (B) new research and development equipment;
        whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the installation of the new manufacturing equipment or new research and development equipment, or both.
        (3) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed installation of new manufacturing equipment or new research and development equipment, or both.
        (4) With respect to new manufacturing equipment used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products, whether the estimate of the amount of solid waste or hazardous waste that will be converted into energy or other useful products can be reasonably expected to result from the installation of the new manufacturing equipment.
        (5) Whether any other benefits about which

information was requested are benefits that can be reasonably expected to result from the proposed installation of new manufacturing equipment or new research and development equipment, or both.
        (6) Whether the totality of benefits is sufficient to justify the deduction.
The designating body may not designate an area an economic revitalization area or approve the deduction unless it makes the findings required by this subsection in the affirmative.
    (d) Except as provided in subsection (f), an owner of new manufacturing equipment whose statement of benefits is approved before May 1, 1991, is entitled to a deduction from the assessed value of that equipment for a period of five (5) years. Except as provided in subsections (f) and (i), an owner of new manufacturing equipment or new research and development equipment, or both, whose statement of benefits is approved after June 30, 2000, is entitled to a deduction from the assessed value of that equipment for the number of years determined by the designating body under subsection (h). Except as provided in subsections (f) and (g) and in section 2(i)(3) of this chapter, the amount of the deduction that an owner is entitled to for a particular year equals the product of:
        (1) the assessed value of the new manufacturing equipment or new research and development equipment, or both, in the year that the equipment is installed; multiplied by
        (2) the percentage prescribed in the table set forth in subsection (e).
For purposes of determining the deduction from assessed value under this subsection in a county having a population of more than one hundred five thousand (105,000) but less than one hundred ten thousand (110,000), construction in process as of an assessment date is treated as having been installed to the extent it would have been assessed as new manufacturing equipment or new research and development equipment if it had been installed before that assessment date.
    (e) The percentage to be used in calculating the deduction under subsection (d) is as follows:
        (1) For deductions allowed over a one (1) year period:


            YEAR OF DEDUCTION    PERCENTAGE
    1st    100%
    2nd and thereafter    0%
        (2) For deductions allowed over a two (2) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    50%
    3rd and thereafter    0%
        (3) For deductions allowed over a three (3) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    66%
    3rd    33%
    4th and thereafter    0%
        (4) For deductions allowed over a four (4) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    75%
    3rd    50%
    4th    25%
    5th and thereafter    0%
        (5) For deductions allowed over a five (5) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    80%
    3rd    60%
    4th    40%
    5th    20%
    6th and thereafter    0%
        (6) For deductions allowed over a six (6) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    85%
    3rd    66%
    4th    50%
    5th    34%
    6th    25%
    7th and thereafter    0%
        (7) For deductions allowed over a seven (7) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    85%
    3rd    71%
    4th    57%
    5th    43%
    6th    29%
    7th    14%
    8th and thereafter    0%
        (8) For deductions allowed over an eight (8) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    88%
    3rd    75%
    4th    63%
    5th    50%
    6th    38%
    7th    25%
    8th    13%
    9th and thereafter    0%
        (9) For deductions allowed over a nine (9) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    88%
    3rd    77%
    4th    66%
    5th    55%
    6th    44%
    7th    33%
    8th    22%
    9th    11%
    10th and thereafter    0%
        (10) For deductions allowed over a ten (10) year period:
    YEAR OF DEDUCTION     PERCENTAGE
    1st    100%
    2nd    90%
    3rd    80%
    4th    70%
    5th    60%
    6th    50%
    7th    40%
    8th    30%
    9th    20%
    10th    10%
    11th and thereafter    0%
    (f) Notwithstanding subsections (d) and (e), a deduction under this section is not allowed in the first year the deduction is claimed for new manufacturing equipment or new research and development equipment, or both, to the extent that it would cause the assessed value of all of the personal property of the owner in the taxing district in which the equipment is located (excluding personal property that is assessed as construction in process, except in a county having a population of more than one hundred five thousand (105,000) but less than one hundred ten thousand (110,000)) to be less than the assessed value of all of the personal property of the owner in that taxing district (excluding personal property that is assessed as construction in process, except in a county having a population of more than one hundred five thousand (105,000) but less than one hundred ten thousand (110,000)) in the immediately preceding year.
    (g) If a deduction is not fully allowed under subsection (f) in the first year the deduction is claimed, then the percentages specified in subsection (d) or (e) apply in the subsequent years to the amount of deduction that was allowed in the first year.
    (h) For an economic revitalization area designated before July 1, 2000, the designating body shall determine whether a property owner whose statement of benefits is approved after April 30, 1991, is entitled to a deduction for five (5) or ten (10) years. For an economic revitalization area designated after June 30, 2000, the designating body shall determine the number of years the deduction is allowed. However, the deduction may not be allowed for more than ten (10) years. This determination shall be made:
        (1) as part of the resolution adopted under section 2.5 of this chapter; or
        (2) by resolution adopted within sixty (60) days after receiving a copy of a property owner's certified deduction application from

the state board of tax commissioners. A certified copy of the resolution shall be sent to the county auditor and the state board of tax commissioners.
A determination about the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by following the procedure under subdivision (2).
    (i) The owner of new manufacturing equipment that is directly used to dispose of hazardous waste is not entitled to the deduction provided by this section for a particular assessment year if during that assessment year the owner:
        (1) is convicted of a violation under IC 13-7-13-3 (repealed), IC 13-7-13-4 (repealed), or IC 13-30-6; or
        (2) is subject to an order or a consent decree with respect to property located in Indiana based on a violation of a federal or state rule, regulation, or statute governing the treatment, storage, or disposal of hazardous wastes that had a major or moderate potential for harm.    ".
SOURCE: Page 83, line 41; (02)CR119602.83. -->     Page 83, between lines 41 and 42, begin a new paragraph and insert:
SOURCE: ; (02)CR119602.88. -->     "SECTION 88. [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]: (a) IC 6-1.1-12.1-4.5, as amended by this act, applies only to property taxes first due and payable after December 31, 2002.
    (b) This SECTION expires January 1, 2004.
".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1196 as reprinted February 5, 2002.)



and when so amended that said bill do pass.

Committee Vote: Yeas 15, Nays 0.

____________________________________

    Borst
Chairperson


CR119602/DI 52    2002