Page 3, between lines 5 and 6, begin a new paragraph and insert:
"SECTION 2.IC 6-1.1-17-10, AS AMENDED BY P.L.90-2002,
$ECTION 151, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: Sec. 10. When the aggregate
tax rate within a political subdivision, as approved or modified by the
county board of tax adjustment, exceeds the maximum aggregate tax
rate prescribed in IC 6-1.1-18-3(a), IC 6-1.1-18-3(b), the county
auditor shall certify the budgets, tax rates, and tax levies of the political
subdivisions whose tax rates compose the aggregate tax rate within the
political subdivision, as approved or modified by the county board, to
the department of local government finance for final review. For
purposes of this section, the maximum aggregate tax rate limit
exceptions provided in IC 6-1.1-18-3(b) IC 6-1.1-18-3(c) do not apply.
SECTION 3. IC 6-1.1-17-17, AS AMENDED BY P.L.90-2002,
$ECTION 159, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: Sec. 17. (a) As used in this
section, "cooperative insurance program" means a program
through which two (2) or more political subdivisions cooperatively
arrange for coverage, through a self-insurance arrangement, a
mutual association, an interinsurance arrangement, a reciprocal
exchange, or another arrangement, for certain risks of:
(1) the political subdivisions;
(2) employees of the political subdivisions; or
(3) a combination of subdivisions (1) and (2).
The term includes a cooperative risk management program
established under IC 20-5-2.7.
(b) Subject to the limitations contained in IC 6-1.1-19 and
IC 6-1.1-18.5, the department of local government finance may at any
time increase the tax rate and tax levy of a political subdivision for the
following reasons:
(1) To pay the principal or interest upon a funding, refunding, or
judgment funding obligation of a political subdivision.
(2) To pay the interest or principal upon an outstanding obligation
of the political subdivision.
(3) To pay a judgment rendered against the political subdivision.
(4) To pay lease rentals that have become an obligation of the
political subdivision under IC 21-5-11 or IC 21-5-12.
(c) A levy may not be increased in excess of the levy limits
imposed under IC 6-1.1-18.5, IC 6-1.1-18.6, and IC 6-1.1-19 to pay
amounts owed as a result of the participation of a political
subdivision in a cooperative insurance program.
SECTION 4. IC 6-1.1-18-3, AS AMENDED BY P.L.224-2003,
$ECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: Sec. 3. (a) As used in this
section, "cooperative insurance program" means a program
through which two (2) or more political subdivisions cooperatively
arrange for coverage, through a self-insurance arrangement, a
mutual association, an interinsurance arrangement, a reciprocal
exchange, or another arrangement, for certain risks of:
(1) the political subdivisions;
(2) employees of the political subdivisions; or
(3) a combination of subdivisions (1) and (2).
The term includes a cooperative risk management program
established under IC 20-5-2.7.
(b) Except as provided in subsection (b), (c), the sum of all tax rates
for all political subdivisions imposed on tangible property within a
political subdivision may not exceed:
(1) forty-one and sixty-seven hundredths cents ($0.4167) on each
one hundred dollars ($100) of assessed valuation in territory
outside the corporate limits of a city or town; or
(2) sixty-six and sixty-seven hundredths cents ($0.6667) on each
one hundred dollars ($100) of assessed valuation in territory inside
the corporate limits of a city or town.
(b) (c) The proper officers of a political subdivision shall fix tax
rates which are sufficient to provide funds for the purposes itemized in
this subsection. The portion of a tax rate fixed by a political subdivision
shall not be considered in computing the tax rate limits prescribed in
subsection (a) (b) if that portion is to be used for one (1) of the
following purposes:
(1) To pay the principal or interest on a funding, refunding, or
judgment funding obligation of the political subdivision.
(2) To pay the principal or interest on an outstanding obligation
issued by the political subdivision if notice of the sale of the
obligation was published before March 9, 1937.
(3) To pay the principal or interest upon:
(A) an obligation issued by the political subdivision to meet an
emergency which results from a flood, fire, pestilence, war, or
any other major disaster; or
(B) a note issued under IC 36-2-6-18, IC 36-3-4-22,
IC 36-4-6-20, or IC 36-5-2-11 to enable a city, town, or
county to acquire necessary equipment or facilities for
municipal or county government.
(4) To pay the principal or interest upon an obligation issued in the
manner provided in IC 6-1.1-20-3 (before its repeal) or
IC 6-1.1-20-3.1 through IC 6-1.1-20-3.2.
(5) To pay a judgment rendered against the political subdivision.
(6) To meet the requirements of the family and children's fund for
child services (as defined in IC 12-19-7-1).
(7) To meet the requirements of the county hospital care for the
indigent fund.
(8) To meet the requirements of the children's psychiatric
residential treatment services fund for children's psychiatric
residential treatment services (as defined in IC 12-19-7.5-1).
(c) (d) Except as otherwise provided in IC 6-1.1-19 or
IC 6-1.1-18.5, a county board of tax adjustment, a county auditor, or
the department of local government finance may review the portion of
a tax rate described in subsection (b) (c) only to determine if it exceeds
the portion actually needed to provide for one (1) of the purposes
itemized in that subsection.
(e) A levy may not be increased in excess of the levy limits
imposed under IC 6-1.1-18.5, IC 6-1.1-18.6, and IC 6-1.1-19 to pay
amounts owed as a result of the participation of a political
subdivision in a cooperative insurance program.".
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