Bill Text: IN HB1001 | 2011 | Regular Session | Enrolled


Bill Title: Budget bill.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2011-05-16 - SECTION 303 effective 05/10/2011 [HB1001 Detail]

Download: Indiana-2011-HB1001-Enrolled.html


First Regular Session 117th General Assembly (2011)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2010 Regular Session of the General Assembly.


    HOUSE ENROLLED ACT No. 1001



     AN ACT to amend the Indiana Code concerning state and local administration and to make an appropriation.

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

    
         SECTION 1. [EFFECTIVE JULY 1, 2011]
    
             (a) The following definitions apply throughout this act:
             (1) "Augmentation allowed" means the governor and the budget agency are
             authorized to add to an appropriation in this act from revenues accruing to the
             fund from which the appropriation was made.
             (2) "Biennium" means the period beginning July 1, 2011, and ending June 30, 2013.
             Appropriations appearing in the biennial column for construction or other permanent
             improvements do not revert under IC 4-13-2-19 and may be allotted.
             (3) "Deficiency appropriation" or "special claim" means an appropriation available
             during the 2010-2011 fiscal year.
             (4) "Equipment" includes machinery, implements, tools, furniture,
             furnishings, vehicles, and other articles that have a calculable period of service
             that exceeds twelve (12) calendar months.
             (5) "Fee replacement" includes payments to universities to be used to pay indebtedness
             resulting from financing the cost of planning, purchasing, rehabilitation, construction,
             repair, leasing, lease-purchasing, or otherwise acquiring land, buildings, facilities,
             and equipment to be used for academic and instructional purposes.
             (6) "Federally qualified health center" means a community health center that is
             designated by the Health Resources Services Administration, Bureau of Primary Health
             Care, as a Federally Qualified Health Center Look Alike under the FED 330 Consolidated


             Health Center Program authorization, including Community Health Center (330e), Migrant
             Health Center (330g), Health Care for the Homeless (330h), Public Housing Primary
             Care (330i), and School Based Health Centers (330).
             (7) "Other operating expense" includes payments for "services other than personal",
             "services by contract", "supplies, materials, and parts", "grants, subsidies, refunds,
             and awards", "in-state travel", "out-of-state travel", and "equipment".
             (8) "Pension fund contributions" means the state of Indiana's contributions to a
             specific retirement fund.
             (9) "Personal services" includes payments for salaries and wages to officers and
             employees of the state (either regular or temporary), payments for compensation
             awards, and the employer's share of Social Security, health insurance, life insurance,
             dental insurance, vision insurance, deferred compensation - state match, leave
             conversion, disability, and retirement fund contributions.
             (10) "SSBG" means the Social Services Block Grant. This was formerly referred to
             as "Title XX".
             (11) "State agency" means:
             (A) each office, officer, board, commission, department, division, bureau, committee,
             fund, agency, authority, council, or other instrumentality of the state;
             (B) each hospital, penal institution, and other institutional enterprise of the
             state;
             (C) the judicial department of the state; and
             (D) the legislative department of the state.
             However, this term does not include cities, towns, townships, school cities, school
             townships, school districts, other municipal corporations or political subdivisions
             of the state, or universities and colleges supported in whole or in part by state
             funds.
             (12) "State funded community health center" means a public or private not for profit
             (501(c)(3)) organization that provides comprehensive primary health care services to
             all age groups.
             (13) "Total operating expense" includes payments for both "personal services" and
             "other operating expense".
             (b) The state board of finance may authorize advances to boards or persons having
             control of the funds of any institution or department of the state of a sum of
             money out of any appropriation available at such time for the purpose of establishing
             working capital to provide for payment of expenses in the case of emergency when
             immediate payment is necessary or expedient. Advance payments shall be made by
             warrant by the auditor of state, and properly itemized and receipted bills or invoices
             shall be filed by the board or persons receiving the advance payments.
             (c) All money appropriated by this act shall be considered either a direct appropriation
             or an appropriation from a rotary or revolving fund.
             (1) Direct appropriations are subject to withdrawal from the state treasury and for
             expenditure for such purposes, at such time, and in such manner as may be prescribed
             by law. Direct appropriations are not subject to return and rewithdrawal from the
             state treasury, except for the correction of an error which may have occurred in
             any transaction or for reimbursement of expenditures which have occurred in the
             same fiscal year.
             (2) A rotary or revolving fund is any designated part of a fund that is set apart as
             working capital in a manner prescribed by law and devoted to a specific purpose
             or purposes. The fund consists of earnings and income only from certain sources
             or combination of sources. The money in the fund shall be used for the purpose
             designated by law as working capital. The fund at any time consists of the
             original appropriation to the fund, if any, all receipts accrued to the fund, and all
             money withdrawn from the fund and invested or to be invested. The fund shall be
             kept intact by separate entries in the auditor of state's office, and no part of the fund
             shall be used for any purpose other than the lawful purpose of the fund or revert
             to any other fund at any time. However, any unencumbered excess above any prescribed
             amount shall be transferred to the state general fund at the close of each fiscal year
             unless otherwise specified in the Indiana Code.
    
         SECTION 2. [EFFECTIVE JULY 1, 2011]
    
             For the conduct of state government, its offices, funds, boards, commissions, departments,
             societies, associations, services, agencies, and undertakings, and for other appropriations
             not otherwise provided by statute, the following sums in SECTIONS 3 through 10 are
             appropriated for the periods of time designated from the general fund of the state of
             Indiana or other specifically designated funds.
    
             In this act, whenever there is no specific fund or account designated, the appropriation
             is from the general fund.
    
         SECTION 3. [EFFECTIVE JULY 1, 2011]
    
             GENERAL GOVERNMENT
    
             A. LEGISLATIVE
    
             FOR THE GENERAL ASSEMBLY
                 LEGISLATORS' SALARIES - HOUSE
                         Total Operating Expense              6,198,756     6,198,756
                 HOUSE EXPENSES
                         Total Operating Expense              10,299,328     10,700,339
                 LEGISLATORS' SALARIES - SENATE
                         Total Operating Expense              2,055,318     2,055,318
                 SENATE EXPENSES
                         Total Operating Expense              10,293,712     11,692,594
    
             Included in the above appropriations for house and senate expenses are funds for
             a legislative business per diem allowance, meals, and other usual and customary
             expenses associated with legislative affairs. Except as provided below, this allowance
             is to be paid to each member of the general assembly for every day, including Sundays,
             during which the general assembly is convened in regular or special session, commencing
             with the day the session is officially convened and concluding with the day the session
             is adjourned sine die. However, after five (5) consecutive days of recess, the legislative
             business per diem allowance is to be made on an individual voucher basis until the
             recess concludes.
    
             Each member of the general assembly is entitled, when authorized by the speaker of the
             house or the president pro tempore of the senate, to the legislative business per diem
             allowance for every day the member is engaged in official business.
    
             The legislative business per diem allowance that each member of the general assembly
             is entitled to receive equals the maximum daily amount allowable to employees of the
             executive branch of the federal government for subsistence expenses while away from
             home in travel status in the Indianapolis area. The legislative business per diem changes
             each time there is a change in that maximum daily amount.
    
             In addition to the legislative business per diem allowance, each member of the general
             assembly shall receive the mileage allowance in an amount equal to the standard mileage
             rates for personally owned transportation equipment established by the federal Internal
             Revenue Service for each mile necessarily traveled from the member's usual place
             of residence to the state capitol. However, if the member traveled by a means other
             than by motor vehicle, and the member's usual place of residence is more than one
             hundred (100) miles from the state capitol, the member is entitled to reimbursement
             in an amount equal to the lowest air travel cost incurred in traveling from the usual
             place of residence to the state capitol. During the period the general assembly is
             convened in regular or special session, the mileage allowance shall be limited to
             one (1) round trip each week per member.
    
             Any member of the general assembly who is appointed by the governor, speaker of
             the house, president or president pro tempore of the senate, house or senate minority
             floor leader, or Indiana legislative council to serve on any research, study, or survey
             committee or commission, or who attends any meetings authorized or convened under
             the auspices of the Indiana legislative council, including pre-session conferences and
             federal-state relations conferences, is entitled, when authorized by the legislative
             council, to receive the legislative business per diem allowance for each day the
             member is in actual attendance and is also entitled to a mileage allowance, at the
             rate specified above, for each mile necessarily traveled from the member's usual
             place of residence to the state capitol, or other in-state site of the committee,
             commission, or conference. The per diem allowance and the mileage allowance
             permitted under this paragraph shall be paid from the legislative council appropriation
             for legislator and lay member travel unless the member is attending an out-of-state
             meeting, as authorized by the speaker of the house of representatives or the president
             pro tempore of the senate, in which case the member is entitled to receive:
             (1) the legislative business per diem allowance for each day the member is engaged
             in approved out-of-state travel; and
             (2) reimbursement for traveling expenses actually incurred in connection with the
             member's duties, as provided in the state travel policies and procedures established
             by the legislative council.
    
             Notwithstanding the provisions of this or any other statute, the legislative council
             may adopt, by resolution, travel policies and procedures that apply only to members
             of the general assembly or to the staffs of the house of representatives, senate, and
             legislative services agency, or both members and staffs. The legislative council may
             apply these travel policies and procedures to lay members serving on research, study,
             or survey committees or commissions that are under the jurisdiction of the legislative
             council. Notwithstanding any other law, rule, or policy, the state travel policies and
             procedures established by the Indiana department of administration and approved
             by the budget agency do not apply to members of the general assembly, to the staffs
             of the house of representatives, senate, or legislative services agency, or to lay members
             serving on research, study, or survey committees or commissions under the jurisdiction
             of the legislative council (if the legislative council applies its travel policies and
             procedures to lay members under the authority of this SECTION), except that, until
             the legislative council adopts travel policies and procedures, the state travel policies
             and procedures established by the Indiana department of administration and approved
             by the budget agency apply to members of the general assembly, to the staffs of the house
             of representatives, senate, and legislative services agency, and to lay members serving
             on research, study, or survey committees or commissions under the jurisdiction of the
             legislative council. The executive director of the legislative services agency is responsible
             for the administration of travel policies and procedures adopted by the legislative
             council. The auditor of state shall approve and process claims for reimbursement of travel
             related expenses under this paragraph based upon the written affirmation of the speaker
             of the house of representatives, the president pro tempore of the senate, or the executive
             director of the legislative services agency that those claims comply with the travel
             policies and procedures adopted by the legislative council. If the funds appropriated
             for the house and senate expenses and legislative salaries are insufficient to pay all
             the necessary expenses incurred, including the cost of printing the journals of the
             house and senate, there is appropriated such further sums as may be necessary to pay
             such expenses.
    
                 LEGISLATORS' SUBSISTENCE
                 LEGISLATORS' EXPENSES - HOUSE
                         Total Operating Expense              2,524,980     2,620,929
                 LEGISLATORS' EXPENSES - SENATE
                         Total Operating Expense              1,195,888     1,015,872
    
             Each member of the general assembly is entitled to a subsistence allowance of forty
             percent (40%) of the maximum daily amount allowable to employees of the executive
             branch of the federal government for subsistence expenses while away from home in
             travel status in the Indianapolis area for:
             (1) each day that the general assembly is not convened in regular or special session;
             and
             (2) each day after the first session day held in November and before the first session
             day held in January.
    
             However, the subsistence allowance under subdivision (2) may not be paid with respect
             to any day after the first session day held in November and before the first session
             day held in January with respect to which all members of the general assembly are
             entitled to a legislative business per diem.
    
             The subsistence allowance is payable from the appropriations for legislators' subsistence.
    
             The officers of the senate are entitled to the following amounts annually in addition
             to the subsistence allowance: president pro tempore, $7,000; assistant president
             pro tempore, $3,000; majority floor leader, $5,500; assistant majority floor leaders,
             $3,500; majority floor leader emeritus, $1,500; majority caucus chair, $5,500;
             assistant majority caucus chairs, $1,500; appropriations committee chair, $5,500;
             tax and fiscal policy committee chair, $5,500; appropriations committee ranking
             majority member, $2,000; tax and fiscal policy committee ranking majority member,
             $2,000; majority whip, $4,000; assistant majority whip, $2,000; minority floor leader,
             $6,000; minority leader emeritus, $1,500; minority caucus chair, $5,000; minority
             assistant floor leader, $5,000; appropriations committee ranking minority member,
             $2,000; tax and fiscal policy committee ranking minority member, $2,000; minority
             whip(s), $2,000; assistant minority caucus chair(s), $1,000; agriculture and natural
             resources committee chair, $1,000; public policy committee chair, $1,000; corrections,
             criminal, and civil matters committee chair, $1,000; education and career development
             chair, $1,000; elections committee chair, $1,000; energy and environmental affairs
             committee chair, $1,000; pensions and labor committee chair, $1,000; health and
             provider services committee chair, $1,000; homeland security, transportation, and
             veterans affairs committee chair, $1,000; insurance and financial institutions committee
             chair, $1,000; judiciary committee chair, $1,000; local government committee chair,
             $1,000; utilities and technology committee chair, $1,000; commerce and economic
             development committee chair, $1,000; appointments and claims committee chair, $1,000;
             and ethics committee chair, $1,000. If an officer fills more than one (1) leadership
             position, the officer shall be paid for the higher paid position.
    
             Officers of the house of representatives are entitled to the following amounts annually
             in addition to the subsistence allowance: speaker of the house, $6,500; speaker pro
             tempore, $5,000; deputy speaker pro tempore, $1,500; majority leader, $5,000; majority
             caucus chair, $5,000; assistant majority caucus chair, $1,000; ways and means committee
             chair, $5,000; ways and means committee ranking majority member, $3,000; ways and
             means committee, chairman of the education subcommittee, $1,500; speaker pro tempore
             emeritus, $1,500; budget subcommittee chair, $3,000; majority whip, $3,500; assistant
             majority whip, $1,000; assistant majority leader, $1,000; minority leader, $5,500;
             minority caucus chair, $4,500; ways and means committee ranking minority member,
             $3,500; minority whip, $2,500; assistant minority leader, $4,500; second assistant
             minority leader, $1,500; and deputy assistant minority leader, $1,000.
    
             If the senate or house of representatives eliminates a committee or officer referenced
             in this SECTION and replaces the committee or officer with a new committee or position,
             the foregoing appropriations for subsistence shall be used to pay for the new committee
             or officer. However, this does not permit any additional amounts to be paid under this
             SECTION for a replacement committee or officer than would have been spent for the
             eliminated committee or officer. If the senate or house of representatives creates a
             new, additional committee or officer, or assigns additional duties to an existing officer,
             the foregoing appropriations for subsistence shall be used to pay for the new committee
             or officer, or to adjust the annual payments made to the existing officer, in amounts
             determined by the legislative council.
    
             If the funds appropriated for legislators' subsistence are insufficient to pay all the
             subsistence incurred, there are hereby appropriated such further sums as may be
             necessary to pay such subsistence.
    
             FOR THE LEGISLATIVE COUNCIL AND THE LEGISLATIVE SERVICES AGENCY
                         Total Operating Expense              10,388,768     10,888,768
                 LEGISLATOR AND LAY MEMBER TRAVEL
                         Total Operating Expense              750,000     750,000

             Included in the above appropriations for the legislative council and legislative services
             agency expenses are funds for usual and customary expenses associated with legislative
             services.
    
             If the funds above appropriated for the legislative council and the legislative services
             agency and for legislator and lay member travel are insufficient to pay all the necessary
             expenses incurred, there are hereby appropriated such further sums as may be necessary
             to pay those expenses.
    
             Any person other than a member of the general assembly who is appointed by the governor,
             speaker of the house, president or president pro tempore of the senate, house or senate
             minority floor leader, or legislative council to serve on any research, study, or survey
             committee or commission is entitled, when authorized by the legislative council, to a
             per diem instead of subsistence of $75 per day during the 2011-2013 biennium. In
             addition to the per diem, such a person is entitled to mileage reimbursement, at the
             rate specified for members of the general assembly, for each mile necessarily traveled
             from the person's usual place of residence to the state capitol or other in-state site
             of the committee, commission, or conference. However, reimbursement for any out-of-state
             travel expenses claimed by lay members serving on research, study, or survey committees
             or commissions under the jurisdiction of the legislative council shall be based
             on SECTION 14 of this act, until the legislative council applies those travel policies
             and procedures that govern legislators and their staffs to such lay members as authorized
             elsewhere in this SECTION. The allowance and reimbursement permitted in this paragraph


             shall be paid from the legislative council appropriations for legislative and lay member
             travel unless otherwise provided for by a specific appropriation.
    
                 LEGISLATIVE COUNCIL CONTINGENCY FUND
                         Total Operating Expense                        225,000
    
             Disbursements from the fund may be made only for purposes approved by
             the chairman and vice chairman of the legislative council.
    
             The legislative services agency shall charge the following fees, unless the
             legislative council sets these or other fees at different rates:
    
                 Annual subscription to the session document service for sessions ending in
                 odd-numbered years: $900
    
                 Annual subscription to the session document service for sessions ending in
                 even-numbered years: $500
    
                 Per page charge for copies of legislative documents: $0.15
    
                 Annual charge for interim calendar: $10
    
                 Daily charge for the journal of either house: $2
    
                 PRINTING AND DISTRIBUTION
                         Total Operating Expense              975,000     975,000

             The above funds are appropriated for the printing and distribution of documents
             published by the legislative council. These documents include journals, bills,
             resolutions, enrolled documents, the acts of the first and second regular sessions
             of the 117th general assembly, the supplements to the Indiana Code for fiscal years
             2011-2012 and 2012-2013, and the publication of the Indiana Administrative Code
             and the Indiana Register. Upon completion of the distribution of the Acts and the
             supplements to the Indiana Code, as provided in IC 2-6-1.5, remaining copies may
             be sold at a price or prices periodically determined by the legislative council. If
             the above appropriations for the printing and distribution of documents published
             by the legislative council are insufficient to pay all of the necessary expenses
             incurred, there are hereby appropriated such sums as may be necessary to pay such
             expenses.
    
                 COUNCIL OF STATE GOVERNMENTS ANNUAL DUES
                         Other Operating Expense              143,944     143,944
                 NATIONAL CONFERENCE OF STATE LEGISLATURES ANNUAL DUES
                         Other Operating Expense              190,337     190,337
                 NATIONAL CONFERENCE OF INSURANCE LEGISLATORS ANNUAL DUES


                         Other Operating Expense              10,000     10,000
    
             FOR THE INDIANA LOBBY REGISTRATION COMMISSION
                         Total Operating Expense              271,910     271,910
    
             FOR THE PUBLIC EMPLOYEES' RETIREMENT FUND
                 LEGISLATORS' RETIREMENT FUND
                         Other Operating Expense              113,099     150,000
    
             B. JUDICIAL
    
             FOR THE SUPREME COURT
                         Personal Services              7,519,219     7,519,219
                         Other Operating Expense              2,047,015     2,047,015
    
             The above appropriation for the supreme court personal services includes the subsistence
             allowance as provided by IC 33-38-5-8.
    
                 LOCAL JUDGES' SALARIES
                         Personal Services              56,979,814     56,979,814
                         Other Operating Expense              61,441     61,441
                 COUNTY PROSECUTORS' SALARIES
                         Personal Services              24,546,298     24,546,298
                         Other Operating Expense              1     1
    
             The above appropriations for county prosecutors' salaries represent the amounts authorized
             by IC 33-39-6-5 and that are to be paid from the state general fund.
    
             In addition to the appropriations for local judges' salaries and for county prosecutors'
             salaries, there are hereby appropriated for personal services the amounts that the
             state is required to pay for salary changes or for additional courts created by the 117th
             general assembly.

                 TRIAL COURT OPERATIONS
                         Total Operating Expense              596,075     596,075
                 INDIANA CONFERENCE FOR LEGAL EDUCATION OPPORTUNITY
                         Total Operating Expense              778,750     778,750
    
             The above funds are appropriated to the division of state court administration in
             compliance with the provisions of IC 33-24-13-7.
    
                 PUBLIC DEFENDER COMMISSION
                         Total Operating Expense              12,850,000     12,850,000
    
             The above appropriation is made in addition to the distribution authorized by


             IC 33-37-7-9(c) for the purpose of reimbursing counties for indigent defense services
             provided to a defendant. The division of state court administration of the supreme
             court of Indiana shall provide staff support to the commission and shall administer
             the public defense fund. The administrative costs may come from the public defense
             fund. Any balance in the public defense fund is appropriated to the public defender
             commission.
    
                 GUARDIAN AD LITEM
                         Total Operating Expense              2,970,248     2,970,248
    
             The division of state court administration shall use the foregoing appropriation
             to administer an office of guardian ad litem and court appointed special advocate
             services and to provide matching funds to counties that are required to implement,
             in courts with juvenile jurisdiction, a guardian ad litem and court appointed special
             advocate program for children who are alleged to be victims of child abuse or neglect
             under IC 31-33 and to administer the program. A county may use these matching funds
             to supplement amounts collected as fees under IC 31-40-3 to be used for the operation
             of guardian ad litem and court appointed special advocate programs. The county fiscal
             body shall appropriate adequate funds for the county to be eligible for these matching
             funds. In each fiscal year, the office of guardian ad litem shall set aside at least
             thirty thousand dollars ($30,000) from the foregoing appropriation to provide older
             youth foster care.
    
                 CIVIL LEGAL AID
                         Total Operating Expense              1,500,000     1,500,000
    
             The above funds include the appropriation provided in IC 33-24-12-7.
    
                 SPECIAL JUDGES - COUNTY COURTS
                         Total Operating Expense              149,000     149,000
    
             If the funds appropriated above for special judges of county courts are insufficient
             to pay all of the necessary expenses that the state is required to pay under IC 34-35-1-4,
             there are hereby appropriated such further sums as may be necessary to pay these
             expenses.

                 COMMISSION ON RACE AND GENDER FAIRNESS
                         Total Operating Expense              380,996     380,996

             FOR THE COURT OF APPEALS
                         Personal Services              9,283,964     9,283,964
                         Other Operating Expense              1,032,777     1,032,777
    
             The above appropriations for the court of appeals personal services include the
             subsistence allowance provided by IC 33-38-5-8.


    
             FOR THE TAX COURT
                         Personal Services              547,228     547,228
                         Other Operating Expense              125,785     125,785
    
             FOR THE JUDICIAL CENTER
                         Personal Services              1,790,512     1,790,512
                         Other Operating Expense              1,030,670     1,030,670
    
             The above appropriations for the judicial center include the appropriations for the
             judicial conference.
    
                 DRUG AND ALCOHOL PROGRAMS FUND
                         Total Operating Expense              100,000     100,000
    
             The above funds are appropriated notwithstanding the distribution under IC 33-37-7-9
             for the purpose of administering, certifying, and supporting alcohol and drug services
             programs under IC 12-23-14. However, if additional funds are needed to carry out the
             purpose of the program, existing revenues in the fund may be allotted.
    
                 INTERSTATE COMPACT FOR ADULT OFFENDER SUPERVISION
                         Total Operating Expense              222,000     222,000
    
             FOR THE PUBLIC DEFENDER
                         Personal Services              5,691,079     5,691,079
                         Other Operating Expense              973,837     973,837
    
             FOR THE PUBLIC DEFENDER COUNCIL
                         Personal Services              850,195     850,195
                         Other Operating Expense              513,902     513,902
    
             FOR THE PROSECUTING ATTORNEYS' COUNCIL
                         Personal Services              627,685     627,685
                         Other Operating Expense              587,591     587,591
                 DRUG PROSECUTION
                     Drug Prosecution Fund (IC 33-39-8-6)
                         Total Operating Expense              105,328     105,328
                     Augmentation allowed.

         FOR THE PUBLIC EMPLOYEES' RETIREMENT FUND
                 JUDGES' RETIREMENT FUND
                         Other Operating Expense              11,757,357     14,077,436
                 PROSECUTORS' RETIREMENT FUND
                         Other Operating Expense              1,838,908     2,080,000


             C. EXECUTIVE
    
             FOR THE GOVERNOR'S OFFICE
                         Personal Services              1,891,818     1,891,818
                         Other Operating Expense              59,063     59,063
                 GOVERNOR'S RESIDENCE
                         Total Operating Expense              115,207     115,207
                 GOVERNOR'S CONTINGENCY FUND
                         Total Operating Expense                        11,850
    
             Direct disbursements from the above contingency fund are not subject to the provisions
             of IC 5-22.
    
                 GOVERNOR'S FELLOWSHIP PROGRAM
                         Total Operating Expense              167,457     167,457
    
             FOR THE WASHINGTON LIAISON OFFICE
                         Total Operating Expense              36,781     36,781
    
             FOR THE LIEUTENANT GOVERNOR
                         Personal Services              1,535,765     1,535,765
                         Other Operating Expense              398,262     398,262
                 CONTINGENCY FUND
                         Total Operating Expense                        10,530
    
             Direct disbursements from the above contingency fund are not subject to the provisions
             of IC 5-22.
    
             FOR THE SECRETARY OF STATE
                 ADMINISTRATION
                         Personal Services              1,632,839     1,632,839
                         Other Operating Expense              176,410     176,410
    
             FOR THE ATTORNEY GENERAL
                 ATTORNEY GENERAL
                         From the General Fund
                             13,529,845     13,529,845
                         From the Homeowner Protection Unit (IC 4-6-12-9)
                             67,252     67,252
                         Augmentation allowed.
                         From the Medicaid Fraud Control Unit Fund (IC 4-6-10)
                             488,078     488,078
                         Augmentation allowed.
                         From the Unclaimed Property Litigation
                             116,000     116,000
                         Augmentation allowed.
                         From the Consumer Fees and Settlements Fund
                             665,682     665,682
                         Augmentation allowed.
                         From the Real Estate Appraiser Investigative Fund (IC 25-34.1-8-7.5)
                             70,132     70,132
                         Augmentation allowed.
                         From the Telephone Solicitation Fund (IC 24-4.7-3-6)
                             215,682     215,682
                         Augmentation allowed.
                         From the Non-Consumer Settlements Fund
                             216,680     216,680
                         Augmentation allowed.
                         From the Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                             497,494     497,494
                         Augmentation allowed.
                         From the Abandoned Property Fund (IC 32-34-1-33)
                             390,662     390,662
                         Augmentation allowed.
    
             The amounts specified from the General Fund, homeowner protection unit, medicaid
             fraud control unit fund, unclaimed property litigation, consumer fees and settlements
             fund, real estate appraiser investigative fund, telephone solicitation fund, non-consumer
             settlements fund, tobacco master settlement agreement fund, and abandoned property
             fund are for the following purposes:
    
                         Personal Services              15,126,721     15,136,148
                         Other Operating Expense              1,130,786     1,121,359
    
                 HOMEOWNER PROTECTION UNIT
                     Homeowner Protection Unit Account (IC 4-6-12-9)
                         Total Operating Expense              1,668,644     1,668,644
                 MEDICAID FRAUD UNIT
                         Total Operating Expense              829,789     829,789
    
             The above appropriations to the Medicaid fraud unit are the state's matching share
             of funding for the state Medicaid fraud control unit under IC 4-6-10 as prescribed
             by 42 U.S.C. 1396b(q). Augmentation allowed from collections.
    
                 UNCLAIMED PROPERTY
                     Abandoned Property Fund (IC 32-34-1-33)
                         Personal Services              1,171,950     1,171,950
                         Other Operating Expense              3,230,452     3,230,452
                     Augmentation allowed.
             CONSUMER ASSISTANCE PROTECTION PROGRAM
                     Protection Assistance Fund (IC 24-10)
                         Total Operating Expense              1     1
                     Augmentation allowed.

         D. FINANCIAL MANAGEMENT

             FOR THE AUDITOR OF STATE
                         Personal Services              3,906,887     3,906,887
                         Other Operating Expense              1,180,338     1,180,338
                 GOVERNORS' AND GOVERNORS' SURVIVING SPOUSES' PENSIONS
                         Total Operating Expense              156,428     156,428
    
             The above appropriations for governors' and governors' surviving spouses' pensions
             are made under IC 4-3-3.
    
             FOR THE STATE BOARD OF ACCOUNTS
                         Personal Services              17,960,445     17,960,445
                         Other Operating Expense              535,718     535,718
                 GOVERNOR ELECT
                         Total Operating Expense              0     40,000
    
             FOR THE STATE BUDGET COMMITTEE
                         Total Operating Expense              46,007     46,007
    
             Notwithstanding IC 4-12-1-11(b), the salary per diem of the legislative members of
             the budget committee is an amount equal to one hundred fifty percent (150%) of the
             legislative business per diem allowance. If the above appropriations are insufficient
             to carry out the necessary operations of the budget committee, there are hereby
             appropriated such further sums as may be necessary.
    
             FOR THE OFFICE OF MANAGEMENT AND BUDGET
                         Personal Services              896,949     896,949
                         Other Operating Expense              83,375     83,375
    
             FOR THE STATE BUDGET AGENCY
                         Personal Services              2,358,520     2,358,520
                         Other Operating Expense              504,395     504,395
    
             The agency may establish an internal service fund to perform central accounting
             operations.
    
                 DEPARTMENTAL AND INSTITUTIONAL EMERGENCY CONTINGENCY FUND
                         Total Operating Expense                        2,000,000
    
             The foregoing departmental and institutional emergency contingency fund appropriation


             is subject to allotment to departments, institutions, and all state agencies by the budget
             agency with the approval of the governor. These allocations may be made upon written
             request of proper officials, showing that contingencies exist that require additional
             funds for meeting necessary expenses. The budget committee shall be advised of each
             transfer request and allotment.

                 OUTSIDE BILL CONTINGENCY
                         Total Operating Expense                        5,000,000

                 PERSONAL SERVICES/FRINGE BENEFITS CONTINGENCY FUND
                         Total Operating Expense                        89,000,000

             The foregoing personal services/fringe benefits contingency fund appropriation is
             subject to allotment to departments, institutions, and all state agencies by the budget
             agency with the approval of the governor.
    
             The foregoing personal services/fringe benefits contingency fund appropriation may
             be used only for salary increases, fringe benefit increases, an employee leave conversion
             program, or a state retiree health program for state employees and may not be used for
             any other purpose.
    
             The foregoing personal services/fringe benefits contingency fund appropriation does
             not revert at the end of the biennium but remains in the personal services/fringe
             benefits contingency fund.
    
                 RETIREE HEALTH BENEFIT TRUST FUND
                     Retiree Health Benefit Trust Fund (IC 5-10-8-8.5)
                         Total Operating Expense                        42,400,000
                     Augmentation Allowed.
    
             The foregoing appropriation for the retiree health plan:
                 (1) is to fund employer contributions and benefits provided under IC 5-10-8.5;
                 (2) does not revert at the end of any state fiscal year but remains available for
                 the purposes of the appropriation in subsequent state fiscal years; and
                 (3) is not subject to transfer to any other fund or to transfer, assignment,
                 or reassignment for any other use or purpose by the state board of finance
                 notwithstanding IC 4-9.1-1-7 and IC 4-13-2-23 or by the budget agency
                 notwithstanding IC 4-12-1-12 or any other law.
    
             The budget agency may transfer appropriations from federal or dedicated funds to
             the trust fund to accrue funds to pay benefits to employees that are not paid from the
             general fund.
    
                 COMPREHENSIVE HEALTH INSURANCE ASSOCIATION STATE SHARE
                         Total Operating Expense                        97,700,000


                     Augmentation Allowed.
    
                 SCHOOL AND LIBRARY INTERNET CONNECTION (IC 4-34-3-2)
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              2,650,000     2,650,000
    
                 Of the foregoing appropriations, $1,800,000 each year shall be used for schools under
             IC 4-34-3-4, and $850,000 each year shall be used for libraries under IC 4-34-3-2.

                 INSPIRE (IC 4-34-3-2)
                     Build Indiana Fund (IC 4-30-17)
                         Other Operating Expense                        2,850,000

             FOR THE PUBLIC EMPLOYEES' RETIREMENT FUND
                 PUBLIC SAFETY PENSION
                         Total Operating Expense              131,000,000     180,000,000
                     Augmentation Allowed.
    
             FOR THE TREASURER OF STATE
                         Personal Services              744,980     744,980
                         Other Operating Expense              38,115     38,115
    
             The treasurer of state, the board for depositories, the Indiana commission for higher
             education, and the state student assistance commission shall cooperate and provide
             to the Indiana education savings authority the following:
                 (1) Clerical and professional staff and related support.
                 (2) Office space and services.
                 (3) Reasonable financial support for the development of rules, policies,
                 programs, and guidelines, including authority operations and travel.
    
             E. TAX ADMINISTRATION
    
             FOR THE DEPARTMENT OF REVENUE
                 COLLECTION AND ADMINISTRATION
                     From the General Fund
                             45,845,804     45,845,804
                     From the Motor Carrier Regulation Fund (IC 8-2.1-23)
                             752,284     752,284
                     From the Motor Vehicle Highway Account (IC 8-14-1)
                             2,319,981     2,319,981
                     Augmentation allowed from the Motor Carrier Regulation Fund and the Motor
                     Vehicle Highway Account.
    
                     The amounts specified from the General Fund, Motor Carrier Regulation Fund,
                     and the Motor Vehicle Highway Account are for the following purposes:


    
                         Personal Services              34,536,465     34,536,465
                         Other Operating Expense              14,381,604     14,381,604
    
             With the approval of the governor and the budget agency, the department shall annually
             reimburse the state general fund for expenses incurred in support of the collection of
             dedicated fund revenue according to the department's cost allocation plan.
    
             With the approval of the governor and the budget agency, the foregoing sums for the
             department of state revenue may be augmented to an amount not exceeding in total,
             together with the above specific amounts, one and one-tenth percent (1.1%) of the
             amount of money collected by the department of state revenue from taxes and fees.

                 OUTSIDE COLLECTIONS
                         Total Operating Expense              4,500,000     4,500,000

             With the approval of the governor and the budget agency, the foregoing sums for the
             department of state revenue's outside collections may be augmented to an amount not
             exceeding in total, together with the above specific amounts, one and one-tenth percent
             (1.1%) of the amount of money collected by the department from taxes and fees.
    
                 MOTOR CARRIER REGULATION
                     Motor Carrier Regulation Fund (IC 8-2.1-23)
                         Personal Services              1,591,561     1,591,561
                         Other Operating Expense              2,619,734     2,619,734
                     Augmentation allowed from the Motor Carrier Regulation Fund.
    
                 MOTOR FUEL TAX DIVISION
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Personal Services              6,624,160     6,624,160
                         Other Operating Expense              738,777     738,777
                     Augmentation allowed from the Motor Vehicle Highway Account.
    
             In addition to the foregoing appropriations, there is hereby appropriated to the
             department of revenue motor fuel tax division an amount sufficient to pay claims
             for refunds on license-fee-exempt motor vehicle fuel as provided by law. The sums
             above appropriated from the motor vehicle highway account for the operation of the
             motor fuel tax division, together with all refunds for license-fee-exempt motor vehicle
             fuel, shall be paid from the receipts of those license fees before they are distributed
             as provided by IC 6-6-1.1.
    
             FOR THE INDIANA GAMING COMMISSION
                     From the State Gaming Fund (IC 4-33-13-3)
                             2,883,092     2,883,092
                     From the Gaming Investigations Fund (IC 4-33-4.5)


                             600,000     600,000
    
                     The amounts specified from the state gaming fund and gaming investigations fund
                     are for the following purposes:
    
                         Personal Services              2,961,359     2,961,359
                         Other Operating Expense              521,733     521,733
    
             The foregoing appropriations to the Indiana gaming commission are made from revenues
             accruing to the state gaming fund under IC 4-33-13-3 before any distribution is made
             under IC 4-33-13-5.
                     Augmentation allowed.
    
             The foregoing appropriations to the Indiana gaming commission are made instead of
             the appropriation made in IC 4-33-13-4.

             FOR THE INDIANA DEPARTMENT OF GAMING RESEARCH
                         Personal Services              86,841     86,841
                         Other Operating Expense              104,158     104,158
                     Augmentation allowed from fees accruing under IC 4-33-18-8.

             FOR THE INDIANA HORSE RACING COMMISSION
                     Indiana Horse Racing Commission Operating Fund (IC 4-31-10-2)
                         Personal Services              1,951,137     1,951,137
                         Other Operating Expense              282,499     282,499
    
             The foregoing appropriations to the Indiana horse racing commission are made from
             revenues accruing to the Indiana horse racing commission before any distribution
             is made under IC 4-31-9.
                     Augmentation allowed.
    
                 STANDARDBRED ADVISORY BOARD
                     Standardbred Horse Fund (IC 15-19-2-10)
                         Total Operating Expense              193,500     193,500
    
             The foregoing appropriations to the standardbred advisory board are made from
             revenues accruing to the Indiana horse racing commission before any distribution
             is made under IC 4-31-9.
                     Augmentation allowed.
    
                 STANDARDBRED BREED DEVELOPMENT
                     Indiana Horse Racing Commission Operating Fund (IC 4-31-10-2)
                         Total Operating Expense              11,917,000     11,150,000
                     Augmentation allowed.
                 THOROUGHBRED BREED DEVELOPMENT


                     Indiana Horse Racing Commission Operating Fund (IC 4-31-10-2)
                         Total Operating Expense              9,934,000     9,320,000
                     Augmentation allowed.
                 QUARTER HORSE BREED DEVELOPMENT
                     Indiana Horse Racing Commission Operating Fund (IC 4-31-10-2)
                         Total Operating Expense              1,295,000     1,215,000
                     Augmentation allowed.
                 FINGERPRINT FEES
                     Indiana Horse Racing Commission Operating Fund (IC 4-31-10-2)
                         Total Operating Expense              72,144     72,144
                     Augmentation allowed.
                 GAMING INTEGRITY FUND - IHRC
                     Gaming Integrity Fund - IHRC (IC 4-35-8.7-3)
                         Total Operating Expense              1,000,000     1,000,000
                     Augmentation allowed.
    
             FOR THE INDIANA STATE FAIR
                     Indiana Horse Racing Commission Operating Fund (IC 4-31-10-2)
                         Total Operating Expense              1,000,000     1,000,000

             The above appropriation is for the support of harness racing at the state fair and
             $250,000 for county fairs.

             FOR THE DEPARTMENT OF LOCAL GOVERNMENT FINANCE
                         Personal Services              2,993,946     2,993,946
                         Other Operating Expense              867,399     867,399

             FOR THE INDIANA BOARD OF TAX REVIEW
                         Personal Services              1,056,898     1,056,898
                         Other Operating Expense              61,689     61,689
                     
             F. ADMINISTRATION
    
             FOR THE DEPARTMENT OF ADMINISTRATION
                         Personal Services              8,739,579     8,739,579
                         Other Operating Expense              15,871,101     15,871,101
    
             FOR THE STATE PERSONNEL DEPARTMENT
                         Personal Services              2,933,745     2,933,745
                         Other Operating Expense              233,258     233,258
    
             The department may establish an internal service fund to perform the functions of the
             department.
    
             FOR THE STATE EMPLOYEES APPEALS COMMISSION


                         Personal Services              153,848     153,848
                         Other Operating Expense              10,435     10,435
    
             FOR THE OFFICE OF TECHNOLOGY
                     Pay Phone Fund
                         Total Operating Expense              1,600,000     1,600,000
                     Augmentation allowed.
    
             The pay phone fund is established for the procurement of hardware, software, and
             related equipment and services needed to expand and enhance the state campus backbone
             and other central information technology initiatives. Such procurements may include,
             but are not limited to, wiring and rewiring of state offices, Internet services, video
             conferencing, telecommunications, application software, and related services.
             Notwithstanding IC 5-22-23-5, the fund consists of the net proceeds received from
             contracts with companies providing phone services at state institutions and other
             state properties. The fund shall be administered by the budget agency. Money in
             the fund may be spent by the office in compliance with a plan approved by the budget
             agency. Any money remaining in the fund at the end of any fiscal year does not revert
             to the general fund or any other fund but remains in the pay phone fund.
    
             FOR THE COMMISSION ON PUBLIC RECORDS
                         Personal Services              1,297,667     1,297,667
                         Other Operating Expense              91,837     91,837
    
             FOR THE OFFICE OF THE PUBLIC ACCESS COUNSELOR
                         Personal Services              135,937     135,937
                         Other Operating Expense              2,652     2,652
    
             FOR THE OFFICE OF FEDERAL GRANTS AND PROCUREMENT
                         Total Operating Expense              82,578     82,578
    
             G. OTHER
    
             FOR THE COMMISSION ON UNIFORM STATE LAWS
                         Total Operating Expense              43,584     43,584
    
             FOR THE OFFICE OF INSPECTOR GENERAL
                         Personal Services              1,136,347     1,136,347
                         Other Operating Expense              89,790     89,790
    
                 STATE ETHICS COMMISSION
                         Personal Services              200     200
                         Other Operating Expense              6,100     6,100
    
             FOR THE SECRETARY OF STATE
                 ELECTION DIVISION
                         Personal Services              757,218     757,218
                         Other Operating Expense              140,534     140,534
                 VOTER LIST MAINTENANCE
                         Total Operating Expense              1,000,000     1,000,000
    
             The above appropriation includes state HAVA matching funds.
    
             H. COMMUNITY SERVICES
    
             FOR THE GOVERNOR'S OFFICE OF FAITH BASED AND COMMUNITY INITIATIVES
                         Personal Services              169,611     169,611
                         Other Operating Expense              77,358     77,358
    
         SECTION 4. [EFFECTIVE JULY 1, 2011]
    
             PUBLIC SAFETY
    
             A. CORRECTION
    
             FOR THE DEPARTMENT OF CORRECTION
                 CENTRAL OFFICE
                         Personal Services              8,796,428     8,796,428
                         Other Operating Expense              8,924,840     9,124,840
                 ESCAPEE COUNSEL AND TRIAL EXPENSE
                         Other Operating Expense              300,000     300,000
                 COUNTY JAIL MISDEMEANANT HOUSING
                         Total Operating Expense              4,281,071     4,281,071
                 ADULT CONTRACT BEDS
                         Total Operating Expense              7,622,125     7,622,125
                 STAFF DEVELOPMENT AND TRAINING
                         Personal Services              863,181     863,181
                         Other Operating Expense              97,785     97,785
                 PAROLE DIVISION
                         Personal Services              8,418,932     8,418,932
                         Other Operating Expense              803,544     803,544
                 PAROLE BOARD
                         Personal Services              631,427     631,427
                         Other Operating Expense              23,000     23,000
                 INFORMATION MANAGEMENT SERVICES
                         Personal Services              644,815     644,815
                         Other Operating Expense              380,185     380,185
                 JUVENILE TRANSITION
                         Personal Services              647,819     647,819
                         Other Operating Expense              1,079,981     1,079,981
                 COMMUNITY CORRECTIONS PROGRAMS
                         Total Operating Expense              34,018,114     34,018,114
    
             The above appropriation for community corrections programs is not subject to transfer
             to any other fund or to transfer, assignment, or reassignment for any other use or
             purpose by the state board of finance notwithstanding IC 4-9.1-1-7 and IC 4-13-2-23
             or by the budget agency notwithstanding IC 4-12-1-12 or any other law.
    
             Notwithstanding IC 4-13-2-19 and any other law, the above appropriation for community
             corrections programs does not revert to the general fund or another fund at the close
             of a state fiscal year but remains available in subsequent state fiscal years for the
             purposes of the appropriation.
    
                 DRUG PREVENTION AND OFFENDER TRANSITION
                         Total Operating Expense              122,945     122,945
    
             The above appropriation shall be used for minimum security release programs, transition
             programs, mentoring programs, and supervision of and assistance to adult and juvenile
             offenders to promote the successful integration of the offender into the community.
    
                 YOUTH SERVICES TRANSITIONAL SERVICES PROGRAM
                     Youth Services Transitional Services Fund (IC 11-10-2-11)
                         Total Operating Expense              1     1
                     Augmentation allowed.
                 CENTRAL EMERGENCY RESPONSE
                         Personal Services              651,931     651,931
                         Other Operating Expense              94,841     94,841
                 MEDICAL SERVICES
                         Other Operating Expense              77,263,235     81,581,396
    
             The above appropriations for medical services shall be used only for services that
             are determined to be medically necessary.

                 DRUG ABUSE PREVENTION
                     Drug Abuse Fund (IC 11-8-2-11)
                         Total Operating Expense              150,000     150,000

                 Augmentation allowed.
             COUNTY JAIL MAINTENANCE CONTINGENCY FUND
                         Other Operating Expense              24,515,225     24,515,225
    
             Disbursements from the fund shall be made for the purpose of reimbursing sheriffs
             for the cost of incarcerating in county jails persons convicted of felonies to the
             extent that such persons are incarcerated for more than five (5) days after the
             day of sentencing or the date upon which the department of correction receives the


             abstract of judgment and sentencing order, whichever occurs later, at a rate to
             be determined by the department of correction and approved by the state budget agency.
             The rate shall be based upon programming provided, and shall be $35 per day. In
             addition to the per diem, the state shall reimburse the sheriffs for expenses determined
             by the sheriff to be medically necessary medical care to the convicted persons.
             However, if the sheriff or county receives money with respect to a convicted person
             (from a source other than the county), the per diem or medical expense reimbursement
             with respect to the convicted person shall be reduced by the amount received. A
             sheriff shall not be required to comply with IC 35-38-3-4(a) or transport convicted
             persons within five (5) days after the day of sentencing if the department of correction
             does not have the capacity to receive the convicted person.
    
                     Augmentation allowed.
    
                 FOOD SERVICES
                         Total Operating Expense              37,646,381     39,241,198
                 EDUCATIONAL SERVICES
                         Other Operating Expense              9,483,219     10,483,219
    
             FOR THE STATE BUDGET AGENCY
                 MEDICAL SERVICE PAYMENTS
                         Total Operating Expense              25,000,000     25,000,000
    
             These appropriations for medical service payments are made to pay for services
             determined to be medically necessary for committed individuals, patients and
             students of institutions under the jurisdiction of the department of correction,
             the state department of health, the division of mental health and addiction, the
             school for the blind and visually impaired, the school for the deaf, the division
             of disability and rehabilitative services, or the division of aging if the services
             are provided outside these institutions. These appropriations may not be used for
             payments for medical services that are covered by IC 12-16 unless these services
             have been approved under IC 12-16. These appropriations shall not be used for
             payment for medical services which are payable from an appropriation in this act
             for the state department of health, the division of mental health and addiction, the
             school for the blind and visually impaired, the school for the deaf, the division of
             disability and rehabilitative services, the division of aging, or the department
             of correction, or that are reimbursable from funds for medical assistance under
             IC 12-15. If these appropriations are insufficient to make these medical service
             payments, there is hereby appropriated such further sums as may be necessary.
    
             Direct disbursements from the above contingency fund are not subject to the
             provisions of IC 4-13-2.

         FOR THE DEPARTMENT OF ADMINISTRATION
                 DEPARTMENT OF CORRECTION OMBUDSMAN BUREAU


                         Personal Services              130,664     130,664
                         Other Operating Expense              2,330     2,330
    
             FOR THE DEPARTMENT OF CORRECTION
                 INDIANA STATE PRISON
                         Personal Services              28,981,488     28,981,488
                         Other Operating Expense              5,683,472     5,683,472
                 PENDLETON CORRECTIONAL FACILITY
                         Personal Services              24,824,581     24,824,581
                         Other Operating Expense              6,334,262     6,334,262
                 CORRECTIONAL INDUSTRIAL FACILITY
                         Personal Services              18,553,360     18,553,360
                         Other Operating Expense              1,217,007     1,217,007
                 INDIANA WOMEN'S PRISON
                         Personal Services              7,593,390     7,593,390
                         Other Operating Expense              1,105,819     1,105,819
                 PUTNAMVILLE CORRECTIONAL FACILITY
                         Personal Services              26,805,320     26,805,320
                         Other Operating Expense              4,274,416     4,274,416
                 WABASH VALLEY CORRECTIONAL FACILITY
                         Personal Services              33,123,957     33,123,957
                         Other Operating Expense              4,173,619     4,173,619
                 INDIANAPOLIS RE-ENTRY EDUCATION FACILITY
                         Personal Services              7,774,721     7,774,721
                         Other Operating Expense              3,036,574     3,036,574
                 BRANCHVILLE CORRECTIONAL FACILITY
                         Personal Services              15,758,202     15,758,202
                         Other Operating Expense              2,801,571     2,801,571
                 WESTVILLE CORRECTIONAL FACILITY
                         Personal Services              40,012,355     40,012,355
                         Other Operating Expense              6,037,799     6,037,799
                 ROCKVILLE CORRECTIONAL FACILITY FOR WOMEN
                         Personal Services              13,240,372     13,240,372
                         Other Operating Expense              1,835,299     1,835,299
                 PLAINFIELD CORRECTIONAL FACILITY
                         Personal Services              18,676,247     18,676,247
                         Other Operating Expense              1,969,839     1,969,839
                 RECEPTION AND DIAGNOSTIC CENTER
                         Personal Services              11,479,798     11,479,798
                         Other Operating Expense              585,216     585,216
                 MIAMI CORRECTIONAL FACILITY
                         Personal Services              27,662,927     27,662,927
                         Other Operating Expense              4,578,473     4,578,473
                 NEW CASTLE CORRECTIONAL FACILITY
                         Other Operating Expense              34,150,948     34,833,967
                 TITLE XX WR - SOUTH BEND WORK RELEASE CENTER
                     General Fund
                         Total Operating Expense              1,163,599     1,163,599
                     Work Release - Study Release Special Revenue Fund (IC 11-10-8-6.5)
                         Total Operating Expense              350,000     350,000
                     Augmentation allowed from Work Release - Study Release Special Revenue Fund.
    
                 TITLE XX WR - WOMEN'S INDIANAPOLIS
                     General Fund
                         Total Operating Expense              577,664     577,664
                     Work Release - Study Release Special Revenue Fund (IC 11-10-8-6.5)
                         Total Operating Expense              350,000     350,000
                     Augmentation allowed from Work Release - Study Release Special Revenue Fund.
                 HENRYVILLE CORRECTIONAL FACILITY
                         Personal Services              2,251,837     2,251,837
                         Other Operating Expense              267,720     267,720
                 CHAIN O' LAKES CORRECTIONAL FACILITY
                         Personal Services              2,002,308     2,002,308
                         Other Operating Expense              269,366     269,366
                 MADISON CORRECTIONAL FACILITY
                         Personal Services              6,319,714     6,319,714
                         Other Operating Expense              961,836     961,836
                 EDINBURGH CORRECTIONAL FACILITY
                         Personal Services              3,476,501     3,476,501
                         Other Operating Expense              346,447     346,447
                 SOUTH BEND JUVENILE CORRECTIONAL FACILITY
                         Personal Services              4,578,978     4,578,978
                         Other Operating Expense              2,561,289     2,561,289
                 NORTH CENTRAL JUVENILE CORRECTIONAL FACILITY
                         Personal Services              9,673,791     9,673,791
                         Other Operating Expense              1,162,858     1,162,858
                 CAMP SUMMIT
                         Personal Services              3,452,379     3,452,379
                         Other Operating Expense              180,255     180,255
                 PENDLETON JUVENILE CORRECTIONAL FACILITY
                         Personal Services              14,334,347     14,334,347
                         Other Operating Expense              1,191,866     1,191,866
                 MADISON JUVENILE CORRECTIONAL FACILITY
                         Personal Services              4,847,257     4,847,257
                         Other Operating Expense              417,141     417,141
    
             B. LAW ENFORCEMENT
    
         FOR THE INDIANA STATE POLICE AND MOTOR CARRIER INSPECTION
                 From the General Fund
                         43,999,585    43,999,585
                 From the Motor Vehicle Highway Account (IC 8-14-1)
                         76,487,626    76,487,626
                 From the Motor Carrier Regulation Fund (IC 8-2.1-23)
                         4,235,471    4,235,471
                 Augmentation allowed from the general fund, the motor vehicle highway account,
                 and the motor carrier regulation fund.
    
             The amounts specified from the General Fund, the Motor Vehicle Highway Account,
             and the Motor Carrier Regulation Fund are for the following purposes:
    
                         Personal Services              103,652,441     103,652,441
                         Other Operating Expense              21,070,241     21,070,241
    
             The above appropriations for personal services and other operating expense include
             funds to continue the state police minority recruiting program.
    
             The foregoing appropriations for the Indiana state police and motor carrier inspection
             include funds for the police security detail to be provided to the Indiana state fair
             board. However, amounts actually expended to provide security for the Indiana state
             fair board as determined by the budget agency shall be reimbursed by the Indiana
             state fair board to the state general fund.
    
                 INDIANA INTELLIGENCE FUSION CENTER
                         Total Operating Expense              823,864     823,864
                 ODOMETER FRAUD INVESTIGATION
                     Motor Vehicle Odometer Fund (IC 9-29-1-5)
                         Total Operating Expense              50,000     50,000
                     Augmentation allowed.
    
                 STATE POLICE TRAINING
                     State Police Training Fund (IC 5-2-8-5)
                         Total Operating Expense              500,698     500,698
                     Augmentation allowed.
    
                 FORENSIC AND HEALTH SCIENCES LABORATORIES
                     From the General Fund
                             3,616,706     3,616,706
                     From the Motor Carrier Regulation Fund (IC 8-2.1-23)
                             349,341     349,341
                     From the Motor Vehicle Highway Account (IC 8-14-1)
                             6,308,687     6,308,687
                     Augmentation allowed from the general fund, the motor vehicle highway account,
                     and the motor carrier regulation fund.
    
             The amounts specified from the General Fund, the Motor Vehicle Highway Account,
             and the Motor Carrier Regulation Fund are for the following purposes:

                         Personal Services              9,677,503     9,677,503
                         Other Operating Expense              597,231     597,231

                 ENFORCEMENT AID
                     General Fund
                         Total Operating Expense              38,536     38,536
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              38,537     38,537
    
             The above appropriations for enforcement aid are to meet unforeseen emergencies of a
             confidential nature. They are to be expended under the direction of the superintendent
             and to be accounted for solely on the superintendent's authority.
    
                 PENSION FUND
                     General Fund
                         Total Operating Expense              6,184,606     6,184,606
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              6,184,608     6,184,608
    
             The above appropriations shall be paid into the state police pension fund provided for
             in IC 10-12-2 in twelve (12) equal installments on or before July 30 and on or before
             the 30th of each succeeding month thereafter.
    
                 BENEFIT FUND
                     General Fund
                         Total Operating Expense              1,713,151     1,713,151
                     Augmentation allowed.
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              1,713,151     1,713,151
                     Augmentation allowed.
    
             All benefits to members shall be paid by warrant drawn on the treasurer of state
             by the auditor of state on the basis of claims filed and approved by the trustees
             of the state police pension and benefit funds created by IC 10-12-2.
    
                 SUPPLEMENTAL PENSION
                     General Fund
                         Total Operating Expense              2,171,723     2,171,723
                     Augmentation allowed.
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              2,171,723     2,171,723
                     Augmentation allowed.


    
             If the above appropriations for supplemental pension for any one (1) year are greater
             than the amount actually required under the provisions of IC 10-12-5, then the excess
             shall be returned proportionately to the funds from which the appropriations were
             made. If the amount actually required under IC 10-12-5 is greater than the above
             appropriations, then, with the approval of the governor and the budget agency, those
             sums may be augmented from the general fund and the motor vehicle highway account.

                 ACCIDENT REPORTING
                      Accident Report Account (IC 9-29-11-1)
                         Total Operating Expense              25,500     25,500
                     Augmentation allowed.
                 DRUG INTERDICTION
                     Drug Interdiction Fund (IC 10-11-7)
                         Total Operating Expense              215,000     215,000
                     Augmentation allowed.
                 DNA SAMPLE PROCESSING FUND
                     DNA Sample Processing Fund (IC 10-13-6-9.5)
                         Total Operating Expense              1,327,777     1,327,777
                     Augmentation allowed.
                 AUTOMATED FINGERPRINT IDENTIFICATION SYSTEM
                     Fingerprint Identification Fund (IC 10-13-3-28)
                         Total Operating Expense              1     1
                     Augmentation allowed.
    
             FOR THE INTEGRATED PUBLIC SAFETY COMMISSION
                 PROJECT SAFE-T
                     Integrated Public Safety Communications Fund (IC 5-26-4-1)
                         Total Operating Expense              12,042,700     12,042,700
                     Augmentation allowed.
    
             FOR THE ADJUTANT GENERAL
                         Personal Services              5,114,386     5,114,386
                         Other Operating Expense              3,666,380     3,666,380
                 CAMP ATTERBURY MUSCATATUCK CENTER FOR COMPLEX OPERATIONS
                         Personal Services              543,775     543,775
                         Other Operating Expense              319,476     319,476
                 DISABLED SOLDIERS' PENSION
                         Total Operating Expense              1     1
                     Augmentation allowed.
                 MUTC - MUSCATATUCK URBAN TRAINING CENTER
                         Total Operating Expense              1,178,870     1,178,870
                 HOOSIER YOUTH CHALLENGE ACADEMY
                     General Fund
                         Total Operating Expense              1,800,000     1,800,000


                     State Armory Board Fund (IC 10-16-3-2)
                         Total Operating Expense              300,000     300,000
                     Augmentation allowed.
                 GOVERNOR'S CIVIL AND MILITARY CONTINGENCY FUND
                         Total Operating Expense                        245,370
    
             The above appropriations for the governor's civil and military contingency fund are
             made under IC 10-16-11-1.
    
             FOR THE CRIMINAL JUSTICE INSTITUTE
                 ADMINISTRATIVE MATCH
                         Total Operating Expense              427,253     427,253
                 DRUG ENFORCEMENT MATCH
                         Total Operating Expense              1,003,664     1,003,664

         To facilitate the duties of the Indiana criminal justice institute as outlined in
         IC 5-2-6-3, the above appropriation is not subject to the provisions of IC 4-9.1-1-7
         when used to support other state agencies through the awarding of state match dollars.

                 SSBG - CRIMINAL JUSTICE INSTITUTE
                         Total Operating Expense              636,763     636,763
                 VICTIM AND WITNESS ASSISTANCE FUND
                     Victim and Witness Assistance Fund (IC 5-2-6-14)
                         Total Operating Expense              798,828     798,828
                     Augmentation allowed.
                 ALCOHOL AND DRUG COUNTERMEASURES
                     Alcohol and Drug Countermeasures Fund (IC 9-27-2-11)
                         Total Operating Expense              348,211     348,211
                     Augmentation allowed.
                 STATE DRUG FREE COMMUNITIES FUND
                     State Drug Free Communities Fund (IC 5-2-10-2)
                         Total Operating Expense              526,585     526,585
                     Augmentation allowed.
                 INDIANA SAFE SCHOOLS
                     General Fund
                         Total Operating Expense              1,129,216     1,129,216
                     Indiana Safe Schools Fund (IC 5-2-10.1-2)
                         Total Operating Expense              692,100     692,100
                     Augmentation allowed from Indiana Safe Schools Fund.
    
             Of the above appropriations for the Indiana safe schools program, $1,071,316 is
             appropriated annually to provide grants to school corporations for school safe haven
             programs, emergency preparedness programs, and school safety programs, and
             $750,000 is appropriated annually for use in providing training to school safety
             specialists.


    
                 CHILD RESTRAINT SYSTEM FUND
                     Child Restraint System Account (IC 9-19-11-9)
                         Total Operating Expense              100,000     100,000
                 COMMUNITY DRIVER TRAINING SCHOOLS & INSTRUCTION
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              63,675     63,675
                     Augmentation allowed.
                 OFFICE OF TRAFFIC SAFETY
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              523,333     523,333
                     Augmentation allowed.
    
             The above appropriation for the office of traffic safety is from the motor vehicle
             highway account and may be used to cover the state match requirement for this
             program according to the current highway safety plan approved by the governor
             and the budget agency.

             SEXUAL ASSAULT VICTIMS' ASSISTANCE
                     Sexual Assault Victims' Assistance Account (IC 5-2-6-23(h))
                         Total Operating Expense              49,000     49,000

             Augmentation allowed. The full amount of the above appropriations shall be distributed
             to rape crisis centers in Indiana without any deduction of personal services or other
             operating expenses of any state agency.
    
                 VICTIMS OF VIOLENT CRIME ADMINISTRATION
                      Violent Crime Victims Compensation Fund (IC 5-2-6.1-40)
                         Personal Services              61,586     61,586
                         Other Operating Expense              2,500,414     2,500,414
                     Augmentation allowed.
                 DOMESTIC VIOLENCE PREVENTION AND TREATMENT
                     General Fund
                         Total Operating Expense              1,097,252     1,097,252
                     Social Services Block Grant
                         Total Operating Expense              636,672     636,672
                     Domestic Violence Prevention and Treatment Fund (IC 5-2-6.7-4)
                         Total Operating Expense              1,115,590     1,115,590
                     Augmentation allowed.
    
             FOR THE DEPARTMENT OF TOXICOLOGY
                         Total Operating Expense              2,093,873     2,093,873
    
             FOR THE CORONERS TRAINING BOARD
                     Coroners Training and Continuing Education Fund (IC 4-23-6.5-8)


                         Total Operating Expense              400,000     400,000
                     Augmentation allowed.
    
             FOR THE LAW ENFORCEMENT TRAINING ACADEMY
                     From the General Fund
                             1,862,289     1,862,289
                      From the Law Enforcement Training Fund (IC 5-2-1-13(b))
                             2,220,052     2,220,052
                     Augmentation allowed from the Law Enforcement Training Fund.
    
             The amounts specified from the General Fund and the Law Enforcement Training Fund
             are for the following purposes:
    
                         Personal Services              3,026,606     3,026,606
                         Other Operating Expense              1,055,735     1,055,735
    
             C. REGULATORY AND LICENSING
    
             FOR THE BUREAU OF MOTOR VEHICLES
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Personal Services              15,143,709     15,143,709
                         Other Operating Expense              15,795,694     15,795,694
                     Augmentation allowed.
                 LICENSE PLATES
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              9,210,000     14,059,500
                     Augmentation allowed.
                 FINANCIAL RESPONSIBILITY COMPLIANCE VERIFICATION
                     Financial Responsibility Compliance Verification Fund (IC 9-25-9-7)
                         Total Operating Expense              6,571,932     6,571,932
                     Augmentation allowed.
                 STATE MOTOR VEHICLE TECHNOLOGY
                     State Motor Vehicle Technology Fund (IC 9-29-16-1)
                         Total Operating Expense              5,261,692     5,261,692
                     Augmentation allowed.
                 MOTORCYCLE OPERATOR SAFETY EDUCATION PROGRAM
                     Motorcycle Operator Safety Education Fund (IC 9-27-7-7)
                         Total Operating Expense              1     1
                     Augmentation allowed.
    
             FOR THE DEPARTMENT OF LABOR
                         Personal Services              700,954     700,954
                         Other Operating Expense              77,241     77,241
                 BUREAU OF MINES AND MINING
                         Personal Services              92,074     157,130
                         Other Operating Expense              17,692     24,542
                 M.I.S. RESEARCH AND STATISTICS
                         Total Operating Expense              98,663     98,663
                 OCCUPATIONAL SAFETY AND HEALTH
                         Total Operating Expense              1,920,000     1,920,000
    
             The above appropriations for occupational safety and health and M.I.S. research and
             statistics reflect only the general fund portion of the total program costs of the
             Indiana occupational safety and health plan as approved by the U.S. Department of
             Labor. It is the intention of the General Assembly that the Indiana department of
             labor make application to the federal government for the federal share of the total
             program costs.
    
                 EMPLOYMENT OF YOUTH
                     Employment of Youth Fund (IC 20-33-3-42)
                         Total Operating Expense              167,826     167,826
                     Augmentation allowed.
                 INSAFE
                     Special Fund for Safety and Health Consultation Services (IC 22-8-1.1-48)
                         Total Operating Expense              182,206     182,206
                     Augmentation allowed.
    
             FOR THE DEPARTMENT OF INSURANCE
                     Department of Insurance Fund (IC 27-1-3-28)
                         Personal Services              4,524,795     4,524,795
                         Other Operating Expense              1,011,813     1,011,813
                     Augmentation allowed.
                 BAIL BOND DIVISION
                     Bail Bond Enforcement and Administration Fund (IC 27-10-5-1)
                         Personal Services              178,008     178,008
                         Other Operating Expense              2,421     2,421
                     Augmentation allowed.
                 PATIENT'S COMPENSATION AUTHORITY
                     Patient's Compensation Fund (IC 34-18-6-1)
                         Personal Services              560,123     560,123
                         Other Operating Expense              1,001,331     1,001,331
                     Augmentation allowed.
                 POLITICAL SUBDIVISION RISK MANAGEMENT
                     Political Subdivision Risk Management Fund (IC 27-1-29-10)
                         Personal Services              7,200     7,200
                         Other Operating Expense              61,814     61,814
                     Augmentation allowed.
                 MINE SUBSIDENCE INSURANCE
                     Mine Subsidence Insurance Fund (IC 27-7-9-7)
                         Personal Services              43,271     43,271
                         Other Operating Expense              630,260     630,260
                     Augmentation allowed.
                 TITLE INSURANCE ENFORCEMENT OPERATING
                     Title Insurance Enforcement Fund (IC 27-7-3.6-1)
                         Personal Services              321,355     321,355
                         Other Operating Expense              47,936     47,936
                     Augmentation allowed.
    
             FOR THE ALCOHOL AND TOBACCO COMMISSION
                     Enforcement and Administration Fund (IC 7.1-4-10-1)
                         Personal Services              8,536,701     8,536,701
                         Other Operating Expense              1,470,857     1,470,857
                     Augmentation allowed.
    
                 ALCOHOLIC BEVERAGE ENFORCEMENT OFFICERS' TRAINING
                     Alcoholic Beverage Enforcement Officers' Training Fund (IC 5-2-8-8)
                         Total Operating Expense              1,645     1,645
                     Augmentation allowed.
                 YOUTH TOBACCO EDUCATION AND ENFORCEMENT
                     Youth Tobacco Education and Enforcement Fund (IC 7.1-6-2-6)
                         Total Operating Expense              147,000     147,000
                     Augmentation allowed.
    
             FOR THE DEPARTMENT OF FINANCIAL INSTITUTIONS
                     Financial Institutions Fund (IC 28-11-2-9)
                         Personal Services              6,273,866     6,273,866
                     Other Operating Expense              1,368,083     1,408,083
                 Augmentation allowed.

             FOR THE PROFESSIONAL LICENSING AGENCY
                         Personal Services              4,456,461     4,456,461
                         Other Operating Expense              526,517     526,517
                 PRENEED CONSUMER PROTECTION
                     Preneed Consumer Protection Fund (IC 30-2-13-28)
                         Total Operating Expense              50,000     50,000
                     Augmentation allowed.
                 BOARD OF FUNERAL AND CEMETERY SERVICE
                     Funeral Service Education Fund (IC 25-15-9-13)
                         Total Operating Expense              4,250     4,250
                     Augmentation allowed.
                 DENTAL PROFESSION INVESTIGATION AND ENFORCEMENT
                     Dental Compliance Fund (IC 25-14-1-3.7)
                         Total Operating Expense              1     1
                     Augmentation allowed.
                 PHYSICIAN INVESTIGATION AND ENFORCEMENT


                     Physician Compliance Fund (IC 25-22.5-2-8)
                         Total Operating Expense              1     1
                     Augmentation allowed.
    
             FOR THE CIVIL RIGHTS COMMISSION
                         Personal Services              1,651,850     1,651,850
                         Other Operating Expense              207,036     207,036
    
             The above appropriation for the Indiana civil rights commission reflects only the
             general fund portion of the total program costs for the processing of employment
             and housing discrimination complaints. It is the intention of the General Assembly
             that the commission make application to the federal government for funding based
             upon the processing of employment and housing discrimination complaints.
    
                 MARTIN LUTHER KING JR. HOLIDAY COMMISSION
                         Total Operating Expense              20,000     20,000
    
             FOR THE UTILITY CONSUMER COUNSELOR
                     Public Utility Fund (IC 8-1-6-1)
                         Personal Services              4,705,037     4,705,037
                         Other Operating Expense              718,125     720,831
                     Augmentation allowed.
    
                 EXPERT WITNESS FEES AND AUDIT
                     Public Utility Fund (IC 8-1-6-1)
                         Total Operating Expense                        1,704,000
                     Augmentation allowed.
    
             FOR THE UTILITY REGULATORY COMMISSION
                     Public Utility Fund (IC 8-1-6-1)
                         Personal Services              6,541,453     6,541,453
                         Other Operating Expense              1,800,652     1,800,652
                     Augmentation allowed.

         FOR THE WORKER'S COMPENSATION BOARD
                 From the General Fund
                         1,801,538    1,801,538
                 From the Worker's Compensation Supplemental Administrative Fund (IC 22-3-5-6)
                         145,007    145,007
                     Augmentation allowed.
    
             The amounts specified from the general fund and the workers' compensation supplemental
             administrative fund are for the following purposes:
    
                         Personal Services              1,853,570     1,853,570


                         Other Operating Expense              92,975     92,975
    
             FOR THE STATE BOARD OF ANIMAL HEALTH
                         Personal Services              3,854,067     3,854,067
                         Other Operating Expense              438,694     438,694
                 INDEMNITY FUND
                         Total Operating Expense                        4,000
                     Augmentation allowed.
                 MEAT & POULTRY INSPECTION
                         Total Operating Expense              1,545,698     1,545,698
    
             FOR THE DEPARTMENT OF HOMELAND SECURITY
                 FIRE AND BUILDING SERVICES
                     Fire and Building Services Fund (IC 22-12-6-1)
                         Personal Services              12,153,762     12,153,762
                         Other Operating Expense              1,084,450     1,084,450
                     Augmentation allowed.
                 REGIONAL PUBLIC SAFETY TRAINING
                     Regional Public Safety Training Fund (IC 10-15-3-12)
                         Total Operating Expense              1,617,274     1,617,274
                     Augmentation allowed.
                 EMERGENCY MANAGEMENT CONTINGENCY FUND
                         Total Operating Expense              121,645     121,645
    
             The above appropriations for the emergency management contingency fund are made
             under IC 10-14-3-28.
    
                 PUBLIC ASSISTANCE
                         Total Operating Expense              1     1
                     Augmentation allowed.
                 HOMELAND SECURITY FUND - FOUNDATION
                     Homeland Security Fund (IC 10-15-3-1)
                         Total Operating Expense              329,956     329,956
                     Augmentation allowed.
                 INDIANA EMERGENCY RESPONSE COMMISSION
                     Emergency Planning and Right to Know Fund (IC 6-6-10-5)
                         Total Operating Expense              75,892     75,892
                     Augmentation allowed.
                 STATE DISASTER RELIEF FUND
                     State Disaster Relief Fund (IC 10-14-4-5)
                         Total Operating Expense              500,000     500,000
                     Augmentation allowed, not to exceed revenues collected from the public safety
                     fee imposed by IC 22-11-14-12.
    
                     Augmentation allowed from the general fund to match federal disaster relief funds.
    
                 REDUCED IGNITION PROPENSITY STANDARDS FOR CIGARETTES FUND
                     Reduced Ignition Propensity Standards for Cigarettes Fund (IC 22-14-7-22(a))
                         Total Operating Expense              32,547     32,547
                     Augmentation allowed.
                 STATEWIDE FIRE AND BUILDING SAFETY EDUCATION FUND
                     Statewide Fire and Building Safety Education Fund (IC 22-12-6-3)
                         Total Operating Expense              104,250     104,250
                     Augmentation allowed.
    
         SECTION 5. [EFFECTIVE JULY 1, 2011]
    
             CONSERVATION AND ENVIRONMENT
    
             A. NATURAL RESOURCES
    
             FOR THE DEPARTMENT OF NATURAL RESOURCES - ADMINISTRATION
                         Personal Services              6,708,757     6,708,757
                         Other Operating Expense              1,335,828     1,335,828
                 ENTOMOLOGY AND PLANT PATHOLOGY DIVISION
                         Personal Services              357,973     357,973
                         Other Operating Expense              78,835     78,835
                 ENTOMOLOGY AND PLANT PATHOLOGY FUND
                     Entomology and Plant Pathology Fund (IC 14-24-10-3)
                         Total Operating Expense                        658,660
                     Augmentation allowed.
                 ENGINEERING DIVISION
                         Personal Services              1,522,685     1,522,685
                         Other Operating Expense              76,711     76,711
                 STATE MUSEUM
                         Personal Services              4,414,195     4,414,195
                         Other Operating Expense              881,643     881,643
                 HISTORIC PRESERVATION DIVISION
                         Personal Services              420,037     420,037
                         Other Operating Expense              54,640     54,640
                 HISTORIC PRESERVATION - FEDERAL
                         Total Operating Expense              227,076     227,076
                 DHPA DEDICATED
                         Total Operating Expense              27,675     27,675
                 STATE HISTORIC SITES
                         Personal Services              2,241,939     2,241,939
                         Other Operating Expense              223,332     223,332
                 LINCOLN PRODUCTION
                         Total Operating Expense              220,000     220,000
                 WABASH RIVER HERITAGE CORRIDOR
                     Wabash River Heritage Corridor Fund (IC 14-13-6-23)
                         Total Operating Expense              21,950     21,950
                 OUTDOOR RECREATION DIVISION
                         Personal Services              450,382     450,382
                         Other Operating Expense              22,980     22,980
                 OUTDOOR RECREATION DISTRIBUTION
                         Total Operating Expense              86,511     86,511
                 NATURE PRESERVES DIVISION
                         Personal Services              767,313     767,313
                         Other Operating Expense              21,789     21,789
                 NATURE PRESERVES - FEDERAL
                         Total Operating Expense              10,000     10,000
                 WATER DIVISION
                         Personal Services              3,684,274     3,684,274
                         Other Operating Expense              347,634     347,634
    
             All revenues accruing from state and local units of government and from private
             utilities and industrial concerns as a result of water resources study projects,
             and as a result of topographic and other mapping projects, shall be deposited into
             the state general fund, and such receipts are hereby appropriated, in addition to
             the foregoing amounts, for water resources studies.
    
                 WATER - FEDERAL
                         Total Operating Expense              67,500     67,500
                 DEER RESEARCH AND MANAGEMENT
                     Deer Research and Management Fund (IC 14-22-5-2)
                         Total Operating Expense              131,458     131,458
                     Augmentation allowed.
                 OIL AND GAS DIVISION
                     Oil and Gas Fund (IC 6-8-1-27)
                         Personal Services              1,181,127     1,181,127
                         Other Operating Expense              149,485     149,485
                     Augmentation allowed.
                 ENVIRONMENTAL PROTECTION AGENCY - INDIANA DEPT. OF NATURAL RESOURCES
                     Oil and Gas Fund (IC 6-8-1-27)
                         Total Operating Expense              309,016     309,016
                     Augmentation allowed.
                 STATE PARKS AND RESERVOIRS
                     From the General Fund
                             9,622,431     9,622,431
                     From the State Parks and Reservoirs Special Revenue Fund (IC 14-19-8-2)
                             23,884,975     23,884,975
                 Augmentation allowed from the State Parks and Reservoirs Special Revenue Fund.

             The amounts specified from the General Fund and the State Parks and Reservoirs


             Special Revenue Fund are for the following purposes:

                         Personal Services              23,515,587     23,515,587
                         Other Operating Expense              9,991,819     9,991,819

                 ACID MINE DRAINAGE ABATEMENT AND TREATMENT
                     Acid Mine Abatement and Treatment Fund (IC 14-34-19-1.3)
                         Total Operating Expense              1     1
                     Augmentation allowed.
                 OFF-ROAD VEHICLE AND SNOWMOBILE FUND
                     Off-Road Vehicle and Snowmobile Fund (IC 14-16-1-30)
                         Total Operating Expense              330,176     330,176
                     Augmentation allowed.
                 NATURAL RECREATION TRAILS
                     Off-Road Vehicle and Snowmobile Fund (IC 14-16-1-30)
                         Total Operating Expense              100,000     100,000
                     Augmentation allowed.
                 LAW ENFORCEMENT DIVISION
                     From the General Fund
                             8,446,236     8,446,236
                     From the Fish and Wildlife Fund (IC 14-22-3-2)
                             11,967,270     11,967,270
                     Augmentation allowed from the Fish and Wildlife Fund.
    
             The amounts specified from the General Fund and the Fish and Wildlife Fund are for
             the following purposes:
    
                         Personal Services              17,741,091     17,741,091
                         Other Operating Expense              2,672,415     2,672,415
    
                 FISH AND WILDLIFE DIVISION
                     Fish and Wildlife Fund (IC 14-22-3-2)
                         Personal Services              6,274,299     6,274,299
                         Other Operating Expense              2,551,967     2,551,967
                     Augmentation allowed.
                 DEPARTMENT OF THE INTERIOR - FISH AND WILDLIFE
                     Deer Research and Management Fund (IC 14-22-5-2)
                         Total Operating Expense              39,000     39,000
                     Fish and Wildlife Fund (IC 14-22-3-2)
                         Total Operating Expense              1,183,772     1,183,772
                     Augmentation allowed.
                 NONGAME FUND - FEDERAL
                     Nongame Fund (IC 14-22-34-20)
                         Total Operating Expense              168,750     168,750
                     Augmentation allowed.


                 FORESTRY DIVISION
                     From the General Fund
                         4,114,649    4,114,649
                     From the State Forestry Fund (IC 14-23-3-2)
                         4,874,334    4,874,334
                     Augmentation allowed from the State Forestry Fund.

             The amounts specified from the General Fund and the State Forestry Fund are for
             the following purposes:

                         Personal Services              7,288,922     7,288,922
                         Other Operating Expense              1,700,061     1,700,061
                 FORESTRY GRANTS
                     General Fund
                         Total Operating Expense              100,000     100,000
                     Entomology and Plant Pathology Fund (IC 14-24-10-3)
                         Total Operating Expense              50,000     50,000
                     Augmentation allowed.
                     State Forestry Fund (IC 14-23-3-2)
                         Total Operating Expense              500,000     500,000
                     Augmentation allowed.
                 RECLAMATION DIVISION
                     Natural Resources Reclamation Division Fund (IC 14-34-14-2)
                         Total Operating Expense              47,653     47,653
                     Augmentation allowed.
    
             In addition to any of the foregoing appropriations for the department of natural
             resources, any federal funds received by the state of Indiana for support of approved
             outdoor recreation projects for planning, acquisition, and development under the
             provisions of the federal Land and Water Conservation Fund Act, P.L.88-578, are
             appropriated for the uses and purposes for which the funds were paid to the state,
             and shall be distributed by the department of natural resources to state agencies
             and other governmental units in accordance with the provisions under which the
             funds were received.
    
                 DEPARTMENT OF THE INTERIOR - INDIANA DEPARTMENT OF NATURAL RESOURCES
                     General Fund
                         Total Operating Expense              70,000     70,000
                     Natural Resources Reclamation Division Fund (IC 14-34-14-2)
                         Total Operating Expense              1,554,488     1,554,488
                     Augmentation allowed.
                 LAKE MICHIGAN COASTAL PROGRAM
                     Cigarette Tax Fund (IC 6-7-1-29.1)
                         Total Operating Expense              3,879     3,879
                     Augmentation allowed.


                 LAKE MICHIGAN COASTAL PROGRAM - FEDERAL
                     Cigarette Tax Fund (IC 6-7-1-29.1)
                         Total Operating Expense              117,062     117,062
                     Augmentation allowed.
                 LAKE AND RIVER ENHANCEMENT
                     Lake and River Enhancement Fund (IC 6-6-11-12.5)
                         Total Operating Expense                        4,587,938
                     Augmentation allowed.
                 HERITAGE TRUST
                     General Fund
                         Total Operating Expense              100,000     100,000
                     Indiana Heritage Trust Fund (IC 14-12-2-25)
                         Total Operating Expense              1,000,000     1,000,000
                     Augmentation allowed.
                 INSTITUTIONAL ROAD CONSTRUCTION
                     State Highway Fund (IC 8-23-9-54)
                         Total Operating Expense              2,500,000     2,500,000
    
             The above appropriation for institutional road construction may be used for road
             and bridge construction, relocation, and other related improvement projects at state-owned
             properties managed by the department of natural resources.
    
             B. OTHER NATURAL RESOURCES
    
             FOR THE WORLD WAR MEMORIAL COMMISSION
                         Personal Services              635,632     635,632
                         Other Operating Expense              246,513     246,513
    
             All revenues received as rent for space in the buildings located at 777 North Meridian
             Street and 700 North Pennsylvania Street, in the city of Indianapolis, that exceed the
             costs of operation and maintenance of the space rented, shall be paid into the general
             fund. The American Legion shall provide for the complete maintenance of the interior
             of these buildings.
    
             FOR THE WHITE RIVER PARK COMMISSION
                         Total Operating Expense              814,445     814,445
    
             FOR THE MAUMEE RIVER BASIN COMMISSION
                         Total Operating Expense              57,509     57,509
    
             FOR THE ST. JOSEPH RIVER BASIN COMMISSION
                         Total Operating Expense              57,509     57,509
    
             FOR THE KANKAKEE RIVER BASIN COMMISSION
                         Total Operating Expense              57,509     57,509
    
             C. ENVIRONMENTAL MANAGEMENT
    
             FOR THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT
                 ADMINISTRATION
                     From the General Fund
                         3,038,302    3,038,302
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                         67,347    67,347
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                         58,226    58,226
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                         102,842    102,842
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                         648,285    648,285
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                         616,683    616,683
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                         89,272    89,272
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         181,422    181,422
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                         23,393    23,393
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                         52,290    52,290
                     From the Underground Petroleum Storage Tank Excess Liability Trust Fund (IC 13-23-7-1)
                         1,784,032    1,784,032
                     Augmentation allowed from the State Solid Waste Management Fund, Indiana
                     Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title V
                     Operating Permit Program Trust Fund, Environmental Management Permit
                     Operation Fund, Environmental Management Special Fund, Hazardous Substances
                     Response Trust Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank
                     Trust Fund, and Underground Petroleum Storage Tank Excess Liability Trust
                     Fund.
    
             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,
             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank
             Trust Fund, and Underground Petroleum Storage Tank Excess Liability Trust Fund
             are for the following purposes:
    
                          Personal Services              4,853,930     4,853,930
                          Other Operating Expense              1,808,164     1,808,164
    
                 LABORATORY CONTRACTS
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              392,236     392,236
                     Augmentation allowed.
                     Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         Total Operating Expense              170,609     170,609
                     Augmentation allowed.
    
                 OWQ LABORATORY CONTRACTS
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              289,399     289,399
                     Augmentation allowed.
                     Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         Total Operating Expense              675,266     675,266
                     Augmentation allowed.

             NORTHWEST REGIONAL OFFICE
                     From the General Fund
                             284,188     284,188
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                             6,231     6,231
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                             5,388     5,388
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             11,151     11,151
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             132,626     132,626
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             63,930     63,930
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             9,921     9,921
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             21,477     21,477
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             4,786     4,786
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             6,819     6,819
                     Augmentation allowed from the State Solid Waste Management Fund, Indiana
                     Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title V
                     Operating Permit Program Trust Fund, Environmental Management Permit
                     Operation Fund, Environmental Management Special Fund, Hazardous Substances
                     Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
                     Tank Trust Fund.
    


             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,
             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage Tank
             Trust Fund are for the following purposes:
    
                         Personal Services              274,099     274,099
                         Other Operating Expense              272,418     272,418
    
                 NORTHERN REGIONAL OFFICE
                     From the General Fund
                             178,684     178,684
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                             7,559     7,559
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                             6,533     6,533
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             11,378     11,378
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             111,458     111,458
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             69,472     69,472
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             10,677     10,677
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             19,993     19,993
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             4,021     4,021
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             5,669     5,669
                     Augmentation allowed from the State Solid Waste Management Fund, Indiana
                     Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title
                     V Operating Permit Program Trust Fund, Environmental Management Permit
                     Operation Fund, Environmental Management Special Fund, Hazardous Substances
                     Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
                     Tank Trust Fund.
    
             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,
             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
             Tank Trust Fund are for the following purposes:
    
                         Personal Services              218,829     218,829
                         Other Operating Expense              206,615     206,615
    
                 SOUTHEAST REGIONAL OFFICE
                     From the General Fund
                             109,321     109,321
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                             11,879     11,879
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                             10,269     10,269
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             14,406     14,406
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             49,392     49,392
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             46,757     46,757
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             8,517     8,517
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             16,297     16,297
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             1,780     1,780
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             4,693     4,693
                 Augmentation allowed from the State Solid Waste Management Fund, Indiana
                 Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title
                 V Operating Permit Program Trust Fund, Environmental Management Permit
                 Operation Fund, Environmental Management Special Fund, Hazardous Substances
                 Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
                 Tank Trust Fund.
    
             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,
             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
             Tank Trust Fund are for the following purposes:
    
                         Personal Services              207,235     207,235
                         Other Operating Expense              66,076     66,076
    
                 SOUTHWEST REGIONAL OFFICE
                     From the General Fund
                             134,215     134,215
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                             14,583     14,583
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                             12,608     12,608
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             17,686     17,686
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             60,639     60,639
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             57,406     57,406
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             10,456     10,456
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             20,008     20,008
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             2,185     2,185
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             5,764     5,764
                     Augmentation allowed from the State Solid Waste Management Fund, Indiana
                     Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title
                     V Operating Permit Program Trust Fund, Environmental Management Permit
                     Operation Fund, Environmental Management Special Fund, Hazardous Substances
                     Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
                     Tank Trust Fund.
    
             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,
             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
             Tank Trust Fund are for the following purposes:

                         Personal Services              201,928     201,928
                         Other Operating Expense              133,622     133,622

                 LEGAL AFFAIRS
                     From the General Fund
                             561,625     561,625
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             9,302     9,302
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             247,167     247,167
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             181,134     181,134
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             22,230     22,230


                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             41,995     41,995
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             8,917     8,917
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             11,284     11,284
                     From the Underground Petroleum Storage Tank Excess Liability Trust Fund (IC 13-23-7-1)
                             384,939     384,939
                     Augmentation allowed from the Waste Tire Management Fund, Title V Operating
                     Permit Program Trust Fund, Environmental Management Permit Operation Fund,
                     Environmental Management Special Fund, Hazardous Substances Response Trust
                     Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank Trust Fund,
                     and Underground Petroleum Storage Tank Excess Liability Trust Fund.
    
             The amounts specified from the General Fund, Waste Tire Management Fund, Title V
             Operating Permit Program Trust Fund, Environmental Management Permit Operation
             Fund, Environmental Management Special Fund, Hazardous Substances Response Trust
             Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank Trust Fund, and
             Underground Petroleum Storage Tank Excess Liability Trust Fund are for the
             following purposes:
    
                         Personal Services              1,106,236     1,106,236
                         Other Operating Expense              362,357     362,357
    
                 INVESTIGATIONS
                     From the General Fund
                             154,870     154,870
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                             5,924     5,924
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                             5,122     5,122
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             13,926     13,926
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             51,790     51,790
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             74,615     74,615
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             9,311     9,311
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             29,944     29,944
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             1,868     1,868
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             10,517     10,517
                     Augmentation allowed from the State Solid Waste Management Fund, Indiana
                     Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title V
                     Operating Permit Program Trust Fund, Environmental Management Permit
                     Operation Fund, Environmental Management Special Fund, Hazardous Substances
                     Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
                     Tank Trust Fund.
    
             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,
             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, and Underground Petroleum Storage
             Tank Trust Fund are for the following purposes:
    
                         Personal Services              327,498     327,498
                         Other Operating Expense              30,389     30,389
    
                 MEDIA AND COMMUNICATIONS
                     From the General Fund
                             499,452     499,452
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                             10,083     10,083
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                             8,721     8,721
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             15,058     15,058
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             88,137     88,137
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             77,426     77,426
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             11,664     11,664
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             24,738     24,738
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             3,176     3,176
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             7,422     7,422
                     From the Underground Petroleum Storage Tank Excess Liability Trust Fund (IC 13-23-7-1)
                             253,029     253,029
                     Augmentation allowed from the State Solid Waste Management Fund, Indiana
                     Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title V
                     Operating Permit Program Trust Fund, Environmental Management Permit Operation
                     Fund, Environmental Management Special Fund, Hazardous Substances Response
                     Trust Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank Trust
                     Fund, and Underground Petroleum Storage Tank Excess Liability Trust Fund.
    
             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,
             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank
             Trust Fund, and Underground Petroleum Storage Tank Excess Liability Trust Fund,
             are for the following purposes:
    
                         Personal Services              909,456     909,456
                         Other Operating Expense              89,450     89,450
    
                 PLANNING AND ASSESSMENT
                     From the General Fund
                             404,184     404,184
                     From the State Solid Waste Management Fund (IC 13-20-22-2)
                             11,837     11,837
                     From the Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                             10,154     10,154
                     From the Waste Tire Management Fund (IC 13-20-13-8)
                             17,536     17,536
                     From the Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                             102,641     102,641
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             90,171     90,171
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             13,574     13,574
                     From the Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                             28,806     28,806
                     From the Asbestos Trust Fund (IC 13-17-6-3)
                             3,703     3,703
                     From the Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                             8,639     8,639
                     From the Underground Petroleum Storage Tank Excess Liability Trust Fund (IC 13-23-7-1)
                             294,574     294,574
                     Augmentation allowed from the State Solid Waste Management Fund, Indiana
                 Recycling Promotion and Assistance Fund, Waste Tire Management Fund, Title V
                 Operating Permit Program Trust Fund, Environmental Management Permit Operation
                 Fund, Environmental Management Special Fund, Hazardous Substances Response
                 Trust Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank Trust
                 Fund, and Underground Petroleum Storage Tank Excess Liability Trust Fund.

             The amounts specified from the General Fund, State Solid Waste Management Fund,
             Indiana Recycling Promotion and Assistance Fund, Waste Tire Management Fund,


             Title V Operating Permit Program Trust Fund, Environmental Management Permit
             Operation Fund, Environmental Management Special Fund, Hazardous Substances
             Response Trust Fund, Asbestos Trust Fund, Underground Petroleum Storage Tank
             Trust Fund, and Underground Petroleum Storage Tank Excess Liability Trust Fund
             are for the following purposes:
    
                         Personal Services              931,869     931,869
                         Other Operating Expense              53,950     53,950
    
                 OHIO RIVER VALLEY WATER SANITATION COMMISSION
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              281,318     281,318
                      Augmentation allowed.
                 OFFICE OF ENVIRONMENTAL RESPONSE
                         Personal Services              2,642,731     2,642,731
                         Other Operating Expense              328,006     328,006
                 POLLUTION PREVENTION AND TECHNICAL ASSISTANCE
                         Personal Services              1,001,866     1,001,866
                         Other Operating Expense              151,354     151,354
                 PCB INSPECTIONS
                     Environmental Management Permit Operation Fund (IC 13-15-11-1)
                         Total Operating Expense              19,420     19,420
                     Augmentation allowed.
                 U.S. GEOLOGICAL SURVEY CONTRACTS
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              54,738     54,738
                     Augmentation allowed.
                 STATE SOLID WASTE GRANTS MANAGEMENT
                     State Solid Waste Management Fund (IC 13-20-22-2)
                         Personal Services              226,352     226,352
                         Other Operating Expense              229,429     229,429
                     Augmentation allowed.
                 RECYCLING OPERATING
                     Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                         Personal Services              283,598     283,598
                         Other Operating Expense              292,020     292,020
                     Augmentation allowed.
                 RECYCLING PROMOTION AND ASSISTANCE PROGRAM
                     Indiana Recycling Promotion and Assistance Fund (IC 4-23-5.5-14)
                         Total Operating Expense              524,000     524,000
                     Augmentation allowed.
                 VOLUNTARY CLEAN-UP PROGRAM
                     Voluntary Remediation Fund (IC 13-25-5-21)
                         Personal Services              827,047     827,047
                         Other Operating Expense              68,121     68,121
                     Augmentation allowed.
                 TITLE V AIR PERMIT PROGRAM
                     Title V Operating Permit Program Trust Fund (IC 13-17-8-1)
                         Personal Services              10,375,485     10,375,485
                         Other Operating Expense              1,938,006     1,938,006
                     Augmentation allowed.
                 WATER MANAGEMENT PERMITTING
                     From the General Fund
                             1,660,170     1,660,170
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             4,751,106     4,751,106
                     Augmentation allowed from the Environmental Management Permit Operation Fund.
    
             The amounts specified from the General Fund and the Environmental Management Permit
             Operation Fund are for the following purposes:
    
                         Personal Services              5,939,557     5,939,557
                         Other Operating Expense              471,719     471,719
    
                 SOLID WASTE MANAGEMENT PERMITTING
                     From the General Fund
                             1,768,784     1,768,784
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                             3,012,230     3,012,230
                     Augmentation allowed from the Environmental Management Permit Operation
                     Fund.
    
             The amounts specified from the General Fund and the Environmental Management
             Permit Operation Fund are for the following purposes:
    
                         Personal Services              4,453,339     4,453,339
                         Other Operating Expense              327,675     327,675
    
                 CFO/CAFO INSPECTIONS
                         Total Operating Expense              282,500     282,500
                 HAZARDOUS WASTE MANAGEMENT PERMITTING - FEDERAL
                         Total Operating Expense              1,316,311     1,316,311
                 HAZARDOUS WASTE MANAGEMENT PERMITTING
                     Environmental Management Permit Operation Fund (IC 13-15-11-1)
                         Personal Services              3,686,772     3,686,772
                         Other Operating Expense              356,212     356,212
                     Augmentation allowed.
                 ELECTRONIC WASTE
                     Electronic Waste Fund (IC 13-20.5-2-3)
                         Total Operating Expense              131,473     131,473
                 SAFE DRINKING WATER PROGRAM
                     From the General Fund
                         215,599    215,599
                     From the Environmental Management Permit Operation Fund (IC 13-15-11-1)
                         2,692,762    2,692,762
                 Augmentation allowed from the Environmental Management Permit Operation
                 Fund.

             The amounts specified from the General Fund and the Environmental Management
             Permit Operation Fund are for the following purposes:
    
                         Personal Services              2,034,100     2,034,100
                         Other Operating Expense              874,261     874,261
    
                 CLEAN VESSEL PUMPOUT
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              28,288     28,288
                     Augmentation allowed.
                 GROUNDWATER PROGRAM
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              111,269     111,269
                     Augmentation allowed.
                 UNDERGROUND STORAGE TANK PROGRAM
                     Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                         Total Operating Expense              306,234     306,234
                     Augmentation allowed.
                 AIR MANAGEMENT OPERATING
                     From the General Fund
                             604,576     604,576
                     From the Environmental Management Special Fund (IC 13-14-12-1)
                             264,324     264,324
                     Augmentation allowed from the Environmental Management Special Fund.
    
             The amounts specified from the General Fund and the Environmental Management
             Special Fund are for the following purposes:
    
                         Personal Services              582,889     582,889
                         Other Operating Expense              286,011     286,011
    
                 WATER MANAGEMENT NONPERMITTING
                         Personal Services              2,758,985     2,758,985
                         Other Operating Expense              802,379     802,379
                 GREAT LAKES INITIATIVE
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              57,385     57,385


                     Augmentation allowed.
                 LEAKING UNDERGROUND STORAGE TANKS
                     Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                         Personal Services              147,745     147,745
                         Other Operating Expense              23,686     23,686
                     Augmentation allowed.
                 CORE SUPERFUND
                     Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         Total Operating Expense              16,538     16,538
                     Augmentation allowed.
                 AUTO EMISSIONS TESTING PROGRAM
                         Personal Services              70,319     70,319
                         Other Operating Expense              5,370,180     5,370,180
    
             The above appropriations for auto emissions testing are the maximum amounts available
             for this purpose. If it becomes necessary to conduct additional tests in other locations,
             the above appropriations shall be prorated among all locations.
    
                 HAZARDOUS WASTE SITE - STATE CLEAN-UP
                     Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         Personal Services              1,796,779     1,796,779
                         Other Operating Expense              210,315     210,315
                     Augmentation allowed.
                 HAZARDOUS WASTE SITES - NATURAL RESOURCE DAMAGES
                     Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         Personal Services              227,541     227,541
                          Other Operating Expense              186,395     186,395
                     Augmentation allowed.
                 SUPERFUND MATCH
                     Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         Total Operating Expense              152,983     152,983
                     Augmentation allowed.
                 HOUSEHOLD HAZARDOUS WASTE
                     Hazardous Substances Response Trust Fund (IC 13-25-4-1)
                         Other Operating Expense              38,293     38,293
                     Augmentation allowed.
                 ASBESTOS TRUST - OPERATING
                     Asbestos Trust Fund (IC 13-17-6-3)
                         Personal Services              416,068     416,068
                         Other Operating Expense              56,095     56,095
                     Augmentation allowed.
                 UNDERGROUND PETROLEUM STORAGE TANK - OPERATING
                     Underground Petroleum Storage Tank Excess Liability Trust Fund (IC 13-23-7-1)
                         Personal Services              1,354,197     1,354,197
                         Other Operating Expense              40,263,150     40,263,150
                     Augmentation allowed.
                 WASTE TIRE MANAGEMENT
                     Waste Tire Management Fund (IC 13-20-13-8)
                         Total Operating Expense              417,147     417,147
                     Augmentation allowed.
                 WASTE TIRE RE-USE
                     Waste Tire Management Fund (IC 13-20-13-8)
                         Total Operating Expense              33,796     33,796
                     Augmentation allowed.
                 VOLUNTARY COMPLIANCE
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Personal Services              553,595     553,595
                         Other Operating Expense              178,178     178,178
                     Augmentation allowed.
                 ENVIRONMENTAL MANAGEMENT SPECIAL FUND - OPERATING
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              661,315     661,315
                     Augmentation allowed.
                 WETLANDS PROTECTION
                     Environmental Management Special Fund (IC 13-14-12-1)
                         Total Operating Expense              11,062     11,062
                     Augmentation allowed.
                 PETROLEUM TRUST - OPERATING
                     Underground Petroleum Storage Tank Trust Fund (IC 13-23-6-1)
                         Personal Services              136,157     136,157
                         Other Operating Expense              189,777     189,777
                     Augmentation allowed.
    
             Notwithstanding any other law, with the approval of the governor and the budget
             agency, the above appropriations for hazardous waste management permitting,
             wetlands protection, groundwater program, underground storage tank program,
             air management operating, asbestos trust operating, water management nonpermitting,
             safe drinking water program, and any other appropriation eligible to be included in a
             performance partnership grant may be used to fund activities incorporated into a
             performance partnership grant between the United States Environmental Protection
             Agency and the department of environmental management.
    
             FOR THE OFFICE OF ENVIRONMENTAL ADJUDICATION
                         Personal Services              296,578     296,578
                         Other Operating Expense              32,380     32,380
    
         SECTION 6. [EFFECTIVE JULY 1, 2011]
    
             ECONOMIC DEVELOPMENT
    
             A. AGRICULTURE
    
             FOR THE DEPARTMENT OF AGRICULTURE
                         Personal Services              1,615,208     1,615,208
                         Other Operating Expense              413,462     413,462
    
                 DISTRIBUTIONS TO FOOD BANKS
                         Total Operating Expense              300,000     300,000
                 CLEAN WATER INDIANA
                         Total Operating Expense              500,000     500,000
                     Cigarette Tax Fund (IC 6-7-1-29.1)
                         Total Operating Expense              3,666,425     3,666,425
                     Augmentation allowed.
                 SOIL CONSERVATION DIVISION
                     Cigarette Tax Fund (IC 6-7-1-29.1)
                         Total Operating Expense              1,582,884     1,582,884
                     Augmentation allowed.
                 GRAIN BUYERS AND WAREHOUSE LICENSING
                     Grain Buyers and Warehouse Licensing Agency License Fee Fund (IC 26-3-7-6.3)
                         Total Operating Expense              172,000     172,000
                     Augmentation allowed.
    
             B. COMMERCE
    
             FOR THE LIEUTENANT GOVERNOR
                 RURAL ECONOMIC DEVELOPMENT FUND
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              1,273,035     1,273,035
                 OFFICE OF TOURISM
                         Total Operating Expense              2,470,681     2,470,681
    
             Of the above appropriations, the office of tourism shall distribute $500,000 each
             year to the Indiana sports corporation to promote the hosting of amateur sporting
             events in Indiana cities. Funds may be released after review by the budget committee.
    
                 STATE ENERGY PROGRAM
                         Total Operating Expense              202,269     202,269
                 FOOD ASSISTANCE PROGRAM
                         Total Operating Expense              111,572     111,572
    
             FOR THE INDIANA ECONOMIC DEVELOPMENT CORPORATION
                 ADMINISTRATIVE AND FINANCIAL SERVICES
                     General Fund
                         Total Operating Expense              6,423,392     6,423,392
                     Training 2000 Fund (IC 5-28-7-5)
                         Total Operating Expense              185,630     185,630
                     Industrial Development Grant Fund (IC 5-28-25-4)
                         Total Operating Expense              52,139     52,139
                 21ST CENTURY RESEARCH & TECHNOLOGY FUND
                         Total Operating Expense              10,000,000     20,000,000
                 INTERNATIONAL TRADE
                         Total Operating Expense              1,232,197     1,232,197
                 ENTERPRISE ZONE PROGRAM
                     Enterprise Zone Fund (IC 5-28-15-6)
                         Total Operating Expense              85,000     85,000
                     Augmentation allowed.
                 LOCAL ECONOMIC DEVELOPMENT ORGANIZATION/
                 REGIONAL ECONOMIC DEVELOPMENT ORGANIZATION
                 (LEDO/REDO) MATCHING GRANT PROGRAM
                         Total Operating Expense                        600,000
                 TRAINING 2000
                         Total Operating Expense                        18,468,918
                 BUSINESS PROMOTION PROGRAM
                         Total Operating Expense                        1,741,758
                 ECONOMIC DEVELOPMENT GRANT AND LOAN PROGRAM
                         Total Operating Expense                        855,732
                 INDUSTRIAL DEVELOPMENT GRANT PROGRAM
                         Total Operating Expense                        6,500,000

         FOR THE HOUSING AND COMMUNITY DEVELOPMENT AUTHORITY
                 INDIANA INDIVIDUAL DEVELOPMENT ACCOUNTS
                     Affordable Housing and Community Development Fund (IC 5-20-4)
                         Total Operating Expense              1,000,000     1,000,000
    
             The housing and community development authority shall collect and report to the
             family and social services administration (FSSA) all data required for FSSA to meet
             the data collection and reporting requirements in 45 CFR Part 265.
    
             Family and social services administration, division of family resources shall apply
             all qualifying expenditures for individual development accounts deposits toward Indiana's
             maintenance of effort under the federal Temporary Assistance for Needy Families (TANF)
             program (45 CFR 260 et seq.).
    
                 MORTGAGE FORECLOSURE COUNSELING
                     Home Ownership Education Fund (IC 5-20-1-27)
                         Total Operating Expense              1,693,924     1,693,924
                     Augmentation Allowed.
    
             C. EMPLOYMENT SERVICES
    


             FOR THE DEPARTMENT OF WORKFORCE DEVELOPMENT
                 ADMINISTRATION
                         Total Operating Expense              361,000     361,000
                 ADULT EDUCATION DISTRIBUTION
                         Total Operating Expense              12,600,000     12,600,000
    
             It is the intent of the 2011 general assembly that the above appropriations for
             adult education shall be the total allowable state expenditure for such program.
             Therefore, if the expected disbursements are anticipated to exceed the total
             appropriation for a state fiscal year, the department of workforce development
             shall reduce the distributions proportionately.
    
                 WOMEN'S COMMISSION
                         Personal Services              83,899     83,899
                         Other Operating Expense              17,250     17,250
                 NATIVE AMERICAN INDIAN AFFAIRS COMMISSION
                         Total Operating Expense              76,679     76,679
                 COMMISSION ON HISPANIC/LATINO AFFAIRS
                         Total Operating Expense              105,600     105,600
    
             The above appropriations are in addition to any funding for the commission derived
             from funds appropriated to the department of workforce development.
    
             D. OTHER ECONOMIC DEVELOPMENT
    
             FOR THE INDIANA STATE FAIR BOARD
                     STATE FAIR
                         Total Operating Expense              600,000     600,000
    
         SECTION 7. [EFFECTIVE JULY 1, 2011]
    
             TRANSPORTATION
    
             FOR THE DEPARTMENT OF TRANSPORTATION
    
             For the conduct and operation of the department of transportation, the following sums
             are appropriated for the periods designated from the public mass transportation fund,
             the industrial rail service fund, the state highway fund, the motor vehicle highway
             account, the distressed road fund, the state highway road construction and improvement
             fund, the motor carrier regulation fund, and the crossroads 2000 fund.
    
                 INTERMODAL GRANT PROGRAM
                     Public Mass Transportation Fund (IC 8-23-3-8)
                         Total Operating Expense              50,000     50,000
                     Augmentation allowed.
                 RAILROAD GRADE CROSSING IMPROVEMENT
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Total Operating Expense              500,000     500,000
                 HIGH SPEED RAIL
                     Industrial Rail Service Fund (IC 8-3-1.7-2)
                         Matching Funds                        40,000
                     Augmentation allowed.
                 PUBLIC MASS TRANSPORTATION
                         Total Operating Expense              42,581,051     42,581,051
    
             The appropriations are to be used solely for the promotion and development of public
             transportation. The department of transportation shall allocate funds based on a
             formula approved by the commissioner of the department of transportation.
    
             The department of transportation may distribute public mass transportation funds
             to an eligible grantee that provides public transportation in Indiana.
    
             The state funds can be used to match federal funds available under the Federal Transit
             Act (49 U.S.C. 1601, et seq.) or local funds from a requesting grantee.
    
             Before funds may be disbursed to a grantee, the grantee must submit its request for
             financial assistance to the department of transportation for approval. Allocations
             must be approved by the governor and the budget agency after review by the budget
             committee and shall be made on a reimbursement basis. Only applications for capital
             and operating assistance may be approved. Only those grantees that have met the
             reporting requirements under IC 8-23-3 are eligible for assistance under this
             appropriation.

                 HIGHWAY OPERATING
                     State Highway Fund (IC 8-23-9-54)
                         270,724,355    263,724,355
                     Public Mass Transportation Fund (IC 8-23-3-8)
                         170,000    170,000
                     Industrial Rail Service Fund
                         305,000    305,000
    
             The amounts specified from the State Highway Fund, the Public Mass Transportation
             Fund, and the Industrial Rail Service Fund are for the following purposes:
    
    
                         Personal Services              214,386,249     207,386,249
                         Other Operating Expense              56,813,106     56,813,106
    
                 HIGHWAY VEHICLE AND ROAD MAINTENANCE EQUIPMENT
                     State Highway Fund (IC 8-23-9-54)


                         Other Operating Expense              15,300,000     15,300,000
    
             The above appropriations for highway operating and highway vehicle and road
             maintenance equipment may be used for personal services, equipment, and other
             operating expense, including the cost of transportation for the governor.
    
                 HIGHWAY MAINTENANCE WORK PROGRAM
                     State Highway Fund (IC 8-23-9-54)
                         Other Operating Expense              67,000,000     67,000,000
    
             The above appropriations for the highway maintenance work program may be used for:
             (1) materials for patching roadways and shoulders;
             (2) repairing and painting bridges;
             (3) installing signs and signals and painting roadways for traffic control;
             (4) mowing, herbicide application, and brush control;
             (5) drainage control;
             (6) maintenance of rest areas, public roads on properties of the department
             of natural resources, and driveways on the premises of all state facilities;
             (7) materials for snow and ice removal;
             (8) utility costs for roadway lighting; and
             (9) other special maintenance and support activities consistent with the
             highway maintenance work program.
    
                 HIGHWAY CAPITAL IMPROVEMENTS
                     State Highway Fund (IC 8-23-9-54)
                         Right-of-Way Expense              16,880,000     8,640,000
                         Formal Contracts Expense              80,484,822     99,090,903
                         Consulting Services Expense         12,340,000     10,000,000
                         Institutional Road Construction         2,500,000     2,500,000
    
             The above appropriations for the capital improvements program may be used for:
             (1) bridge rehabilitation and replacement;
             (2) road construction, reconstruction, or replacement;
             (3) construction, reconstruction, or replacement of travel lanes, intersections,
             grade separations, rest parks, and weigh stations;
             (4) relocation and modernization of existing roads;
             (5) resurfacing;
             (6) erosion and slide control;
             (7) construction and improvement of railroad grade crossings, including
             the use of the appropriations to match federal funds for projects;
             (8) small structure replacements;
             (9) safety and spot improvements; and
             (10) right-of-way, relocation, and engineering and consulting expenses
             associated with any of the above types of projects.
    
             The appropriations for highway operating, highway vehicle and road maintenance
             equipment, highway buildings and grounds, the highway planning and research
             program, the highway maintenance work program, and highway capital improvements
             are appropriated from estimated revenues, which include the following:
             (1) Funds distributed to the state highway fund from the motor vehicle highway account
             under IC 8-14-1-3(4).
             (2) Funds distributed to the state highway fund from the highway, road and street
             fund under IC 8-14-2-3.
             (3) All fees and miscellaneous revenues deposited in or accruing to the state highway
             fund under IC 8-23-9-54.
             (4) Any unencumbered funds carried forward in the state highway fund from any previous
             fiscal year.
             (5) All other funds appropriated or made available to the department of transportation
             by the general assembly.
    
             If funds from sources set out above for the department of transportation exceed
             appropriations from those sources to the department, the excess amount is hereby
             appropriated to be used for formal contracts with approval of the governor and the
             budget agency.
    
             If there is a change in a statute reducing or increasing revenue for department use,
             the budget agency shall notify the auditor of state to adjust the above appropriations
             to reflect the estimated increase or decrease. Upon the request of the department,
             the budget agency, with the approval of the governor, may allot any increase in
             appropriations to the department for formal contracts.
    
             If the department of transportation finds that an emergency exists or that an
             appropriation will be insufficient to cover expenses incurred in the normal
             operation of the department, the budget agency may, upon request of the department,
             and with the approval of the governor, transfer funds from revenue sources set out
             above from one (1) appropriation to the deficient appropriation. No appropriation
             from the state highway fund may be used to fund any toll road or toll bridge project
             except as specifically provided for under IC 8-15-2-20.

                 HIGHWAY PLANNING AND RESEARCH PROGRAM
                     State Highway Fund (IC 8-23-9-54)
                         Total Operating Expense              2,500,000     2,500,000

                 STATE HIGHWAY ROAD CONSTRUCTION AND IMPROVEMENT PROGRAM
                     State Highway Road Construction Improvement Fund (IC 8-14-10-5)
                         Lease Rental Payments Expense         61,400,000     62,300,000
                     Augmentation allowed.
    
             The above appropriations for the state highway road construction and improvement
             program are appropriated from the state highway road construction and improvement


             fund provided in IC 8-14-10-5 and may include any unencumbered funds carried
             forward from any previous fiscal year. The funds shall be first used for payment
             of rentals and leases relating to projects under IC 8-14.5. If any funds remain, the
             funds may be used for the following purposes:
             (1) road and bridge construction, reconstruction, or replacement;
             (2) construction, reconstruction, or replacement of travel lanes, intersections,
             and grade separations;
             (3) relocation and modernization of existing roads; and
             (4) right-of-way, relocation, and engineering and consulting expenses associated
             with any of the above types of projects.
    
                 CROSSROADS 2000 PROGRAM
                     State Highway Fund (IC 8-23-9-54)
                         Lease Rental Payment Expense         3,995,823     10,269,742
                     Augmentation allowed.
                     Crossroads 2000 Fund (IC 8-14-10-9)
                         Lease Rental Payment Expense         35,700,000     36,200,000
                     Augmentation allowed.
    
             The above appropriations for the crossroads 2000 program are appropriated from the
             crossroads 2000 fund provided in IC 8-14-10-9 and may include any unencumbered
             funds carried forward from any previous fiscal year. The funds shall be first used
             for payment of rentals and leases relating to projects under IC 8-14-10-9. If any
             funds remain, the funds may be used for the following purposes:
             (1) road and bridge construction, reconstruction, or replacement;
             (2) construction, reconstruction, or replacement of travel lanes, intersections, and
             grade separations;
             (3) relocation and modernization of existing roads; and
             (4) right-of-way, relocation, and engineering and consulting expenses associated
             with any of the above types of projects.
    
                 MAJOR MOVES CONSTRUCTION PROGRAM
                     Major Moves Construction Fund (IC 8-14-14-5)
                         Formal Contracts Expense              530,000,000     50,000,000
                     Augmentation allowed.
                 FEDERAL APPORTIONMENT
                     Right-of-Way Expense              82,420,000     42,160,000
                     Formal Contracts Expense              531,612,292     624,532,292
                     Consulting Engineers Expense              60,260,000     48,800,000
                     Highway Planning and Research          12,807,708     12,807,708
                     Local Government Revolving Acct.         229,030,000     242,770,000

             The department may establish an account to be known as the "local government revolving
             account". The account is to be used to administer the federal-local highway construction
             program. All contracts issued and all funds received for federal-local projects under


             this program shall be entered into this account.
    
             If the federal apportionments for the fiscal years covered by this act exceed the above
             estimated appropriations for the department or for local governments, the excess
             federal apportionment is hereby appropriated for use by the department with the
             approval of the governor and the budget agency.
    
             The department shall bill, in a timely manner, the federal government for all department
             payments that are eligible for total or partial reimbursement.
    
             The department may let contracts and enter into agreements for construction and
             preliminary engineering during each year of the 2011-2013 biennium that obligate
             not more than one-third (1/3) of the amount of state funds estimated by the department
             to be available for appropriation in the following year for formal contracts and consulting
             engineers for the capital improvements program.
    
             Under IC 8-23-5-7(a), the department, with the approval of the governor, may construct
             and maintain roadside parks and highways where highways will connect any state highway
             now existing, or hereafter constructed, with any state park, state forest preserve, state
             game preserve, or the grounds of any state institution. There is appropriated to the
             department of transportation an amount sufficient to carry out the provisions of this
             paragraph. Under IC 8-23-5-7(d), such appropriations shall be made from the motor
             vehicle highway account before distribution to local units of government.
    
             LOCAL TECHNICAL ASSISTANCE AND RESEARCH
    
             Under IC 8-14-1-3(6), there is appropriated to the department of transportation an amount
             sufficient for:
             (1) the program of technical assistance under IC 8-23-2-5(6); and
             (2) the research and highway extension program conducted for local government under
             IC 8-17-7-4.
    
             The department shall develop an annual program of work for research and extension in
             cooperation with those units being served, listing the types of research and educational
             programs to be undertaken. The commissioner of the department of transportation may
             make a grant under this appropriation to the institution or agency selected to conduct
             the annual work program. Under IC 8-14-1-3(6), appropriations for the program of
             technical assistance and for the program of research and extension shall be taken
             from the local share of the motor vehicle highway account.
    
             Under IC 8-14-1-3(7) there is hereby appropriated such sums as are necessary to
             maintain a sufficient working balance in accounts established to match federal and
             local money for highway projects. These funds are appropriated from the following
             sources in the proportion specified:
             (1) one-half (1/2) from the forty-seven percent (47%) set aside of the motor vehicle
             highway account under IC 8-14-1-3(7); and
             (2) for counties and for those cities and towns with a population greater than five
             thousand (5,000), one-half (1/2) from the distressed road fund under IC 8-14-8-2.
    
         SECTION 8. [EFFECTIVE JULY 1, 2011]
    
             FAMILY AND SOCIAL SERVICES, HEALTH, AND VETERANS' AFFAIRS
    
             A. FAMILY AND SOCIAL SERVICES
    
             FOR THE FAMILY AND SOCIAL SERVICES ADMINISTRATION
    
                 INDIANA PRESCRIPTION DRUG PROGRAM
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              1,117,830     1,117,830
                 CHILDREN'S HEALTH INSURANCE PROGRAM
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              36,984,504     36,984,504
                 FAMILY AND SOCIAL SERVICES ADMINISTRATION - CENTRAL OFFICE
                         Total Operating Expense              16,764,735     16,764,735
                 OFFICE OF MEDICAID POLICY AND PLANNING - ADMINISTRATION
                         Total Operating Expense              100,000     100,000
                 MEDICAID ADMINISTRATION
                         Total Operating Expense              33,103,064     33,103,064
                 MEDICAID - CURRENT OBLIGATIONS
                     General Fund
                         Total Operating Expense              1,716,500,000     1,882,500,000
    
             The foregoing appropriations for Medicaid current obligations and for Medicaid
             administration are for the purpose of enabling the office of Medicaid policy and
             planning to carry out all services as provided in IC 12-8-6. In addition to the above
             appropriations, all money received from the federal government and paid into the
             state treasury as a grant or allowance is appropriated and shall be expended by
             the office of Medicaid policy and planning for the respective purposes for which
             the money was allocated and paid to the state. Subject to the provisions of IC 12-8-1-12,
             if the sums herein appropriated for Medicaid current obligations and for Medicaid
             administration are insufficient to enable the office of Medicaid policy and planning
             to meet its obligations, then there is appropriated from the general fund such further
             sums as may be necessary for that purpose, subject to the approval of the governor
             and the budget agency.
    
                 INDIANA CHECK-UP PLAN (EXCLUDING IMMUNIZATION)
                     Indiana Check-Up Plan Trust Fund (IC 12-15-44.2-17)
                         Total Operating Expense              157,766,043     157,766,043
                 HOSPITAL CARE FOR THE INDIGENT FUND
                         Total Operating Expense              57,000,000     57,000,000
                 MEDICAL ASSISTANCE TO WARDS (MAW)
                         Total Operating Expense              13,100,000     13,100,000
                 MARION COUNTY HEALTH AND HOSPITAL CORPORATION
                         Total Operating Expense              38,000,000     38,000,000
                 MENTAL HEALTH ADMINISTRATION
                         Other Operating Expense              3,859,047     3,859,047

             Two hundred seventy-five thousand dollars ($275,000) of the above appropriation
             for the state fiscal year beginning July 1, 2011, and ending June 30, 2012, and
             two hundred seventy-five thousand dollars ($275,000) of the above appropriation
             for the state fiscal year beginning July 1, 2012, and ending June 30, 2013, shall
             be distributed in the state fiscal year to neighborhood based community service
             programs.
    
                 CHILD PSYCHIATRIC SERVICES FUND
                         Total Operating Expense              17,023,760     17,023,760
                 SERIOUSLY EMOTIONALLY DISTURBED
                         Total Operating Expense              15,075,408     15,075,408
                 SERIOUSLY MENTALLY ILL
                     General Fund
                         Total Operating Expense              94,302,551     94,302,551
                     Mental Health Centers Fund (IC 6-7-1-32.1)
                         Total Operating Expense              4,311,650     4,311,650
                     Augmentation allowed.
                 COMMUNITY MENTAL HEALTH CENTERS
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              7,000,000     7,000,000
    
             The above appropriation from the Tobacco Master Settlement Agreement Fund is in
             addition to other funds. The above appropriations for comprehensive community mental
             health services include the intragovernmental transfers necessary to provide the
             nonfederal share of reimbursement under the Medicaid rehabilitation option.
    
             The comprehensive community mental health centers shall submit their proposed annual
             budgets (including income and operating statements) to the budget agency on or before
             August 1 of each year. All federal funds shall be applied in augmentation of the foregoing
             funds rather than in place of any part of the funds. The office of the secretary, with the
             approval of the budget agency, shall determine an equitable allocation of the appropriation
             among the mental health centers.
    
                 GAMBLERS' ASSISTANCE
                     Gamblers' Assistance Fund (IC 4-33-12-6)
                         Total Operating Expense              4,041,728     4,041,728
                 SUBSTANCE ABUSE TREATMENT


                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              4,855,820     4,855,820
                 QUALITY ASSURANCE/RESEARCH
                         Total Operating Expense              562,860     562,860
                 PREVENTION
                     Gamblers' Assistance Fund (IC 4-33-12-6)
                         Total Operating Expense              2,572,675     2,572,675
                 Augmentation allowed.
             METHADONE DIVERSION CONTROL AND OVERSIGHT (MDCO) PROGRAM
                     Opioid Treatment Program Fund (IC 12-23-18-4)
                         Total Operating Expense              380,566     380,566
                     Augmentation allowed.
                 DMHA YOUTH TOBACCO REDUCTION SUPPORT PROGRAM
                     DMHA Youth Tobacco Reduction Support Program (IC 4-33-12-6)
                         Total Operating Expense              250,000     250,000
                     Augmentation allowed.
                 EVANSVILLE PSYCHIATRIC CHILDREN'S CENTER
                     From the General Fund
                             97,100     97,100
                     From the Mental Health Fund (IC 12-24-14-4)
                             1,496,038     1,496,038
                     Augmentation allowed.
    
             The amounts specified from the general fund and the mental health fund are for the
             following purposes:
    
                         Personal Services              1,279,699     1,279,699
                         Other Operating Expense              313,439     313,439
    
                 EVANSVILLE STATE HOSPITAL
                     From the General Fund
                             20,156,185     20,156,185
                     From the Mental Health Fund (IC 12-24-14-4)
                             3,971,008     3,971,008
                     Augmentation allowed.
    
             The amounts specified from the general fund and the mental health fund are for the
             following purposes:
    
                         Personal Services              17,977,966     17,977,966
                         Other Operating Expense              6,149,227     6,149,227
    
                 LARUE CARTER MEMORIAL HOSPITAL
                     From the General Fund
                             19,946,791     19,946,791
                     From the Mental Health Fund (IC 12-24-14-4)
                             2,765,060     2,765,060
                     Augmentation allowed.
    
             The amounts specified from the general fund and the mental health fund are for the
             following purposes:
    
                         Personal Services              16,034,506     16,034,506
                         Other Operating Expense              6,677,345     6,677,345

                 LOGANSPORT STATE HOSPITAL
                     From the General Fund
                         22,092,775    22,092,775
                     From the Mental Health Fund (IC 12-24-14-4)
                         6,318,370    6,318,370
                     Augmentation allowed.
    
             The amounts specified from the general fund and the mental health fund are for the
             following purposes:
    
                         Personal Services              24,528,698     24,528,698
                         Other Operating Expense              3,882,447     3,882,447
    
                 MADISON STATE HOSPITAL
                     From the General Fund
                             21,633,735     21,633,735
                     From the Mental Health Fund (IC 12-24-14-4)
                             5,754,681     5,754,681
                     Augmentation allowed.
    
             The amounts specified from the general fund and the mental health fund are for the
             following purposes:
    
                         Personal Services              21,339,985     21,339,985
                         Other Operating Expense              6,048,431     6,048,431
    
                 RICHMOND STATE HOSPITAL
                     From the General Fund
                             30,556,566     30,556,566
                     From the Mental Health Fund (IC 12-24-14-4)
                             2,261,464     2,261,464
                     Augmentation allowed.
    
             The amounts specified from the general fund and the mental health fund are for the
             following purposes:


    
                         Personal Services              25,399,821     25,399,821
                         Other Operating Expense              7,418,209     7,418,209
    
                 PATIENT PAYROLL
                         Total Operating Expense              257,206     257,206
    
             The federal share of revenue accruing to the state mental health institutions under
             IC 12-15, based on the applicable Federal Medical Assistance Percentage (FMAP),
             shall be deposited in the mental health fund established by IC 12-24-14-1, and the
             remainder shall be deposited in the general fund.

             In addition to the above appropriations, each institution may qualify for an additional
             appropriation, or allotment, subject to approval of the governor and the budget agency,
             from the mental health fund of up to twenty percent (20%), but not to exceed $50,000
             in each fiscal year, of the amount by which actual net collections exceed an amount
             specified in writing by the division of mental health and addiction before July 1 of
             each year beginning July 1, 2011.

             DIVISION OF FAMILY RESOURCES ADMINISTRATION
                         Personal Services              1,325,447     1,325,447
                         Other Operating Expense              1,670,322     1,670,322
                 COMMISSION ON THE SOCIAL STATUS OF BLACK MALES
                         Total Operating Expense              139,620     139,620
                 SSBG - DIVISION OF FAMILY RESOURCES
                         Total Operating Expense              1,100,000     1,100,000
                 CHILD CARE LICENSING FUND
                     Child Care Fund (IC 12-17.2-2-3)
                         Total Operating Expense              100,000     100,000
                     Augmentation allowed.
                 ELECTRONIC BENEFIT TRANSFER PROGRAM
                         Total Operating Expense              2,278,565     2,278,565
    
             The foregoing appropriations for the division of family resources Title IV-D of the
             federal Social Security Act are made under, and not in addition to, IC 31-25-4-28.
    
                 DFR - COUNTY ADMINISTRATION
                         Total Operating Expense              89,154,386     90,229,853
                 INDIANA CLIENT ELIGIBILITY SYSTEM (ICES)
                         Total Operating Expense              7,292,497     7,292,497
                 IMPACT PROGRAM
                         Total Operating Expense              3,016,665     3,016,665
                 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
                         Total Operating Expense              31,776,757     31,776,757
                 SNAP ADMINISTRATION


                         Total Operating Expense              2,182,125     2,182,125
                 CHILD CARE & DEVELOPMENT FUND
                         Total Operating Expense              34,316,109     34,316,109
    
             The foregoing appropriations for information systems/technology, education
             and training, Temporary Assistance for Needy Families (TANF), and child care
             services are for the purpose of enabling the division of family resources to carry
             out all services as provided in IC 12-14. In addition to the above appropriations,
             all money received from the federal government and paid into the state treasury
             as a grant or allowance is appropriated and shall be expended by the division of
             family resources for the respective purposes for which such money was allocated
             and paid to the state.
    
                 BURIAL EXPENSES
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              1,607,219     1,607,219
             SCHOOL AGE CHILD CARE PROJECT FUND
                         Total Operating Expense              812,413     812,413
             HEADSTART - FEDERAL
                         Total Operating Expense              43,750     43,750
             DIVISION OF AGING ADMINISTRATION
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Personal Services              327,983     327,983
                         Other Operating Expense              637,395     637,395
    
             The above appropriations for the division of aging administration are for administrative
             expenses. Any federal fund reimbursements received for such purposes are to be deposited
             in the general fund.
    
                 ROOM AND BOARD ASSISTANCE (R-CAP)
                         Total Operating Expense              10,481,788     10,481,788
                 C.H.O.I.C.E. IN-HOME SERVICES
                         Total Operating Expense              48,765,643     48,765,643
    
             The foregoing appropriations for C.H.O.I.C.E. In-Home Services include intragovernmental
             transfers to provide the nonfederal share of the Medicaid aged and disabled waiver.
    
             The intragovernmental transfers for use in the Medicaid aged and disabled waiver
             may not exceed in the state fiscal year beginning July 1, 2011, and ending June
             30, 2012, fifteen million dollars ($15,000,000) and in the state fiscal year beginning
             July 1, 2012, and ending June 30, 2013, eighteen million dollars ($18,000,000).
    
             The division of aging shall conduct an annual evaluation of the cost effectiveness
             of providing home and community-based services. Before January of each year, the
             division shall submit a report to the budget committee, the budget agency, and the
             legislative council that covers all aspects of the division's evaluation and such
             other information pertaining thereto as may be requested by the budget committee,
             the budget agency, or the legislative council, including the following:
             (1) the number and demographic characteristics of the recipients of home and
             community-based services during the preceding fiscal year, including a separate
             count of individuals who received no services other than case management services
             (as defined in 460 IAC 1.2-4-10) during the preceding fiscal year;
             (2) the total cost and per recipient cost of providing home and community-based
             services during the preceding fiscal year.
    
             The division shall obtain from providers of services data on their costs and expenditures
             regarding implementation of the program and report the findings to the budget committee,
             the budget agency, and the legislative council. The report to the legislative council must
             be in an electronic format under IC 5-14-6.
    
                 STATE SUPPLEMENT TO SSBG - AGING
                         Total Operating Expense              687,396     687,396
                 OLDER HOOSIERS ACT
                         Total Operating Expense              1,573,446     1,573,446
                 ADULT PROTECTIVE SERVICES
                     General Fund
                         Total Operating Expense              1,956,528     1,956,528
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              495,420     495,420
                     Augmentation allowed.
                 ADULT GUARDIANSHIP SERVICES
                         Total Operating Expense              405,565     405,565
                 MEDICAID WAIVER
                         Total Operating Expense              1,062,895     1,062,895
                 TITLE III ADMINISTRATION GRANT
                         Total Operating Expense              310,000     310,000
                 OMBUDSMAN
                         Total Operating Expense              310,124     310,124
    
                 DIVISION OF DISABILITY AND REHABILITATIVE SERVICES ADMINISTRATION
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              360,764     360,764
    
                 BUREAU OF REHABILITATIVE SERVICES
                  - VOCATIONAL REHABILITATION OPERATING
                         Personal Services              3,448,621     3,448,621
                         Other Operating Expense              12,425,093     12,425,093
                 AID TO INDEPENDENT LIVING
                         Total Operating Expense              46,927     46,927
                 ACCESSABILITY CENTER FOR INDEPENDENT LIVING
                         Total Operating Expense              87,665     87,665
                 SOUTHERN INDIANA CENTER FOR INDEPENDENT LIVING
                         Total Operating Expense              87,665     87,665
                 ATTIC, INCORPORATED
                         Total Operating Expense              87,665     87,665
                 LEAGUE FOR THE BLIND AND DISABLED
                         Total Operating Expense              87,665     87,665
                 FUTURE CHOICES, INC.
                         Total Operating Expense              158,113     158,113
                 THE WABASH INDEPENDENT LIVING AND LEARNING CENTER, INC.
                         Total Operating Expense              158,113     158,113
                 INDEPENDENT LIVING CENTER OF EASTERN INDIANA
                         Total Operating Expense              158,113     158,113
                 STATE SUPPLEMENT TO SSBG - DDRS
                         Total Operating Expense              343,481     343,481
                 BUREAU OF REHABILITATIVE SERVICES - DEAF AND HARD OF HEARING SERVICES
                         Personal Services              114,542     114,542
                         Other Operating Expense              202,232     202,232
                 BUREAU OF REHABILITATIVE SERVICES - BLIND VENDING OPERATIONS
                         Total Operating Expense              129,905     129,905
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES
                  - RESIDENTIAL FACILITIES COUNCIL
                         Total Operating Expense              5,008     5,008
                 BUREAU OF REHABILITATIVE SERVICES
                  - OFFICE OF SERVICES FOR THE BLIND AND VISUALLY IMPAIRED
                         Personal Services              58,156     58,156
                         Other Operating Expense              23,580     23,580
                 BUREAU OF REHABILITATIVE SERVICES - EMPLOYEE TRAINING
                         Total Operating Expense              6,112     6,112
                 BUREAU OF QUALITY IMPROVEMENT SERVICES - BQIS
                         Total Operating Expense              3,636,983     3,636,983
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES - DAY SERVICES
                         Other Operating Expense              3,159,384     3,159,384
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES
                  - DIAGNOSIS AND EVALUATION
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Other Operating Expense              400,125     400,125
                 FIRST STEPS
                         Total Operating Expense              6,149,513     6,149,513
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES - EPILEPSY PROGRAM
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Other Operating Expense              463,758     463,758
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES - CAREGIVER SUPPORT
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Other Operating Expense              509,500     509,500
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES - OPERATING
                     General Fund
                         Total Operating Expense              5,286,696     5,286,696
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              2,458,936     2,458,936
                     Augmentation allowed.
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES CASE MANAGEMENT - OASIS
                         Total Operating Expense              2,516,000     2,516,000
                 BUREAU OF DEVELOPMENTAL DISABILITIES SERVICES - RESIDENTIAL SERVICES
                     General Fund
                         Total Operating Expense              91,996,290     91,996,290
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              10,229,000     10,229,000
    
             The above appropriations for client services include the intragovernmental transfers
             necessary to provide the nonfederal share of reimbursement under the Medicaid program
             for day services provided to residents of group homes and nursing facilities.
    
             In the development of new community residential settings for persons with developmental
             disabilities, the division of disability and rehabilitative services must give priority to the
             appropriate placement of such persons who are eligible for Medicaid and currently
             residing in intermediate care or skilled nursing facilities and, to the extent permitted
             by law, such persons who reside with aged parents or guardians or families in crisis.
    
             FOR THE DEPARTMENT OF CHILD SERVICES
                 DEPARTMENT OF CHILD SERVICES - CASE MANAGEMENT
                         Personal Services              22,337,394     22,337,394
                         Other Operating Expense              4,313,127     4,313,127
                 CASE MANAGEMENT SERVICES APPROPRIATION
                         Total Operating Expense              59,711,491     59,711,491
                 DEPARTMENT OF CHILD SERVICES - COUNTY ADMINISTRATION
                      - STATE APPROPRIATION
                         Personal Services              19,660,436     19,660,436
                         Other Operating Expense              13,249,977     13,249,977
                 DEPARTMENT OF CHILD SERVICES - COUNTY ADMINISTRATION
                         Total Operating Expense              11,808,523     11,808,523
                 DEPARTMENT OF CHILD SERVICES - STATE ADMINISTRATION
                         Personal Services              7,327,026     7,327,026
                         Other Operating Expense              1,930,543     1,930,543
                 CHILD WELFARE ADMINISTRATION - STATE APPROPRIATION
                         Total Operating Expense              9,573,607     9,573,607
                 CHILD WELFARE SERVICES STATE GRANTS
                         Total Operating Expense              7,500,000     7,500,000
                 TITLE IV-D OF THE FEDERAL SOCIAL SECURITY ACT (STATE MATCH)
                         Total Operating Expense              7,475,179     7,475,179
    
             The foregoing appropriations for the department of child services Title IV-D of the
             federal Social Security Act are made under, and not in addition to, IC 31-25-4-28.
    
                 FAMILY AND CHILDREN FUND
                     General Fund
                         Total Operating Expense              282,977,440     282,977,440
                     Augmentation allowed.
                     Family and Children Reimbursement (IC 31-40-1-3)
                         Total Operating Expense              6,536,332     6,536,332
                     Augmentation allowed.
                 FAMILY AND CHILDREN SERVICES
                         Total Operating Expense              25,438,882     25,438,882
                 ADOPTION SERVICES GRANTS
                         Total Operating Expense              26,983,440     26,983,440
                 INDEPENDENT LIVING
                         Total Operating Expense              811,525     811,525
                 YOUTH SERVICE BUREAU
                         Total Operating Expense              1,303,699     1,303,699
                 PROJECT SAFEPLACE
                         Total Operating Expense              112,500     112,500
                 HEALTHY FAMILIES INDIANA
                         Total Operating Expense              1,093,165     1,093,165
                 CHILD WELFARE TRAINING
                         Total Operating Expense              1,884,030     1,884,030
                 SPECIAL NEEDS ADOPTION II
                         Personal Services              228,975     228,975
                         Other Operating Expense              470,625     470,625
                 ADOPTION SERVICES
                         Total Operating Expense              15,606,117     15,606,117
                 NONRECURRING ADOPTION ASSISTANCE
                         Total Operating Expense              921,500     921,500
                 INDIANA SUPPORT ENFORCEMENT TRACKING (ISETS)
                         Total Operating Expense              4,806,636     4,806,636
                 CHILD PROTECTION AUTOMATION PROJECT (ICWIS)
                         Total Operating Expense              1,421,375     1,421,375

             FOR THE DEPARTMENT OF ADMINISTRATION
                 DEPARTMENT OF CHILD SERVICES OMBUDSMAN BUREAU
                         Total Operating Expense              145,000     145,000
    
             B. PUBLIC HEALTH
    
             FOR THE STATE DEPARTMENT OF HEALTH
                         Personal Services              18,798,345     18,798,345


                         Other Operating Expense              5,619,468     5,619,468
    
             All receipts to the state department of health from licenses or permit fees shall
             be deposited in the state general fund.
    
                 AREA HEALTH EDUCATION CENTERS
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              1,179,375     1,179,375
                 CANCER REGISTRY
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              519,050     519,050
                 MINORITY HEALTH INITIATIVE
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              2,550,000     2,550,000
    
             The foregoing appropriations shall be allocated to the Indiana Minority Health Coalition
             to work with the state department on the implementation of IC 16-46-11.
    
                 SICKLE CELL
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              250,000     250,000
                 AID TO COUNTY TUBERCULOSIS HOSPITALS
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              82,351     82,351
    
             These funds shall be used for eligible expenses according to IC 16-21-7-3 for tuberculosis
             patients for whom there are no other sources of reimbursement, including patient
             resources, health insurance, medical assistance payments, and hospital care for the
             indigent.
    
                 MEDICARE-MEDICAID CERTIFICATION
                         Total Operating Expense              5,329,012     5,329,012
    
             Personal services augmentation allowed in amounts not to exceed revenue from health
             facilities license fees or from health care providers (as defined in IC 16-18-2-163) fee
             increases or those adopted by the Executive Board of the Indiana State Department of
             health under IC 16-19-3.
    
                 AIDS EDUCATION
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Personal Services              248,082     248,082
                         Other Operating Expense              446,576     446,576
                 HIV/AIDS SERVICES
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              2,054,141     2,054,141
                 SSBG - AIDS CARE COORDINATION
                         Total Operating Expense              296,504     296,504
                 TEST FOR DRUG AFFLICTED BABIES
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              49,403     49,403
                 STATE CHRONIC DISEASES
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Personal Services              81,007     81,007
                         Other Operating Expense              835,656     835,656
    
             At least $82,560 of the above appropriations shall be for grants to community groups
             and organizations as provided in IC 16-46-7-8.
    
                 WOMEN, INFANTS, AND CHILDREN SUPPLEMENT
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              190,000     190,000
                 SSBG - MATERNAL AND CHILD HEALTH - HEALTHY FAMILIES (MCHHF)
                         Total Operating Expense              289,352     289,352
                 MATERNAL AND CHILD HEALTH SUPPLEMENT
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              190,000     190,000
                 CANCER EDUCATION AND DIAGNOSIS - BREAST CANCER
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              73,516     73,516
                 CANCER EDUCATION AND DIAGNOSIS - PROSTATE CANCER
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              79,050     79,050
                 ADOPTION HISTORY
                     Adoption History Fund (IC 31-19-18-6)
                         Total Operating Expense              183,212     183,212
                     Augmentation allowed.
                 CHILDREN WITH SPECIAL HEALTH CARE NEEDS
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              11,782,759     11,782,759
                     Augmentation allowed.
                 NEWBORN SCREENING PROGRAM
                     Newborn Screening Fund (IC 16-41-17-11)
                         Personal Services              500,697     500,697
                         Other Operating Expense              2,160,946     2,160,946
                 Augmentation allowed.

         The above appropriation includes funding for pulse oximetry screening of infants.

                 RADON GAS TRUST FUND
                     Radon Gas Trust Fund (IC 16-41-38-8)


                         Total Operating Expense              9,739     9,739
                     Augmentation allowed.
                 BIRTH PROBLEMS REGISTRY
                     Birth Problems Registry Fund (IC 16-38-4-17)
                         Personal Services              62,853     62,853
                         Other Operating Expense              42,938     42,938
                     Augmentation allowed.
                 MOTOR FUEL INSPECTION PROGRAM
                     Motor Fuel Inspection Fund (IC 16-44-3-10)
                         Total Operating Expense              148,294     148,294
                     Augmentation allowed.
                 PROJECT RESPECT
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              457,218     457,218
                 DONATED DENTAL SERVICES
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              36,492     36,492
    
             The above appropriation shall be used by the Indiana foundation for dentistry for
             the handicapped.
    
                 OFFICE OF WOMEN'S HEALTH
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              103,061     103,061
                 SPINAL CORD AND BRAIN INJURY
                     Spinal Cord and Brain Injury Fund (IC 16-41-42.2-3)
                         Total Operating Expense              1,523,634     1,523,634
                 INDIANA CHECK-UP PLAN - IMMUNIZATIONS
                     Indiana Check-Up Plan Trust Fund (IC 12-15-44.2-17)
                         Total Operating Expense              11,000,000     11,000,000
                 WEIGHTS AND MEASURES FUND
                     Weights and Measures Fund (IC 16-19-5-4)
                         Total Operating Expense              19,400     19,400
                     Augmentation allowed.
                 MINORITY EPIDEMIOLOGY
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              637,500     637,500
                 COMMUNITY HEALTH CENTERS
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              15,000,000     15,000,000
                 FAMILY HEALTH CENTER OF CLARK COUNTY
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              50,000     50,000
                 PRENATAL SUBSTANCE USE & PREVENTION
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              127,500     127,500
                 LOCAL HEALTH MAINTENANCE FUND
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              3,920,000     3,920,000
                 Augmentation allowed.

             The amount appropriated from the tobacco master settlement agreement fund is in
             lieu of the appropriation provided for this purpose in IC 6-7-1-30.5 or any other law.
             Of the above appropriations for the local health maintenance fund, $60,000 each year
             shall be used to provide additional funding to adjust funding through the formula in
             IC 16-46-10 to reflect population increases in various counties. Money appropriated
             to the local health maintenance fund must be allocated under the following schedule
             each year to each local board of health whose application for funding is approved by
             the state department of health:
    
             COUNTY POPULATION              AMOUNT OF GRANT
             over 499,999         94,112
             100,000 - 499,999         72,672
             50,000 - 99,999         48,859
             under 50,000         33,139
    
                 LOCAL HEALTH DEPARTMENT ACCOUNT
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              3,000,000     3,000,000
    
             The foregoing appropriations for the local health department account are statutory
             distributions under IC 4-12-7.
    
                 TOBACCO USE PREVENTION AND CESSATION PROGRAM
                     Tobacco Master Settlement Agreement Fund (IC 4-12-1-14.3)
                         Total Operating Expense              8,051,037     8,051,037
    
             A minimum of 85% of the above appropriations shall be used for grants to local
             agencies and other entities with programs designed to reduce smoking.
    
             FOR THE INDIANA SCHOOL FOR THE BLIND AND VISUALLY IMPAIRED
                         Personal Services              9,664,722     9,664,722
                         Other Operating Expense              965,000     965,000
    
             FOR THE INDIANA SCHOOL FOR THE DEAF
                         Personal Services              14,608,440     14,608,440
                         Other Operating Expense              1,731,367     1,731,367
    
             C. VETERANS' AFFAIRS
    


             FOR THE INDIANA DEPARTMENT OF VETERANS' AFFAIRS
                         Personal Services              446,086     446,086
                         Other Operating Expense              80,108     80,108
    
                 DISABLED AMERICAN VETERANS OF WORLD WARS
                         Total Operating Expense              40,000     40,000
                 AMERICAN VETERANS OF WORLD WAR II, KOREA, AND VIETNAM
                         Total Operating Expense              30,000     30,000
                 VETERANS OF FOREIGN WARS
                         Total Operating Expense              30,000     30,000
                 VIETNAM VETERANS OF AMERICA
                         Total Operating Expense                        20,000
                 MILITARY FAMILY RELIEF FUND
                     Military Family Relief Fund (IC 10-17-12-8)
                         Total Operating Expense              450,000     450,000
    
                 INDIANA VETERANS' HOME
                     From the General Fund
                             10,893,256     10,893,256
                     From the Veterans' Home Comfort and Welfare Fund (IC 10-17-9-7(d))
                             9,381,362     9,381,362
                     Augmentation allowed from the Comfort and Welfare Fund in amounts not
                     to exceed revenue collected for Medicaid and Medicare reimbursement.
    
             The amounts specified from the General Fund and the Veterans' Home Comfort and Welfare
             Fund are for the following purposes:
    
                         Personal Services              13,552,779     13,552,779
                         Other Operating Expense              6,721,839     6,721,839
    
                 COMFORT AND WELFARE PROGRAM
                     Comfort and Welfare Fund (IC 10-17-9-7(c))
                         Total Operating Expense              1,031,223     1,031,223
                     Augmentation allowed.
    
         SECTION 9. [EFFECTIVE JULY 1, 2011]
    
             EDUCATION
    
             A. HIGHER EDUCATION
    
             FOR INDIANA UNIVERSITY
                 BLOOMINGTON CAMPUS
                         Total Operating Expense              180,268,458     180,268,458
                         Fee Replacement              22,984,251     15,668,143
    
                 FOR INDIANA UNIVERSITY REGIONAL CAMPUSES
                 EAST
                         Total Operating Expense              8,330,921     8,330,921
                         Fee Replacement              1,399,673     1,399,262
    
                 KOKOMO
                         Total Operating Expense              11,354,682     11,354,682
                         Fee Replacement              1,819,808     1,818,053
    
                 NORTHWEST
                         Total Operating Expense              16,275,368     16,275,368
                         Fee Replacement              2,595,769     2,801,821
    
                 SOUTH BEND
                         Total Operating Expense              21,756,890     21,756,890
                         Fee Replacement              4,263,191     4,263,860
    
                 SOUTHEAST
                         Total Operating Expense              18,976,859     18,976,859
                         Fee Replacement              3,046,340     3,052,964
    
                 TOTAL APPROPRIATION - INDIANA UNIVERSITY REGIONAL CAMPUSES
                             89,819,501     90,030,680
    
             FOR INDIANA UNIVERSITY - PURDUE UNIVERSITY
             AT INDIANAPOLIS (IUPUI)
                 HEALTH DIVISIONS
                         Total Operating Expense              98,042,060     98,042,060
                         Fee Replacement              2,919,493     3,626,825
    
             FOR INDIANA UNIVERSITY SCHOOL OF MEDICINE ON
                 THE CAMPUS OF THE UNIVERSITY OF SOUTHERN INDIANA
                         Total Operating Expense              1,603,670     1,603,670
    
                 THE CAMPUS OF INDIANA UNIVERSITY-PURDUE UNIVERSITY FORT WAYNE
                         Total Operating Expense              1,475,274     1,475,274
    
                 THE CAMPUS OF INDIANA UNIVERSITY-NORTHWEST
                         Total Operating Expense              2,095,829     2,095,829
    
                 THE CAMPUS OF PURDUE UNIVERSITY
                         Total Operating Expense              1,870,823     1,870,823
    
                 THE CAMPUS OF BALL STATE UNIVERSITY
                         Total Operating Expense              1,682,175     1,682,175
    
                 THE CAMPUS OF THE UNIVERSITY OF NOTRE DAME
                         Total Operating Expense              1,560,016     1,560,016
    
                 THE CAMPUS OF INDIANA STATE UNIVERSITY
                         Total Operating Expense              1,859,876     1,859,876
    
             The Indiana University School of Medicine - Indianapolis shall submit to the Indiana
             commission for higher education before May 15 of each year an accountability report
             containing data on the number of medical school graduates who entered primary care
             physician residencies in Indiana from the school's most recent graduating class.
    
             FOR INDIANA UNIVERSITY - PURDUE UNIVERSITY AT INDIANAPOLIS (IUPUI)
                 GENERAL ACADEMIC DIVISIONS
                         Total Operating Expense              85,628,143     85,628,143
                         Fee Replacement              12,609,727     15,664,799

             TOTAL APPROPRIATIONS - IUPUI
                             211,347,086     215,109,490
    
             Transfers of allocations between campuses to correct for errors in allocation among
             the campuses of Indiana University can be made by the institution with the approval of
             the commission for higher education and the budget agency. Indiana University shall
             maintain current operations at all statewide medical education sites.
    
             FOR INDIANA UNIVERSITY
                 ABILENE NETWORK OPERATIONS CENTER
                         Total Operating Expense              707,707     707,707
    
                 SPINAL CORD AND HEAD INJURY RESEARCH CENTER
                         Total Operating Expense              524,230     524,230
    
                 MEDICAL EDUCATION CENTER EXPANSION
                         Total Operating Expense              3,000,000     3,000,000
    
             The above appropriations for medical education center expansion are intended to
             help increase medical school class size on a statewide basis. The funds shall be
             used to help increase enrollment and to provide clinical instruction. The funds
             shall be distributed to the nine (9) existing medical education centers in proportion
             to the increase in enrollment for each center.
    
                 INSTITUTE FOR THE STUDY OF DEVELOPMENTAL DISABILITIES
                         Total Operating Expense              2,105,824     2,105,824
    


                 GEOLOGICAL SURVEY
                         Total Operating Expense              2,636,907     2,636,907
    
                 LOCAL GOVERNMENT ADVISORY COMMISSION
                         Total Operating Expense              48,062     48,062
    
                 I-LIGHT NETWORK OPERATIONS
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              1,471,833     1,471,833
    
             FOR PURDUE UNIVERSITY
                 WEST LAFAYETTE
                         Total Operating Expense              233,843,356     233,843,356
                         Fee Replacement              25,150,230     25,273,722

             FOR PURDUE UNIVERSITY - REGIONAL CAMPUSES
                 CALUMET
                         Total Operating Expense              26,844,940     26,844,940
                         Fee Replacement              1,490,058     1,489,772

                 NORTH CENTRAL
                         Total Operating Expense              13,073,588     13,073,588

                 TOTAL APPROPRIATION - PURDUE UNIVERSITY REGIONAL CAMPUSES
                             41,408,586     41,408,300
    
             FOR INDIANA UNIVERSITY - PURDUE UNIVERSITY
                 AT FORT WAYNE (IPFW)
                         Total Operating Expense              38,563,050     38,563,050
                         Fee Replacement              5,412,164     5,420,037
    
             Transfers of allocations between campuses to correct for errors in allocation among
             the campuses of Purdue University can be made by the institution with the approval of
             the commission for higher education and the budget agency.
    
             FOR PURDUE UNIVERSITY
                 ANIMAL DISEASE DIAGNOSTIC LABORATORY SYSTEM
                         Total Operating Expense              3,449,706     3,449,706
    
             The above appropriations shall be used to fund the animal disease diagnostic laboratory
             system (ADDL), which consists of the main ADDL at West Lafayette, the bangs disease
             testing service at West Lafayette, and the southern branch of ADDL Southern Indiana
             Purdue Agricultural Center (SIPAC) in Dubois County. The above appropriations are
             in addition to any user charges that may be established and collected under IC 21-46-3-5.
             Notwithstanding IC 21-46-3-4, the trustees of Purdue University may approve reasonable


             charges for testing for pseudorabies.
    
                 STATEWIDE TECHNOLOGY
                         Total Operating Expense              6,468,848     6,468,848
    
                 COUNTY AGRICULTURAL EXTENSION EDUCATORS
                         Total Operating Expense              7,234,605     7,234,605
    
                 AGRICULTURAL RESEARCH AND EXTENSION - CROSSROADS
                         Total Operating Expense              7,238,961     7,238,961
    
                 CENTER FOR PARALYSIS RESEARCH
                         Total Operating Expense              522,558     522,558
    
                 UNIVERSITY-BASED BUSINESS ASSISTANCE
                         Total Operating Expense              1,889,039     1,889,039
    
                 FOR INDIANA STATE UNIVERSITY
                         Total Operating Expense              67,650,483     67,650,483
                         Fee Replacement              8,887,196     8,906,871

                 NURSING PROGRAM
                         Total Operating Expense              204,000     204,000

             FOR UNIVERSITY OF SOUTHERN INDIANA
                         Total Operating Expense              40,109,493     40,109,493
                         Fee Replacement              10,998,767     12,134,116
    
                 HISTORIC NEW HARMONY
                         Total Operating Expense              470,414     470,414
    
             FOR BALL STATE UNIVERSITY
                         Total Operating Expense              118,723,016     118,723,016
                         Fee Replacement              14,038,557     14,678,487
    
                 ENTREPRENEURIAL COLLEGE
                         Total Operating Expense              2,500,000     2,500,000
    
                 ACADEMY FOR SCIENCE, MATHEMATICS, AND HUMANITIES
                         Total Operating Expense              4,273,836     4,273,836
    
             FOR VINCENNES UNIVERSITY
                         Total Operating Expense              37,302,378     37,302,378
                         Fee Replacement              4,176,639     4,869,491
    


             FOR IVY TECH COMMUNITY COLLEGE
                         Total Operating Expense              186,417,941     186,417,941
                         Fee Replacement              29,817,924     30,805,687
    
                 VALPO NURSING PARTNERSHIP
                         Total Operating Expense              85,411     85,411
    
                 FT. WAYNE PUBLIC SAFETY TRAINING CENTER
                         Total Operating Expense              1,000,000     1,000,000
    
             FOR THE INDIANA HIGHER EDUCATION TELECOMMUNICATIONS SYSTEM (IHETS)
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              491,438     491,438
    
             The above appropriations do not include funds for the course development grant program.
    
             The sums herein appropriated to Indiana University, Purdue University, Indiana State
             University, University of Southern Indiana, Ball State University, Vincennes University,
             Ivy Tech Community College, and the Indiana Higher Education Telecommunications
             System (IHETS) are in addition to all income of said institutions and IHETS, respectively,
             from all permanent fees and endowments and from all land grants, fees, earnings, and
             receipts, including gifts, grants, bequests, and devises, and receipts from any miscellaneous
             sales from whatever source derived.

             All such income and all such fees, earnings, and receipts on hand June 30, 2011, and
             all such income and fees, earnings, and receipts accruing thereafter are hereby
             appropriated to the boards of trustees or directors of the aforementioned institutions
             and IHETS and may be expended for any necessary expenses of the respective institutions
             and IHETS, including university hospitals, schools of medicine, nurses' training
             schools, schools of dentistry, and agricultural extension and experimental stations.
             However, such income, fees, earnings, and receipts may be used for land and structures
             only if approved by the governor and the budget agency.
    
             The foregoing appropriations to Indiana University, Purdue University, Indiana State
             University, University of Southern Indiana, Ball State University, Vincennes University,
             Ivy Tech Community College, and IHETS include the employers' share of Social Security
             payments for university and IHETS employees under the public employees' retirement
             fund, or institutions covered by the Indiana state teachers' retirement fund. The funds
             appropriated also include funding for the employers' share of payments to the public
             employees' retirement fund and to the Indiana state teachers' retirement fund at a rate
             to be established by the retirement funds for both fiscal years for each institution and
             for IHETS employees covered by these retirement plans.
    
             The treasurers of Indiana University, Purdue University, Indiana State University,
             University of Southern Indiana, Ball State University, Vincennes University, and


             Ivy Tech Community College shall, at the end of each three (3) month period, prepare
             and file with the auditor of state a financial statement that shall show in total all
             revenues received from any source, together with a consolidated statement of disbursements
             for the same period. The budget director shall establish the requirements for the form
             and substance of the reports.
    
             The reports of the treasurer also shall contain in such form and in such detail as the
             governor and the budget agency may specify, complete information concerning receipts
             from all sources, together with any contracts, agreements, or arrangements with any
             federal agency, private foundation, corporation, or other entity from which such receipts
             accrue.
    
             All such treasurers' reports are matters of public record and shall include without
             limitation a record of the purposes of any and all gifts and trusts with the sole
             exception of the names of those donors who request to remain anonymous.
    
             Notwithstanding IC 4-10-11, the auditor of state shall draw warrants to the treasurers
             of Indiana University, Purdue University, Indiana State University, University of
             Southern Indiana, Ball State University, Vincennes University, and Ivy Tech Community
             College on the basis of vouchers stating the total amount claimed against each fund or
             account, or both, but not to exceed the legally made appropriations.
    
             Notwithstanding IC 4-12-1-14, for universities and colleges supported in whole or
             in part by state funds, grant applications and lists of applications need only be
             submitted upon request to the budget agency for review and approval or disapproval
             and, unless disapproved by the budget agency, federal grant funds may be requested
             and spent without approval by the budget agency. Each institution shall retain the
             applications for a reasonable period of time and submit a list of all grant applications,
             at least monthly, to the commission for higher education for informational purposes.
    
             For all university special appropriations, an itemized list of intended expenditures,
             in such form as the governor and the budget agency may specify, shall be submitted
             to support the allotment request. All budget requests for university special appropriations
             shall be furnished in a like manner and as a part of the operating budgets of the state
             universities.
    
             The trustees of Indiana University, the trustees of Purdue University, the trustees
             of Indiana State University, the trustees of University of Southern Indiana, the
             trustees of Ball State University, the trustees of Vincennes University, the trustees
             of Ivy Tech Community College and the directors of IHETS are hereby authorized to
             accept federal grants, subject to IC 4-12-1.
    
             Fee replacement funds are to be distributed as requested by each institution, on
             payment due dates, subject to available appropriations.
    
             FOR THE MEDICAL EDUCATION BOARD
                 FAMILY PRACTICE RESIDENCY FUND
                         Total Operating Expense              1,909,998     1,909,998
    
             Of the foregoing appropriations for the medical education board-family practice
             residency fund, $1,000,000 each year shall be used for grants for the purpose of
             improving family practice residency programs serving medically underserved areas.
    
             FOR THE COMMISSION FOR HIGHER EDUCATION
                         Total Operating Expense              1,255,225     1,255,225
    
                 STATEWIDE TRANSFER WEB SITE
                         Total Operating Expense              1,047,649     1,047,649
    
             FOR THE DEPARTMENT OF ADMINISTRATION
                 ANIMAL DISEASE DIAGNOSTIC LABORATORY LEASE RENTAL
                         Total Operating Expense              523,363     0
    
                 COLUMBUS LEARNING CENTER LEASE PAYMENT
                         Total Operating Expense              4,959,000     5,048,000
    
             FOR THE STATE BUDGET AGENCY
                 GIGAPOP PROJECT
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              656,158     656,158
    
                 SOUTHERN INDIANA EDUCATIONAL ALLIANCE
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              1,090,452     1,090,452
    
                 DEGREE LINK
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              460,245     460,245

             The above appropriations shall be used for the delivery of Indiana State University
             baccalaureate degree programs at Ivy Tech Community College and Vincennes
             University locations through Degree Link.

             WORKFORCE CENTERS
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              732,794     732,794
    
                 MIDWEST HIGHER EDUCATION COMPACT
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              95,000     95,000


    
             FOR THE STATE STUDENT ASSISTANCE COMMISSION
                         Total Operating Expense              912,336     912,336
                 FREEDOM OF CHOICE GRANTS
                         Total Operating Expense              52,429,136     53,369,953
                 HIGHER EDUCATION AWARD PROGRAM
                         Total Operating Expense              153,761,566     156,520,749
                 NURSING SCHOLARSHIP PROGRAM
                         Total Operating Expense              377,179     377,179
    
             For the higher education awards and freedom of choice grants made for the 2011-2013
             biennium, the following guidelines shall be used, notwithstanding current administrative
             rule or practice:
             (1) Financial Need: For purposes of these awards, financial need shall be limited
             to actual undergraduate tuition and fees for the prior academic year as established
             by the commission.
             (2) Maximum Base Award: The maximum award shall not exceed the lesser of:
             (A) eighty percent (80%) of actual prior academic year undergraduate tuition and
             fees; or
             (B) eighty percent (80%) of the sum of the highest prior academic year undergraduate
             tuition and fees at any public institution of higher education and the lowest appropriation
             per full-time equivalent (FTE) undergraduate student at any public institution of higher
             education.
             (3) Minimum Award: No actual award shall be less than $400.
             (4) Award Size: A student's maximum award shall be reduced one (1) time:
             (A) for dependent students, by the expected contribution from parents based upon
             information submitted on the financial aid application form; and
             (B) for independent students, by the expected contribution derived from information
             submitted on the financial aid application form.
             (5) Award Adjustment: The maximum base award may be adjusted by the commission,
             for any eligible recipient who fulfills college preparation requirements defined by the
             commission.
             (6) Adjustment:
             (A) If the dollar amounts of eligible awards exceed appropriations and program reserves,
             all awards may be adjusted by the commission by reducing the maximum award under
             subdivision (2)(A) or (2)(B).
             (B) If appropriations and program reserves are sufficient and the maximum awards
             are not at the levels described in subdivision (2)(A) and (2)(B), all awards may be adjusted
             by the commission by proportionally increasing the awards to the maximum award under
             that subdivision so that parity between those maxima is maintained but not exceeded.

             TUITION AND FEE EXEMPTION FOR CHILDREN OF VETERANS AND
             PUBLIC SAFETY OFFICERS (IC 21-14)
                         Total Operating Expense              24,496,750     26,619,114
    


                 PART-TIME STUDENT GRANT DISTRIBUTION
                         Total Operating Expense              7,851,835     7,851,835
    
             Priority for awards made from the above appropriation shall be given first to eligible
             students meeting TANF income eligibility guidelines as determined by the family and
             social services administration and second to eligible students who received awards
             from the part-time grant fund during the school year associated with the biennial budget
             year. Funds remaining shall be distributed according to procedures established by the
             commission. The maximum grant that an applicant may receive for a particular academic
             term shall be established by the commission but shall in no case be greater than a grant
             for which an applicant would be eligible under IC 21-12-3 if the applicant were a
             full-time student. The commission shall collect and report to the family and social
             services administration (FSSA) all data required for FSSA to meet the data collection
             and reporting requirements in 45 CFR Part 265.
    
             The family and social services administration, division of family resources, shall apply
             all qualifying expenditures for the part-time grant program toward Indiana's maintenance
             of effort under the federal Temporary Assistance for Needy Families (TANF) program
             (45 CFR 260 et seq.).
    
                 CONTRACT FOR INSTRUCTIONAL OPPORTUNITIES IN SOUTHEASTERN INDIANA
                         Total Operating Expense              207,000     207,000
                 MINORITY TEACHER SCHOLARSHIP FUND
                         Total Operating Expense              415,919     415,919
                 COLLEGE WORK STUDY PROGRAM
                         Total Operating Expense              837,719     837,719
                 21ST CENTURY ADMINISTRATION
                         Total Operating Expense              1,892,383     1,892,383
                 21ST CENTURY SCHOLAR AWARDS
                         Total Operating Expense              29,109,298     29,109,298
    
             The commission shall collect and report to the family and social services administration
             (FSSA) all data required for FSSA to meet the data collection and reporting requirements
             in 45 CFR 265.
    
             Family and social services administration, division of family resources, shall apply
             all qualifying expenditures for the 21st century scholars program toward Indiana's
             maintenance of effort under the federal Temporary Assistance for Needy Families
             (TANF) program (45 CFR 260 et seq.).

                 NATIONAL GUARD SCHOLARSHIP
                         Total Operating Expense              2,806,588     2,806,588

             The above appropriations for national guard scholarship and any program reserves
             existing on June 30, 2011, shall be the total allowable state expenditure for the


             program in the 2011-2013 biennium. If the dollar amounts of eligible awards exceed
             appropriations and program reserves, the state student assistance commission shall
             develop a plan to ensure that the total dollar amount does not exceed the above appropriations
             and any program reserves.
    
             B. ELEMENTARY AND SECONDARY EDUCATION
    
             FOR THE DEPARTMENT OF EDUCATION
                 STATE BOARD OF EDUCATION
                         Total Operating Expense              3,700,716     3,700,716
    
             The foregoing appropriations for the Indiana state board of education are for the
             education roundtable established by IC 20-19-4-2; for the academic standards project
             to distribute copies of the academic standards and provide teachers with curriculum
             frameworks; for special evaluation and research projects including national and
             international assessments; and for state board and roundtable administrative expenses.
    
                 SUPERINTENDENT'S OFFICE
                     From the General Fund
                             8,495,125     8,495,125
                     From the Professional Standards Fund (IC 20-28-2-10)
                             395,000     395,000
                     Augmentation allowed from the Professional Standards Fund.
    
             The amounts specified from the General Fund and the Professional Standards Fund
             are for the following purposes:
    
                         Personal Services              7,260,090     7,260,090
                         Other Operating Expense              1,630,035     1,630,035
    
                 PUBLIC TELEVISION DISTRIBUTION
                         Total Operating Expense              1,610,000     1,610,000
    
             The above appropriations are for grants for public television. The Indiana Public
             Broadcasting Stations, Inc., shall submit a distribution plan for the eight Indiana
             public education television stations that shall be approved by the budget agency
             after review by the budget committee. Of the above appropriations, $230,000 each
             year shall be distributed equally among all of the public radio stations.
    
                 RILEY HOSPITAL
                         Total Operating Expense              23,715     23,715
                 BEST BUDDIES
                         Total Operating Expense              212,500     212,500
                 PERKINS STATE MATCH
                         Total Operating Expense              494,000     494,000
                 MOTORCYCLE OPERATOR SAFETY EDUCATION FUND
                     Safety Education Fund (IC 20-30-13-11)
                         Personal Services              69,015     69,015
                         Other Operating Expense              915,015     915,015
                     Augmentation allowed.

             The foregoing appropriations for the motorcycle operator safety education fund are
             from the motorcycle operator safety education fund created by IC 20-30-13-11.
    
                 SCHOOL TRAFFIC SAFETY
                     Motor Vehicle Highway Account (IC 8-14-1)
                         Personal Services              146,750     146,750
                         Other Operating Expense              105,733     105,733
                     Augmentation allowed.
                 EDUCATION LICENSE PLATE FEES
                     Education License Plate Fees Fund (IC 9-18-31)
                         Total Operating Expense              115,569     115,569
                 ACCREDITATION SYSTEM
                         Personal Services              327,512     327,512
                         Other Operating Expense              395,352     395,352
                 SPECIAL EDUCATION (S-5)
                         Total Operating Expense              24,750,000     24,750,000
    
             The foregoing appropriations for special education are made under IC 20-35-6-2.
    
                 SPECIAL EDUCATION EXCISE
                     Alcoholic Beverage Excise Tax Funds (IC 20-35-4-4)
                         Personal Services              137,962     137,962
                         Other Operating Expense              248,565     248,565
                     Augmentation allowed.
                 CAREER AND TECHNICAL EDUCATION
                         Personal Services              1,084,381     1,084,381
                         Other Operating Expense              128,522     128,522
    
                 TRANSFER TUITION (STATE EMPLOYEES' CHILDREN AND ELIGIBLE
                 CHILDREN IN MENTAL HEALTH FACILITIES)
                         Total Operating Expense              7,000     7,000
    
             The foregoing appropriations for transfer tuition (state employees' children and
             eligible children in mental health facilities) are made under IC 20-26-11-8 and
             IC 20-26-11-10.
    
                 TEACHERS' SOCIAL SECURITY AND RETIREMENT DISTRIBUTION
                         Total Operating Expense              2,403,792     2,403,792
    


             The foregoing appropriations shall be distributed by the department of education on a
             monthly basis and in approximately equal payments to special education cooperatives,
             area career and technical education schools, and other governmental entities that
             received state teachers' Social Security distributions for certified education personnel
             (excluding the certified education personnel funded through federal grants) during the
             fiscal year beginning July 1, 1992, and ending June 30, 1993, and for the units under
             the Indiana state teacher's retirement fund, the amount they received during the
             2002-2003 state fiscal year for teachers' retirement. If the total amount to be distributed
             is greater than the total appropriation, the department of education shall reduce each
             entity's distribution proportionately.
    
                 DISTRIBUTION FOR TUITION SUPPORT
                         Total Operating Expense              6,262,800,000     6,308,700,000
    
             The foregoing appropriations for distribution for tuition support are to be distributed
             for tuition support, special education programs, career and technical education
             programs, honors grants, Mitch Daniels early graduation scholarships, and the primetime
             program in accordance with a statute enacted for this purpose during the 2011 session
             of the general assembly.
    
             If the above appropriations for distribution for tuition support are more than are
             required under this SECTION, any excess shall revert to the general fund.
    
             The above appropriations for tuition support shall be made each calendar year under a
             schedule set by the budget agency and approved by the governor. However, the schedule
             shall provide for at least twelve (12) payments, that one (1) payment shall be made at
             least every forty (40) days, and the aggregate of the payments in each calendar year
             shall equal the amount required under the statute enacted for the purpose referred
             to above.
    
             The above appropriation for tuition support includes an amount for the department
             of education to make a special distribution to each school corporation and charter
             school (other than a virtual charter school). The department shall determine the
             amount of the distribution for each year as follows:
                 STEP ONE: Determine the total amount distributed in the year to all individuals
                 for a scholarship under the choice scholarship program described in House Bill
                 1003-2011 or a similar program for eligible students who enroll in a private
                 school.
                 STEP TWO: Determine the total amount of state tuition support that all school
                 corporations and charter schools (other than virtual charter schools) would
                 have received in the year if those individuals who received a scholarship and
                 who were enrolled in a public school during the preceding two (2) semesters
                 before first receiving the scholarship had instead remained enrolled in public
                 schools and had not enrolled in private schools.
                 STEP THREE: Determine the result of:
                     (A) the STEP TWO result; minus
                     (B) the STEP ONE amount.
                 STEP FOUR. Determine each school corporation's percentage and each charter
                 school's (other than a virtual charter school) percentage of the total state
                 tuition support that will be distributed to school corporations and charter
             schools (other than virtual charter schools).
             STEP FIVE: Multiply the result determined in STEP THREE by the school
             corporation's percentage or the charter school's (other than a virtual charter
             school) percentage determined under STEP FOUR.
             If the above appropriations are insufficient to make the full distribution under
             this provision, the amount each school corporation and charter school (other than
             a virtual charter school) receives shall be proportionately reduced. The special
             distributions may be made only after review by the state budget committee and
             approval by the budget agency.
    
                 DISTRIBUTION FOR SUMMER SCHOOL
                         Other Operating Expense              18,360,000     18,360,000
    
             It is the intent of the 2011 general assembly that the above appropriations for summer
             school shall be the total allowable state expenditure for such program. Therefore, if
             the expected disbursements are anticipated to exceed the total appropriation for that
             state fiscal year, then the department of education shall reduce the distributions
             proportionately.
    
                 EARLY INTERVENTION PROGRAM AND READING DIAGNOSTIC ASSESSMENT
                         Total Operating Expense              4,012,000     4,012,000
    
             The above appropriation for the early intervention program may be used for grants to
             local school corporations for grant proposals for early intervention programs.
    
             The foregoing appropriations may be used by the department for the reading diagnostic
             assessment and subsequent remedial programs or activities. The reading diagnostic
             assessment program, as approved by the board, is to be made available on a voluntary
             basis to all Indiana public and nonpublic school first and second grade students upon
             the approval of the governing body of school corporations. The board shall determine
             how the funds will be distributed for the assessment and related remediation. The
             department or its representative shall provide progress reports on the assessment
             as requested by the board and the education roundtable.
    
                 NATIONAL SCHOOL LUNCH PROGRAM
                         Total Operating Expense              5,125,000     5,125,000
                 MARION COUNTY DESEGREGATION COURT ORDER
                         Total Operating Expense              14,000,000     10,000,000
    
             The foregoing appropriations for court ordered desegregation costs are made under
             order No. IP 68-C-225-S of the United States District Court for the Southern District
             of Indiana. If the sums herein appropriated are insufficient to enable the state to meet
             its obligations, then there are hereby appropriated from the state general fund such
             further sums as may be necessary for such purpose.
    
                 CHARTER SCHOOL FACILITIES ASSISTANCE PROGRAM
                     Charter School Facilities Assistance Fund (IC 20-24-12-4)
                         Total Operating Expense              8,000,000     9,000,000
    
             Of the above appropriation, $8,000,000 shall be transferred in FY 2012 and $9,000,000
             in FY 2013 from the common school fund interest balance to the charter school facilities
             assistance fund.

                 TEXTBOOK REIMBURSEMENT
                          Total Operating Expense              39,000,000     39,000,000

             Before a school corporation or an accredited nonpublic school may receive a distribution
             under the textbook reimbursement program, the school corporation or accredited nonpublic
             school shall provide to the department the requirements established in IC 20-33-5-2.
             The department shall provide to the family and social services administration (FSSA)
             all data required for FSSA to meet the data collection reporting requirement in 45
             CFR 265. Family and social services administration, division of family resources,
             shall apply all qualifying expenditures for the textbook reimbursement program toward
             Indiana's maintenance of effort under the federal Temporary Assistance for Needy
             Families (TANF) program (45 CFR 260 et seq.).
    
             The foregoing appropriations for textbook reimbursement include the appropriation
             of the common school fund interest balance that is not appropriated for another
             purpose. The remainder of the above appropriations are provided from the state general
             fund.
    
                 FULL-DAY KINDERGARTEN
                         Total Operating Expense              81,900,000     81,900,000
    
             The above appropriations for full-day kindergarten are available to school corporations
             and charter schools that apply to the department of education for funding of full-day
             kindergarten. The amount available to a school corporation or charter school equals
             the amount appropriated divided by the total full day kindergarten enrollment of all
             participating school corporations and charter schools (as defined in IC 20-43-1-4)
             for the current year, and then multiplied by the school corporation's or charter
             school's full day kindergarten enrollment of eligible pupils (as defined in IC 20-43-1-11)
             for the current year. However, a school corporation or charter school may not receive
             more than $2,500 dollars per student for full day kindergarten. A school corporation
             or charter school that is awarded a grant must provide to the department of education
             a financial report stating how the funds were spent. Any unspent funds at the end


             of the biennium must be returned to the state by the school corporation or charter
             school.
    
             To provide full day kindergarten programs, a school corporation or charter school
             that determines there is inadequate space to offer a program in the school corporation's
             or charter school's existing facilities may offer the program in any suitable space
             located within the geographic boundaries of the school corporation or, in the case of
             a charter school, a location that is in the general vicinity of the charter school's
             existing facilities. A full day kindergarten program offered by a school corporation
             or charter school must meet the academic standards and other requirements of IC 20.
    
             A school corporation or charter school that receives a grant must meet the academic
             standards and other requirements of IC 20.

             In awarding grants from the above appropriations, the department of education may
             not refuse to make a grant to a school corporation or reduce the award that would
             otherwise be made to the school corporation because the school corporation used
             federal grants or loans, including Title I grants, to fund part or all of the school
             corporation's full day kindergarten program in a school year before the school year
             in which the grant will be given or because the school corporation intends to use
             federal grants or loans, including Title I grants, to fund part of the school corporation's
             full day kindergarten program in a school year in which the grant will be given.
    
             The state board and department shall provide support to school corporations and
             charter schools in the development and implementation of child centered and learning
             focused programs using the following methods:
                 (1) Targeting professional development funds to provide teachers in kindergarten
                 through grade 3 education in:
                     (A) scientifically proven methods of teaching reading;
                     (B) the use of data to guide instruction; and
                     (C) the use of age appropriate literacy and mathematics assessments.
                 (2) Making uniform, predictively valid, observational assessments that:
                     (A) provide frequent information concerning the student's progress to
                     the student's teacher; and
                     (B) measure the student's progress in literacy;
                 available to teachers in kindergarten through grade 3. Teachers shall monitor
                 students participating in a program, and the school corporation or charter school
                 shall report the results of the assessments to the parents of a child completing
                 an assessment and to the department.
                 (3) Undertaking a longitudinal study of students in programs in Indiana to
                 determine the achievement levels of the students in kindergarten and later
                 grades.
    
             The school corporation or charter school may use any funds otherwise allowable
             under state and federal law, including the school corporation's general fund, any


             funds available to the charter school, or voluntary parent fees, to provide full day
             kindergarten programs.
    
                 TESTING AND REMEDIATION
                         Total Operating Expense              46,229,643     46,229,643
    
             The above appropriations for testing and remediation include funds for graduation
             exam remediation, the advanced placement program, the College Board or ACT
             program, and other testing designed to measure college and career readiness
             as selected by the department of education. The appropriations for the advanced
             placement program and College Board or ACT program are to provide funding for
             students of accredited public and nonpublic schools.
    
             Prior to notification of local school corporations of the formula and components
             of the formula for distributing funds for remediation and graduation exam remediation,
             review and approval of the formula and components shall be made by the budget agency.
    
             The above appropriation for testing and remediation shall be used by school
             corporations to provide remediation programs for students who attend public and
             nonpublic schools. For purposes of tuition support, these students are not to be
             counted in the average daily membership. Of the above appropriation for testing
             and remediation, $500,000 each year shall be used for ACT/SAT test preparation.

                 NON-ENGLISH SPEAKING PROGRAM
                         Other Operating Expense              5,000,000     5,000,000

             The above appropriations for the Non-English Speaking Program are for pupils
             who have a primary language other than English and limited English proficiency,
             as determined by using a standard proficiency examination that has been approved
             by the department of education.
    
             The grant amount is two hundred dollars ($200) per pupil. It is the intent of the
             2011 general assembly that the above appropriations for the Non-English Speaking
             Program shall be the total allowable state expenditure for the program. If the expected
             distributions are anticipated to exceed the total appropriations for the state fiscal
             year, the department of education shall reduce each school corporation's distribution
             proportionately.
    
                 GIFTED AND TALENTED EDUCATION PROGRAM
                         Personal Services              63,349     63,349
                         Other Operating Expense              12,484,747     12,484,747
    
                 DISTRIBUTION FOR ADULT VOCATIONAL EDUCATION
                         Total Operating Expense              212,500     212,500
    


             The distribution for adult career and technical education programs shall be made
             in accordance with the state plan for vocational education.
    
                 EXCELLENCE IN PERFORMANCE AWARDS FOR TEACHERS
                         Total Operating Expense              6,000,000     9,000,000
    
             The above appropriations may only be used to make grants to school corporations
             and charter schools to be used to make cash awards to effective and highly effective
             teachers. The department shall develop a program to administer the program. The
             program shall include guidelines that permit all school corporations and charter
             schools to apply for a grant. The guidelines must specify that in order to receive
             a grant a school must have a system of performance evaluations that meets the
             requirements of IC 20-28-11.5. The above funds are available for allotment by the
             budget agency after review by the budget committee.
    
                 PRIMETIME
                         Personal Services              94,115     94,115
                         Other Operating Expense              70,415     70,415
                 DRUG FREE SCHOOLS
                         Total Operating Expense              56,656     56,656
                 INNOVATION FUND
                         Other Operating Expense              2,500,000     2,500,000

             The foregoing appropriation may be used for the Woodrow Wilson teaching fellowship
             program for new math and science teachers in underserved areas and to support start-up
             costs to establish New Tech high schools in Indiana. In addition, the above appropriation
             includes $50,000 each state fiscal year for the Center for Evaluation and Education Policy.

                 ALTERNATIVE EDUCATION
                         Total Operating Expense              6,382,909     6,382,909
    
             The above appropriation includes funding to provide $5,000 for each child attending
             a charter school operated by an accredited hospital specializing in the treatment of
             alcohol or drug abuse. This funding is in addition to tuition support for the charter
             school.
    
             The foregoing appropriation for alternative education may be used for dropout prevention
             defined under IC 20-20-37.
    
                 SENATOR DAVID C. FORD EDUCATIONAL TECHNOLOGY PROGRAM (IC 20-20-13)
                     Build Indiana Fund (IC 4-30-17)
                         Total Operating Expense              3,428,969     3,428,969
    
             The department shall use the funds to make grants to school corporations to promote
             student learning through the use of technology. Notwithstanding distribution guidelines


             in IC 20-20-13, the department shall develop guidelines for distribution of the grants.
             Up to $200,000 may be used each year to support the operation of the office of the
             special assistant to the superintendent of public instruction for technology.
    
                 PROFESSIONAL STANDARDS DIVISION
                     From the General Fund
                             2,766,038     2,766,038
                     From the Professional Standards Fund (IC 20-28-2-10)
                             86,159     86,159
                     Augmentation allowed.
    
             The amounts specified from the General Fund and the Professional Standards Fund
             are for the following purposes:
    
                         Personal Services              1,566,944     1,566,944
                         Other Operating Expense              1,285,253     1,285,253
    
             The above appropriations for the Professional Standards Division do not include
             funds to pay stipends for mentor teachers.
    
             FOR THE INDIANA STATE TEACHERS' RETIREMENT FUND
                 POSTRETIREMENT PENSION INCREASES
                         Other Operating Expense              65,286,000     67,248,000
    
             The appropriations for postretirement pension increases are made for those benefits
             and adjustments provided in IC 5-10.4 and IC 5-10.2-5.

                 TEACHERS' RETIREMENT FUND DISTRIBUTION
                         Other Operating Expense              660,114,000     679,952,000
                     Augmentation allowed.

             If the amount actually required under the pre-1996 account of the teachers' retirement
             fund for actual benefits for the Post Retirement Pension Increases that are funded
             on a "pay as you go" basis plus the base benefits under the pre-1996 account of the
             teachers' retirement fund is:
                 (1) greater than the above appropriations for a year, after notice to the governor
                 and the budget agency of the deficiency, the above appropriation for the year shall
                 be augmented from the general fund. Any augmentation shall be included in the
                 required pension stabilization calculation under IC 5-10.4; or
                 (2) less than the above appropriations for a year, the excess shall be retained in the
                 general fund. The portion of the benefit funded by the annuity account and the
                 actuarially funded Post Retirement Pension Increases shall not be part of this
                 calculation.
    
             C. OTHER EDUCATION


    
             FOR THE EDUCATION EMPLOYMENT RELATIONS BOARD
                         Personal Services              1,247,479     1,247,479
                         Other Operating Expense              296,868     296,868
                     Augmentation allowed.
    
             FOR THE STATE LIBRARY
                         Personal Services              2,465,118     2,465,118
                         Other Operating Expense              459,140     459,140
                 STATEWIDE LIBRARY SERVICES
                         Total Operating Expense              1,354,478     1,354,478
    
             The foregoing appropriations for statewide library services will be used to provide
             services to libraries across the state. These services may include, but will not be limited
             to, programs including Wheels, I*Ask, and professional development. The state library
             shall identify statewide library services that are to be provided by a vendor. Those
             services identified by the library shall be procured through a competitive process
             using one (1) or more requests for proposals covering the service.
    
                 LIBRARY SERVICES FOR THE BLIND - ELECTRONIC NEWSLINES
                         Other Operating Expense              36,000     36,000
                 ACADEMY OF SCIENCE
                         Total Operating Expense              7,489     7,489
    
             FOR THE ARTS COMMISSION
                         Personal Services              429,822     429,822
                         Other Operating Expense              2,292,191     2,292,191
    
             The foregoing appropriation to the arts commission includes $325,000 each year to
             provide grants under IC 4-23-2.5 to:
             (1) the arts organizations that have most recently qualified for general operating
             support as major arts organizations as determined by the arts commission;
             and
             (2) the significant regional organizations that have most recently qualified for
             general operating support as mid-major arts organizations, as determined by the
             arts commission and its regional re-granting partners.
    
             FOR THE HISTORICAL BUREAU
                         Personal Services              307,336     307,336
                         Other Operating Expense              8,468     8,468
                 HISTORICAL MARKER PROGRAM
                         Total Operating Expense                        21,628
    
             FOR THE COMMISSION ON PROPRIETARY EDUCATION
                         Personal Services              250,622     250,622
                         Other Operating Expense              22,928     22,928
    
         SECTION 10. [EFFECTIVE JULY 1, 2011]
    
             DISTRIBUTIONS
    
             FOR THE AUDITOR OF STATE
    
                 GAMING TAX
                         Total Operating Expense              161,500,000     161,500,000
    
         SECTION 11. [EFFECTIVE JULY 1, 2011]
    
             The following allocations of federal funds are available for career and technical
             education under the Carl D. Perkins Career and Technical Education Act of 2006
             (20 U.S.C. 2301 et seq. for Career and Technical Education). These funds shall be
             received by the state board of education, and may be allocated by the budget agency
             after consultation with the board of education and any other state agencies, commissions,
             or organizations required by state law. Funds shall be allocated to these agencies
             in accordance with the allocations specified below:
    
                 STATE PROGRAMS AND LEADERSHIP
                             2,543,246     2,533,482
                 SECONDARY VOCATIONAL PROGRAMS
                             14,238,694     14,182,825
                 POSTSECONDARY VOCATIONAL PROGRAMS
                             8,156,232     8,124,229
                 TECHNOLOGY - PREPARATION EDUCATION
                             2,463,650     2,463,650
    
         SECTION 12. [EFFECTIVE JULY 1, 2011]
    
             In accordance with IC 20-20-38, the budget agency, with the advice of the board
             of education and the budget committee, may proportionately augment or reduce
             an allocation of federal funds made under SECTION 11 of this act.
    
         SECTION 13. [EFFECTIVE JULY 1, 2011]
    
             Utility bills for the month of June, travel claims covering the period June 16 to
             June 30, payroll for the period of the last half of June, any interdepartmental
             bills for supplies or services for the month of June, and any other miscellaneous
             expenses incurred during the period June 16 to June 30 shall be charged to the
             appropriation for the succeeding year. No interdepartmental bill shall be recorded
             as a refund of expenditure to any current year allotment account for supplies or
             services rendered or delivered at any time during the preceding June period.
    
         SECTION 14. [EFFECTIVE JULY 1, 2011]
    
             The budget agency, under IC 4-10-11, IC 4-12-1-13, and IC 4-13-1, in cooperation
             with the Indiana department of administration, may fix the amount of reimbursement
             for traveling expenses (other than transportation) for travel within the limits of Indiana.
             This amount may not exceed actual lodging and miscellaneous expenses incurred. A
             person in travel status, as defined by the state travel policies and procedures established
             by the Indiana department of administration and the budget agency, is entitled to a meal
             allowance not to exceed during any twenty-four (24) hour period the standard meal
             allowances established by the federal Internal Revenue Service.
    
             All appropriations provided by this act or any other statute, for traveling and
             hotel expenses for any department, officer, agent, employee, person, trustee, or
             commissioner, are to be used only for travel within the state of Indiana, unless
             those expenses are incurred in traveling outside the state of Indiana on trips that
             previously have received approval as required by the state travel policies and
             procedures established by the Indiana department of administration and the budget
             agency. With the required approval, a reimbursement for out-of-state travel expenses
             may be granted in an amount not to exceed actual lodging and miscellaneous expenses
             incurred. A person in travel status is entitled to a meal allowance not to exceed during
             any twenty-four (24) hour period the standard meal allowances established by the
             federal Internal Revenue Service for properly approved travel within the continental
             United States and a minimum of $50 during any twenty-four (24) hour period for
             properly approved travel outside the continental United States. However, while
             traveling in Japan, the minimum meal allowance shall not be less than $90 for any
             twenty-four (24) hour period. While traveling in Korea and Taiwan, the minimum
             meal allowance shall not be less than $85 for any twenty-four (24) hour period.
             While traveling in Singapore, China, Great Britain, Germany, the Netherlands, and
             France, the minimum meal allowance shall not be less than $65 for any twenty-four
             (24) hour period.
    
             In the case of the state supported institutions of postsecondary education, approval
             for out-of-state travel may be given by the chief executive officer of the institution,
             or the chief executive officer's authorized designee, for the chief executive officer's
             respective personnel.
    
             Before reimbursing overnight travel expenses, the auditor of state shall require
             documentation as prescribed in the state travel policies and procedures established
             by the Indiana department of administration and the budget agency. No appropriation
             from any fund may be construed as authorizing the payment of any sum in excess of
             the standard mileage rates for personally owned transportation equipment established
             by the federal Internal Revenue Service when used in the discharge of state business.
             The Indiana department of administration and the budget agency may adopt policies
             and procedures relative to the reimbursement of travel and moving expenses of new
             state employees and the reimbursement of travel expenses of prospective employees
             who are invited to interview with the state.
    
         SECTION 15. [EFFECTIVE JULY 1, 2011]
    
             Notwithstanding IC 4-10-11-2.1, the salary per diem of members of boards, commissions,
             and councils who are entitled to a salary per diem is $50 per day. However, members of
             boards, commissions, or councils who receive an annual or a monthly salary paid by the
             state are not entitled to the salary per diem provided in IC 4-10-11-2.1.
    
         SECTION 16. [EFFECTIVE JULY 1, 2011]
    
             No payment for personal services shall be made by the auditor of state unless the
             payment has been approved by the budget agency or the designee of the budget agency.
    
         SECTION 17. [EFFECTIVE JULY 1, 2011]
    
             No warrant for operating expenses, capital outlay, or fixed charges shall be issued to
             any department or an institution unless the receipts of the department or institution
             have been deposited into the state treasury for the month. However, if a department or
             an institution has more than $10,000 in daily receipts, the receipts shall be deposited
             into the state treasury daily.
    
         SECTION 18. [EFFECTIVE JULY 1, 2011]
    
             In case of loss by fire or any other cause involving any state institution or department,
             the proceeds derived from the settlement of any claim for the loss shall be deposited in
             the state treasury, and the amount deposited is hereby reappropriated to the institution
             or department for the purpose of replacing the loss. If it is determined that the loss shall
             not be replaced, any funds received from the settlement of a claim shall be deposited
             into the state general fund.
    
         SECTION 19. [EFFECTIVE JULY 1, 2011]
    
             If an agency has computer equipment in excess of the needs of that agency, then the
             excess computer equipment may be sold under the provisions of surplus property sales,
             and the proceeds of the sale or sales shall be deposited in the state treasury. The amount
             so deposited is hereby reappropriated to that agency for other operating expenses of the
             then current year, if approved by the director of the budget agency.
    
         SECTION 20. [EFFECTIVE JULY 1, 2011]

             If any state penal or benevolent institution other than the Indiana state prison,
             Pendleton correctional facility, or Putnamville correctional facility shall, in the
             operation of its farms, produce products or commodities in excess of the needs of


             the institution, the surplus may be sold through the division of industries and farms,
             the director of the supply division of the Indiana department of administration, or both.
             The proceeds of any such sale or sales shall be deposited in the state treasury. The
             amount deposited is hereby reappropriated to the institution for expenses of the
             then current year if approved by the director of the budget agency. The exchange
             between state penal and benevolent institutions of livestock for breeding purposes
             only is hereby authorized at valuations agreed upon between the superintendents or
             wardens of the institutions. Capital outlay expenditures may be made from the
             institutional industries and farms revolving fund if approved by the budget agency
             and the governor.
    
         SECTION 21. [EFFECTIVE JULY 1, 2011]
    
             This act does not authorize any rehabilitation and repairs to any state buildings,
             nor does it allow that any obligations be incurred for lands and structures, without
             the prior approval of the budget director or the director's designee. This SECTION
             does not apply to contracts for the state universities supported in whole or in part
             by state funds.
    
         SECTION 22. [EFFECTIVE JULY 1, 2011]
    
             If an agency has an annual appropriation fixed by law, and if the agency also receives
             an appropriation in this act for the same function or program, the appropriation in
             this act supersedes any other appropriations and is the total appropriation for the
             agency for that program or function.
    
         SECTION 23. [EFFECTIVE JULY 1, 2011]
    
             The balance of any appropriation or funds heretofore placed or remaining to the
             credit of any division of the state of Indiana, and any appropriation or funds provided
             in this act placed to the credit of any division of the state of Indiana, the powers,
             duties, and functions whereof are assigned and transferred to any department for
             salaries, maintenance, operation, construction, or other expenses in the exercise
             of such powers, duties, and functions, shall be transferred to the credit of the
             department to which such assignment and transfer is made, and the same shall be
             available for the objects and purposes for which appropriated originally.
    
         SECTION 24. [EFFECTIVE JULY 1, 2011]
    
             The director of the division of procurement of the Indiana department of administration,
             or any other person or agency authorized to make purchases of equipment, shall not
             honor any requisition for the purchase of an automobile that is to be paid for from any
             appropriation made by this act or any other act, unless the following facts are shown
             to the satisfaction of the commissioner of the Indiana department of administration or
             the commissioner's designee:
             (1) In the case of an elected state officer, it shall be shown that the duties of the
             office require driving about the state of Indiana in the performance of official duty.
             (2) In the case of department or commission heads, it shall be shown that the statutory
             duties imposed in the discharge of the office require traveling a greater distance
             than one thousand (1,000) miles each month or that they are subject to official duty
             call at all times.
             (3) In the case of employees, it shall be shown that the major portion of the duties
             assigned to the employee require travel on state business in excess of one thousand
             (1,000) miles each month, or that the vehicle is identified by the agency as an integral
             part of the job assignment.
    
             In computing the number of miles required to be driven by a department head or an
             employee, the distance between the individual's home and office or designated official
             station is not to be considered as a part of the total. Department heads shall annually
             submit justification for the continued assignment of each vehicle in their department,
             which shall be reviewed by the commissioner of the Indiana department of administration,
             or the commissioner's designee. There shall be an insignia permanently affixed on
             each side of all state owned cars, designating the cars as being state owned. However,
             this requirement does not apply to state owned cars driven by elected state officials
             or to cases where the commissioner of the Indiana department of administration or
             the commissioner's designee determines that affixing insignia on state owned cars
             would hinder or handicap the persons driving the cars in the performance of their
             official duties.
    
         SECTION 25. [EFFECTIVE JULY 1, 2011]
    
             When budget agency approval or review is required under this act, the budget agency
             may refer to the budget committee any budgetary or fiscal matter for an advisory
             recommendation. The budget committee may hold hearings and take any actions
             authorized by IC 4-12-1-11, and may make an advisory recommendation to the budget
             agency.
    
         SECTION 26. [EFFECTIVE JULY 1, 2011]
    
             The governor of the state of Indiana is solely authorized to accept on behalf of the
             state any and all federal funds available to the state of Indiana. Federal funds
             received under this SECTION are appropriated for purposes specified by the federal
             government, subject to allotment by the budget agency. The provisions of this
             SECTION and all other SECTIONS concerning the acceptance, disbursement,
             review, and approval of any grant, loan, or gift made by the federal government
             or any other source to the state or its agencies and political subdivisions shall
             apply, notwithstanding any other law.
    
         SECTION 27. [EFFECTIVE JULY 1, 2011]
    
             Federal funds received as revenue by a state agency or department are not available
             to the agency or department for expenditure until allotment has been made by the
             budget agency under IC 4-12-1-12(d).
    
         SECTION 28. [EFFECTIVE JULY 1, 2011]
    
             A contract or an agreement for personal services or other services may not be
             entered into by any agency or department of state government without the approval
             of the budget agency or the designee of the budget director.
    
         SECTION 29. [EFFECTIVE JULY 1, 2011]
    
             Except in those cases where a specific appropriation has been made to cover the
             payments for any of the following, the auditor of state shall transfer, from the
             personal services appropriations for each of the various agencies and departments,
             necessary payments for Social Security, public employees' retirement, health
             insurance, life insurance, and any other similar payments directed by the budget
             agency.
    
         SECTION 30. [EFFECTIVE JULY 1, 2011]
    
             Subject to SECTION 25 of this act as it relates to the budget committee, the budget
             agency with the approval of the governor may withhold allotments of any or all
             appropriations contained in this act for the 2011-2013 biennium, if it is considered
             necessary to do so in order to prevent a deficit financial situation.
    
         SECTION 31. [EFFECTIVE JULY 1, 2011]
    
             CONSTRUCTION
    
             For the 2011-2013 biennium, the following amounts, from the funds listed as follows,
             are hereby appropriated to provide for the construction, reconstruction, rehabilitation,
             repair, purchase, rental, and sale of state properties, capital lease rentals, and the
             purchase and sale of land, including equipment for such properties and other projects
             as specified.
    
                     State General Fund - Lease Rentals
                             465,097,245
                     State General Fund - Construction
                             66,950,840
                     State Police Building Commission Fund (IC 9-29-1-4)
                             5,012,998
                     Law Enforcement Academy Building Fund (IC 5-2-1-13(a))
                             830,727
                     Cigarette Tax Fund (IC 6-7-1-29.1)
                             3,600,000
                     Veterans' Home Building Fund (IC 10-17-9-7)
                             6,739,557
                     Postwar Construction Fund (IC 7.1-4-8-1)
                             34,798,599
                     Regional Health Care Construction Account (IC 4-12-8.5)
                             21,861,105
                     Build Indiana Fund (IC 4-30-17)
                             3,400,000
                     State Highway Fund (IC 8-23-9-54)
                             25,000,000

                 TOTAL    633,291,071               

             The allocations provided under this SECTION are made from the state general fund,
             unless specifically authorized from other designated funds by this act. The budget
             agency, with the approval of the governor, in approving the allocation of funds pursuant
             to this SECTION, shall consider, as funds are available, allocations for the following
             specific uses, purposes, and projects:
    
             A. GENERAL GOVERNMENT
    
             FOR THE STATE BUDGET AGENCY
                         Health and Safety Contingency Fund                   5,000,000
                         Aviation Technology Center                   2,222,863
                         Airport Facilities Lease                        43,778,704
                         Stadium Lease Rental                        172,762,732
                         Convention Center Lease Rental                   50,323,534
    
                 DEPARTMENT OF ADMINISTRATION - PROJECTS
                         Preventive Maintenance                        7,841,835
                         Repair and Rehabilitation                        1,121,250
                 DEPARTMENT OF ADMINISTRATION - LEASES
                     General Fund
                         Lease - Government Center North                   33,875,765
                         Lease - Government Center South                   25,923,323
                         Lease - State Museum                        16,037,296
                         Lease - McCarty Street Warehouse                   1,564,000
                         Lease - Parking Garages                        7,367,193
                         Lease - Toxicology Lab                        10,424,212
                         Lease - Wabash Valley Correctional                   16,879,348
                         Lease - Miami Correctional                        47,549,595
                         Lease - Pendleton Juvenile Correctional                   9,679,060
                         Lease - New Castle Correctional                   26,709,620
                     Postwar Construction Fund (IC 7.1-4-8-1)


                         Lease - Rockville Correctional                   11,160,288
                     Regional Health Care Construction Account (IC 4-12-8.5)
                         Lease - Evansville State Hospital                   6,067,971
                         Lease - Southeast Regional Treatment                   9,412,548
                         Lease - Logansport State Hospital                   6,380,586
    
             B. PUBLIC SAFETY
    
             (1) LAW ENFORCEMENT
    
                 INDIANA STATE POLICE
                     State Police Building Commission Fund (IC 9-29-1-4)
                         Preventive Maintenance                        1,266,998
                         Patrol Vehicles                        3,000,000
                         Repair and Rehabilitation                        746,000
                 LAW ENFORCEMENT TRAINING BOARD
                     Law Enforcement Academy Building Fund (IC 5-2-1-13(a))
                         Preventive Maintenance                        330,727
                         Repair and Rehabilitation                        500,000
                 ADJUTANT GENERAL
                         Preventive Maintenance                        250,000
    
             (2) CORRECTIONS
    
                 DEPARTMENT OF CORRECTION - PROJECTS
                         Preventive Maintenance                        76,828
                 STATE PRISON
                         Preventive Maintenance                        954,492
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        3,498,000
                 PENDLETON CORRECTIONAL FACILITY
                         Preventive Maintenance                        1,257,064
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        3,715,000
                 WOMEN'S PRISON
                         Preventive Maintenance                        322,804
                     Postwar Construction Fund (IC 7.1-4-8-1)
                          Repair and Rehabilitation                        212,500
                 NEW CASTLE CORRECTIONAL FACILITY
                         Preventive Maintenance                        350,388
                     Postwar Construction Fund (IC 7.1-4-8-1)
                          Repair and Rehabilitation                        365,000
                 PUTNAMVILLE CORRECTIONAL FACILITY
                         Preventive Maintenance                        864,822
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Construct New Fire Station                        250,000
                         Repair and Rehabilitation                        1,570,000
                 INDIANAPOLIS RE-ENTRY EDUCATION FACILITY
                         Preventive Maintenance                        538,832
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        291,000
                 BRANCHVILLE CORRECTIONAL FACILITY
                         Preventive Maintenance                        272,932
                 WESTVILLE CORRECTIONAL FACILITY
                         Preventive Maintenance                        806,330
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        2,300,000
                 ROCKVILLE CORRECTIONAL FACILITY
                         Preventive Maintenance                        357,296
                 PLAINFIELD CORRECTIONAL FACILITY
                         Preventive Maintenance                        663,704
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        966,000
                 RECEPTION AND DIAGNOSTIC CENTER
                         Preventive Maintenance                        214,464
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Fire Egress Stairwells                        400,000
                         Repair and Rehabilitation                        342,000
                 CORRECTIONAL INDUSTRIAL FACILITY
                         Preventive Maintenance                        584,172
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        1,026,000
                 WABASH VALLEY CORRECTIONAL FACILITY
                         Preventive Maintenance                        608,820
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        160,000
                 CHAIN O' LAKES CORRECTIONAL FACILITY
                         Preventive Maintenance                        76,828
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Construct New Maintenance Building                   180,000
                         Construct New Dormitory                        320,000
                 MADISON CORRECTIONAL FACILITY
                         Preventive Maintenance                        1,000,000
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        90,000
                 MIAMI CORRECTIONAL FACILITY
                         Preventive Maintenance                        664,560
                 CAMP SUMMIT CORRECTIONAL FACILITY
                         Preventive Maintenance                        200,000
                 EDINBURGH CORRECTIONAL FACILITY
                         Preventive Maintenance                        200,000
                 HENRYVILLE CORRECTIONAL FACILITY
                         Preventive Maintenance                        100,000
                 PENDLETON JUVENILE CORRECTIONAL FACILITY
                         Preventive Maintenance                        228,738
                 NORTH CENTRAL JUVENILE CORRECTIONAL FACILITY
                         Preventive Maintenance                        200,000
                 SOUTH BEND JUVENILE CORRECTIONAL FACILITY
                         Preventive Maintenance                        134,280
    
             C. CONSERVATION AND ENVIRONMENT
    
                 DEPARTMENT OF NATURAL RESOURCES - GENERAL ADMINISTRATION
                         Preventive Maintenance                        206,400
                         Repair and Rehabilitation                        697,500
                 FISH AND WILDLIFE
                         Preventive Maintenance                        2,679,158
                         Repair and Rehabilitation                        1,020,000
                 FORESTRY
                         Preventive Maintenance                        2,087,400
                         Repair and Rehabilitation                        1,636,000
                 MUSEUMS AND HISTORIC SITES
                         Preventive Maintenance                        881,650
                         Repair and Rehabilitation                        1,117,317
                 NATURE PRESERVES
                         Preventive Maintenance                        229,500
                         Repair and Rehabilitation                        818,972
                 OUTDOOR RECREATION
                         Preventive Maintenance                        52,000
                         Repair and Rehabilitation                        238,645
                 STATE PARKS AND RESERVOIR MANAGEMENT
                         Preventive Maintenance                        3,079,350
                         Repair and Rehabilitation                        10,574,996
                         State Parks Bond Payments                        941,028
                         Falls of the Ohio Lease                        364,000
                     Cigarette Tax Fund (IC 6-7-1-29.1)
                         Preventive Maintenance                        3,600,000
                 DIVISION OF WATER
                         Preventive Maintenance                        155,000
                         Repair and Rehabilitation                        4,064,000
                 ENFORCEMENT
                         Preventive Maintenance                        457,660
                         Repair and Rehabilitation                        435,574
                 STATE MUSEUM
                         Preventive Maintenance                        763,428
                 ENTOMOLOGY
                         Repair and Rehabilitation                        500,000
                 WAR MEMORIALS COMMISSION
                         Preventive Maintenance                        1,234,000
                         Repair and Rehabilitation                        1,142,000
                 KANKAKEE RIVER BASIN COMMISSION
                     Build Indiana Fund (IC 4-30-17)
                         Repair and Rehabilitation                        1,000,000
    
             D. TRANSPORTATION
    
                 DEPARTMENT OF TRANSPORTATION
                     State Highway Fund (IC 8-23-9-54)
                         Buildings and Grounds                        25,000,000
    
             The above appropriations for highway buildings and grounds may be used for land
             acquisition, site development, construction and equipping of new highway facilities
             and for maintenance, repair, and rehabilitation of existing state highway facilities
             after review by the budget committee.
    
                 AIRPORT DEVELOPMENT
                     Build Indiana Fund (IC 4-30-17)
                         Airport Development                        2,400,000
    
             The foregoing allocation for the Indiana department of transportation is for airport
             development and shall be used for the purpose of assisting local airport authorities
             and local units of governments in matching available federal funds under the airport
             improvement program and for matching federal grants for airport planning and for
             the other airport studies. Matching grants of aid shall be made in accordance with
             the approved annual capital improvements program of the Indiana department of
             transportation and with the approval of the governor and the budget agency.

         E. FAMILY AND SOCIAL SERVICES, HEALTH, AND VETERANS' AFFAIRS
    
             (1) FAMILY AND SOCIAL SERVICES ADMINISTRATION
    
                 FSSA - DIVISION OF MENTAL HEALTH
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        1,800,000
                 EVANSVILLE PSYCHIATRIC CHILDREN'S CENTER
                         Preventive Maintenance                        45,000
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Generator                        121,000
                         Sprinkler System                        96,800
                         Repair and Rehabilitation                        102,916


                 EVANSVILLE STATE HOSPITAL
                         Preventive Maintenance                        783,925
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Security/Surveillance Cameras                   680,000
                         Repair and Rehabilitation                        245,500
                 MADISON STATE HOSPITAL
                         Preventive Maintenance                        928,208
                 LOGANSPORT STATE HOSPITAL
                         Preventive Maintenance                        863,144
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        591,700
                 RICHMOND STATE HOSPITAL
                         Preventive Maintenance                        1,100,000
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        1,681,852
                 LARUE CARTER MEMORIAL HOSPITAL
                         Preventive Maintenance                        1,833,118
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        1,010,000
    
             (2) PUBLIC HEALTH
    
                 SCHOOL FOR THE BLIND AND VISUALLY IMPAIRED
                         Preventive Maintenance                        565,714
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        750,320
                 SCHOOL FOR THE DEAF
                         Preventive Maintenance                        565,714
                     Postwar Construction Fund (IC 7.1-4-8-1)
                         Repair and Rehabilitation                        872,723
    
             (3) VETERANS' AFFAIRS
    
                 INDIANA VETERANS' HOME
                     Veterans' Home Building Fund (IC 10-17-9-7)
                         Preventive Maintenance                        1,500,000
                         Repair and Rehabilitation                        5,239,557
    
         SECTION 32. [EFFECTIVE JULY 1, 2011]
    
             The budget agency may employ one (1) or more architects or engineers to inspect
             construction, rehabilitation, and repair projects covered by the appropriations in
             this act or previous acts.
    
         SECTION 33. [EFFECTIVE UPON PASSAGE]
    
             If any part of a construction or rehabilitation and repair appropriation made by this
             act or any previous acts has not been allotted or encumbered before the expiration
             of the two-year budget period (as defined in IC 4-12-1-2), the budget agency may
             determine that the balance of the appropriation is not available for allotment.
             The appropriation may be terminated, and the balance may revert to the fund from
             which the original appropriation was made.
    
         SECTION 34. [EFFECTIVE JULY 1, 2011]
    
             The budget agency may retain balances in the mental health fund at the end of any
             fiscal year to ensure there are sufficient funds to meet the service needs of the
             developmentally disabled and the mentally ill in any year.
    
         SECTION 35. [EFFECTIVE JULY 1, 2011]
    
             If the budget director determines at any time during the biennium that the executive
             branch of state government cannot meet its statutory obligations due to insufficient
             funds in the general fund, then notwithstanding IC 4-10-18, the budget agency, with
             the approval of the governor and after review by the budget committee, may transfer
             from the counter-cyclical revenue and economic stabilization fund to the general
             fund any additional amount necessary to maintain a positive balance in the general
             fund.
    SECTION 36. [EFFECTIVE JULY 1, 2011] (a) The budget agency shall require reversions of:
        (1) thirty million dollars ($30,000,000) to be made from state general fund appropriations in the state fiscal year ending June 30, 2012; and
        (2) thirty million dollars ($30,000,000) to be made from state general fund appropriations in the state fiscal year ending June 30, 2013.
    (b) This SECTION expires July 1, 2013.

SOURCE: IC 2-2.1-4; (11)PD4580.2. -->     SECTION 37. IC 2-2.1-4 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 4. Quorum Breaking
    Sec. 1. This chapter does not apply to a day that a member:
        (1) is excused by the member's presiding officer; or
        (2) has a verified illness or injury diagnosed by a physician holding an unlimited license to practice medicine that prevents the member from attending session.
    Sec. 2. As used in this chapter, "body" refers to either of the following:
        (1) The house of representatives.
        (2) The senate.
    Sec. 3. As used in this chapter, "chamber" refers to either of the following:
        (1) The floor of the house of representatives.
        (2) The floor of the senate.
    Sec. 4.    As used in this chapter, "final day of session" means:
        (1) April 29 in odd-numbered years and March 14 in even-numbered years; or
        (2) a date earlier than April 29 in odd-numbered years and March 14 in even-numbered years,

if the presiding officers of each body have:
            (A) jointly agreed; and
            (B) publicly announced;
        that the earlier date will be the final day of session.
    Sec. 5. As used in this chapter, "member" refers to either of the following:
        (1) A member of the house of representatives.
        (2) A member of the senate.
    Sec. 6. As used in this chapter, "presiding officer" refers to the following:
        (1) For the house of representatives, the speaker of the house of representatives.
        (2) For the senate, the president pro tempore of the senate.
    Sec. 7. (a) Except during the final day of session or during a special session, this section does not apply to an absence of fewer than three (3) consecutive session days, regardless of the reason for the absence.
    (b) Except as provided in subsection (d), a member who is absent from the member's chamber with the result that the member's body is unable to form a quorum commits the act of legislative bolting and is liable for a civil penalty.
    (c) If a member's body is unable to form a quorum, the member's absence from the chamber at the time of a quorum call constitutes prima facie evidence that the member committed legislative bolting.
    (d) A member who proves by a preponderance of the evidence that the member's absence from the member's chamber was not carried out with the intent to defeat, delay, or obstruct legislative action has not committed legislative bolting and is not liable for a civil penalty.
    Sec. 8. (a) A presiding officer, on behalf of the presiding officer's body, may bring an action for legislative bolting against a member. The presiding officer has the authority to control the litigation, including final settlement authority.
    (b) The presiding officer who brings an action for legislative bolting must show by a preponderance of the evidence that the member has violated section 7 of this chapter. A prevailing presiding officer is entitled to the following:
        (1) An order imposing a civil penalty of one thousand dollars ($1,000) for each day the member has violated section 7 of this chapter.
        (2) Reasonable attorney's fees and court costs.
    (c) A civil penalty imposed under this section shall be paid to the state general fund.
    Sec. 9. Venue for an action brought under this chapter is in Marion County.
    Sec. 10. A penalty imposed under this chapter on a member who violates section 7 of this chapter is in addition to any penalties imposed by the member's body under the Constitution of the State of Indiana or the rules adopted by the member's chamber.

SOURCE: IC 2-3-1-1; (11)PD4580.3. -->     SECTION 38. IC 2-3-1-1, AS AMENDED BY P.L.43-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Except as provided in subsection (c), the annual salary of the members of the general assembly shall be the following:
        (1) Before 2009, eleven thousand six hundred dollars ($11,600).
        (2) In 2009 and thereafter, an amount equal to eighteen percent (18%) of the annual salary of a judge under IC 33-38-5-6, as adjusted under IC 33-38-5-8.1.
    (b) One-half (1/2) the annual salary shall be paid on the fifteenth day of January, and one-half (1/2) the annual salary shall be paid on the fifteenth day of February.
     (c) Notwithstanding any other law, the annual salary of the members of the general assembly

shall not be increased during the state fiscal year beginning July 1, 2011, or during the state fiscal year beginning July 1, 2012, regardless of any increase in the annual salary of a judge under IC 33-38-5-6, as adjusted under IC 33-38-5-8.1.

SOURCE: IC 2-5-34; (11)PD4580.4. -->     SECTION 39. IC 2-5-34 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 34. Interim Study Committee on Employment Issues
    Sec. 1. As used in this chapter, "committee" refers to the interim study committee on employment issues established by section 2 of this chapter.
    Sec. 2. The interim study committee on employment issues is established.
    Sec. 3. (a)
Except as provided in this chapter, the committee shall operate under the policies governing study committees adopted by the legislative council.
    (b) The committee consists of nine (9) members, who shall be appointed as follows:
        (1) Two (2) members of the senate, appointed by the president pro tempore of the senate.
        (2) Two (2) members of the senate, appointed by the minority leader of the senate.
        (3) Two (2) members of the house of representatives, appointed by the speaker of the house of representatives.

        (4) Two (2) members of the house of representatives, appointed by the minority leader of the house of representatives.
         (5) One (1) member of the general assembly, appointed by the chairman of the legislative council.
    (c) The member appointed under subsection (b)(5) shall serve as chairman of the committee.
    Sec. 4. The affirmative votes of a majority of the voting members appointed to the committee are required for the committee to take action on any measure, including final reports.
    Sec. 5. The committee shall study and make recommendations to the legislative council concerning the following:
        (1) Laws related to the issue of whether or not an employee should be required to join an employee organization as a condition of employment.
        (2) Project labor agreements.
    Sec. 6. Before November 1, 2011, the committee shall issue a final report to the legislative council containing the findings and recommendations of the committee.
    Sec. 7. This chapter expires December 31, 2011.

SOURCE: IC 2-7-1-18; (11)PD4580.5. -->     SECTION 40. IC 2-7-1-18 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 18. "Reporting year" means the period from November 1 of the immediately preceding calendar year through October 31 of the following calendar year.
SOURCE: IC 2-7-5-9; (11)PD4580.6. -->     SECTION 41. IC 2-7-5-9, AS ADDED BY P.L.58-2010, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE NOVEMBER 1, 2010 (RETROACTIVE)]: Sec. 9. (a) This section does not apply to the following:
        (1) Expenses associated with travel outside Indiana for any purpose that is paid for by an organization or corporation of which the legislative person or the legislative person's spouse is an officer, member of the board of directors, employee, or independent contractor.
        (2) Travel expenses of a legislative person attending a public policy meeting if:
            (A) the legislative person's sole purpose for attending the meeting is to serve as a speaker or other key participant in the meeting; and
            (B) the speaker of the house of representatives or the president pro tempore of the senate

approves the payment of the travel expenses in writing.
    (b) As used in this section, "travel expenses" includes expenses for transportation, lodging, meals, registration fees, and other expenses associated with travel.
    (c) Except as provided in subsection (a), a lobbyist may not pay for or reimburse for travel expenses of a legislative person for travel outside Indiana for any purpose.

SOURCE: IC 4-4-11-15.7; (11)PD4580.7. -->     SECTION 42. IC 4-4-11-15.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15.7. (a) This section does not apply to any indebtedness issued by the authority if:
        (1) the proceeds will be used for a project that has been specifically authorized by the general assembly; or
        (2) the indebtedness is authorized under the affected statutes.
    (b) Notwithstanding any other law in effect before:
        (1) the authority issues indebtedness that establishes a procedure for the authority or a person acting on behalf of the authority to certify to the general assembly the amount needed to restore a debt service reserve fund or another fund to a required level; or
        (2) execution by the authority of any other agreement that creates a moral obligation of the state to pay all or any part of any indebtedness issued by the authority;
the authority is subject to, and shall comply with, to the extent practicable, the requirements set forth in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g) as if the authority was specifically named in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g).
    (c) In addition:
        (1) indebtedness described in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g) is considered a reference to an indebtedness or agreement referred to in this section; and
        (2) a qualified entity referred to in IC 5-1.5-5-4(c) through IC 5-1.5-5-4(g) is considered a reference to a borrower of any indebtedness and to any other parties referred to in this section.

SOURCE: IC 4-6-2-1; (11)PD4580.8. -->     SECTION 43. IC 4-6-2-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. (a) Such attorney-general The attorney general shall prosecute and defend all suits that may be instituted by or against the state of Indiana, the prosecution and defense of which is not otherwise provided for by law, whenever he the attorney general shall have has been given ten (10) days' notice of the pendency thereof of the suit by the clerk of the court in which such suits are the suit is pending, and or whenever the governor or a majority of the officers of state require the attorney general in writing, with reasonable notice, to prosecute or defend a suit. required by the governor or a majority of the officers of state, in writing, to be furnished him within a reasonable time; and he The attorney general shall represent the state in all criminal cases in the Supreme Court, and shall defend all suits brought against the state officers in their official relations, except suits brought against them by the state; and he shall be required to attend to the interests of the state in all suits, actions or claims in which the state is or may become interested in the Supreme Court of this state.
     (b) The attorney general may not defend a member (as defined in IC 2-2.1-4-5) in an action for legislative bolting brought under IC 2-2.1-4.
    SECTION 44. IC 4-10-22 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]:
     Chapter 22. Use of Excess Reserves
    Sec. 1. After the end of each state fiscal year, the office of management and budget shall calculate in the customary manner the total amount of state reserves as of the end of the state fiscal year. The office of management and budget shall make the calculation not later than July 31 of each year.
    Sec. 2. If the total amount of state reserves calculated by the office of management and budget exceeds ten percent (10%) of the general revenue appropriations for the current state fiscal year, and if the accounts payable by the state at the end of the preceding state fiscal year are not unusually large as a percentage of the total amount of state reserves (as compared to recent history), the governor shall make a presentation to the state budget committee regarding the disposition of excess state reserves under section 3 of this chapter. The presentation must be made not later than September 30 of the year.
    Sec. 3. After completing the presentation to the state budget committee described in section 2 of this chapter, the governor shall:
        (1) transfer fifty percent (50%) of any excess reserves to the pension stabilization fund established by IC 5-10.4-2-5 for the purposes of the pension stabilization fund; and
        (2) use fifty percent (50%) of any excess reserves for the purposes of providing an automatic taxpayer refund under section 4 of this chapter.
    Sec. 4. The following apply if sufficient excess state reserves are available to provide an automatic taxpayer refund to each taxpayer eligible for a refund:
        (1) To qualify for a refund, a taxpayer:
            (A) must have filed an Indiana resident individual adjusted gross income tax return for the preceding two (2) taxable years; and
            (B) must have paid individual adjusted gross income tax to the state for the preceding taxable year.
        Individuals who file a tax return but do not pay any individual adjusted gross income tax to the state are not entitled to a refund.
        (2) The amount of the refund is determined for each qualifying taxpayer on a pro rata basis, based on the qualifying taxpayer's portion of the total individual adjusted gross income tax liability paid by all qualifying taxpayers in the preceding taxable year.
        (3) The refund shall be applied as a credit against adjusted gross income tax liability in the taxpayer's taxable year in which a refund is provided. The credit may not be carried forward.
    Sec. 5. There is appropriated a sufficient amount in a state fiscal year to carry out this chapter.

SOURCE: IC 4-12-4-9; (11)PD4580.10. -->     SECTION 45. IC 4-12-4-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) The Indiana tobacco use prevention and cessation executive board is abolished July 1, 2011. On July 1, 2011:
        (1) all assets, obligations, powers, and duties of the executive board are transferred to the state department of health; and
        (2) all appropriations made to the Indiana tobacco use prevention and cessation executive board are transferred to the state department of health and are considered appropriations made to the state department of health.
    (b)
In addition to any other power granted by this chapter, the executive board state department of health may:
        (1) adopt an official seal and alter the seal at its pleasure;
        (2) (1) adopt rules under IC 4-22-2 for the regulation of its affairs and the conduct of its business and prescribe policies in connection with the performance of its functions and duties; to carry out this chapter;
        (3) (2) accept gifts, devises, bequests, grants, loans, appropriations, revenue sharing, other financing and assistance, and any other aid from any source and agree to and comply with conditions attached to that aid;
        (4) (3) make, execute, and effectuate any and all contracts, agreements, or other documents with any governmental agency or any person, corporation, limited liability company, association, partnership, or other organization or entity necessary or convenient to accomplish the purposes of this chapter, including contracts for the provision of all or any portion of the services the executive board state department of health considers necessary; for the management and operations of the executive board;
        (5) (4) recommend legislation to the governor and general assembly; and
        (6) (5) do any and all acts and things necessary, proper, or convenient to carry out this article. chapter.
SOURCE: IC 4-12-4-10; (11)PD4580.11. -->     SECTION 46. IC 4-12-4-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. (a) The Indiana tobacco use prevention and cessation trust fund is established. The executive board state department of health may expend money from the fund and make grants from the fund to implement the long range state plan established under this chapter. General operating and Administrative expenses of the executive board necessary to carry out this chapter are also payable from the fund.
    (b) The fund consists of:
        (1) amounts, if any, that another statute requires to be distributed to the fund from the Indiana tobacco master settlement agreement fund;
        (2) appropriations to the fund from other sources;
        (3) grants, gifts, and donations intended for deposit in the fund; and
        (4) interest that accrues from money in the fund.
    (c) The fund shall be administered by the executive board. state department of health. Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as money is invested by the public employees retirement fund under IC 5-10.3-5. The treasurer of state may contract with investment management professionals, investment advisors, and legal counsel to assist in the investment of the fund and may pay the expenses incurred under those contracts from the fund. Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    (d) All income and assets of the executive board deposited in the fund are for the use of the executive board without state department of health after appropriation.
SOURCE: IC 4-12-4-11; (11)PD4580.12. -->     SECTION 47. IC 4-12-4-11, AS AMENDED BY P.L.99-2007, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. (a) The executive board state department of health shall develop:
        (1) a mission statement concerning prevention and reduction of the usage of tobacco and tobacco products in Indiana, including:
            (A) emphasis on prevention and reduction of tobacco use by minorities, pregnant women, children, and youth, including youth with serious and emotional disturbances;
            (B) encouragement of smoking cessation;
            (C) production and distribution of information concerning the dangers of tobacco use and tobacco related diseases;
            (D) providing research on issues related to reduction of tobacco use;
            (E) enforcement of laws concerning sales of tobacco to youth and use of tobacco by youth; and
            (F) other activities that the executive board state department of health considers necessary and appropriate for inclusion in the mission statement; and
        (2) a long range state plan, based on Best Practices for Tobacco Control Programs as published by the Centers for Disease Control and Prevention, for:
            (A) the provision of services by the executive board, state department of health, public or private entities, and individuals to implement the executive board's state department of health's mission statement; and
            (B) the coordination of state efforts to reduce usage of tobacco and tobacco products.
The executive board state department of health shall update the mission statement and long range state plan as necessary to carry out the purposes of this chapter.
    (b) The long range state plan described in subsection (a) must:
        (1) cover a period of at least five (5) years;
        (2) include base line data concerning tobacco usage;
        (3) set forth specific goals for prevention and reduction of tobacco usage in Indiana; and
        (4) be made available to the governor, the general assembly, and any other appropriate state or federal agency.
SOURCE: IC 4-12-4-12; (11)PD4580.13. -->     SECTION 48. IC 4-12-4-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. A public or private entity or an individual may submit an application to the executive board state department of health for a grant from the fund. Each application must be in writing and contain the following information:
        (1) A clear objective to be achieved with the grant.
        (2) A plan for implementation of the specific program.
        (3) A statement of the manner in which the proposed program will further the goals of the executive board's state department of health's mission statement and long range state plan.
        (4) The amount of the grant requested.
        (5) An evaluation and assessment component to determine the program's performance.
        (6) Any other information required by the executive board. state department of health.
The executive board state department of health may adopt written guidelines to establish procedures, forms, additional evaluation criteria, and application deadlines.
SOURCE: IC 4-12-4-13; (11)PD4580.14. -->     SECTION 49. IC 4-12-4-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13. The expenditure of state funds (other than a grant awarded under this chapter) for a program concerning prevention or reduction of tobacco usage that is operated by a state agency or a public or private entity is subject to the approval of the executive board. state department of health. The state agency or public or private entity shall submit a description of the proposed expenditure to the executive board state department of health for the executive board's state department of health's review and approval. The description submitted under this section must include the following:
        (1) The objective to be achieved through the expenditure.
        (2) The plan for implementation of the expenditure.
        (3) The extent to which the expenditure will supplement or duplicate existing expenditures of other state agencies, public or private entities, or the executive board. state department of health.
SOURCE: IC 4-12-4-14; (11)PD4580.15. -->     SECTION 50. IC 4-12-4-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 14. The executive board state department of health shall prepare an annual financial report and an annual report concerning the executive board's state department of health's activities under this chapter and promptly transmit the annual reports to the governor and, in an electronic format under IC 5-14-6, to the legislative council. The executive board state department of health shall make the annual reports available to the public upon request.
SOURCE: IC 4-12-4-15; (11)PD4580.16. -->     SECTION 51. IC 4-12-4-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. The funds, accounts, management, and operations of the executive board state department of health under this chapter are subject to annual audit by the state board of accounts.
SOURCE: IC 4-12-4-16; (11)PD4580.17. -->     SECTION 52. IC 4-12-4-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16. (a) The Indiana tobacco use prevention and cessation advisory board is established. The board consists of:
        (1) the executive director employed under section 6 of this chapter, commissioner of the state department of health, or the commissioner's designee, who shall serve as the chairperson of the advisory board; and
        (2) other members appointed by the governor who have knowledge, skill, and experience in smoking reduction and cessation programs, health care services, or preventive health care measures.
    (b) The advisory committee shall meet at least quarterly and at the call of the chairperson.
    (c) The advisory committee shall, as considered necessary by the advisory committee or as requested by the executive board state department of health, make recommendations to the executive committee state department of health concerning:
        (1) the development and implementation of the mission statement and long range state plan under section 11 of this chapter;
        (2) the criteria to be used for the evaluation of grant applications under this chapter;
        (3) the coordination of public and private efforts concerning reduction and prevention of tobacco usage; and
        (4) any other matters for which the executive board state department of health requests recommendations from the advisory committee.
    (d) Members of the advisory committee are not entitled to a salary per diem or reimbursement of expenses for service on the advisory committee.
    (e) The advisory committee may establish subcommittees as necessary to carry out its duties under this section.
SOURCE: IC 4-12-5-6; (11)PD4580.18. -->     SECTION 53. IC 4-12-5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. A public or private entity or an individual may submit an application to the board state department of health for a grant from the account. Each application must be in writing and contain the following information:
        (1) A clear objective to be achieved with the grant.
        (2) A plan for implementation of the specific program.
        (3) A statement of the manner in which the proposed program will further the goals of the Indiana tobacco use prevention and cessation board's state department of health's mission statement and long range state plan under IC 4-12-4.
        (4) The amount of the grant requested.
        (5) An evaluation and assessment component to determine the program's performance.
        (6) Any other information required by the advisory board.
The advisory board may adopt written guidelines to establish procedures, forms, additional evaluation criteria, and application deadlines.
SOURCE: IC 4-12-7-7; (11)PD4580.19. -->     SECTION 54. IC 4-12-7-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. In using money distributed under this chapter, a local board of health shall give priority to:
        (1) programs that share common goals with the mission statement and long range state plan established by the Indiana tobacco use prevention and cessation board; state department of health;
        (2) preventive health measures; and
        (3) support for community health centers that treat low income persons and senior citizens.
SOURCE: IC 4-15-1.5-6; (11)PD4580.20. -->     SECTION 55. IC 4-15-1.5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. The appeals commission is hereby authorized and required to do the following:
        (1) To hear or investigate those appeals from state employees as is set forth in IC 4-15-2, IC 4-15-2.2-42, and fairly and impartially render decisions as to the validity of the appeals or lack thereof. Hearings shall be conducted in accordance with IC 4-21.5.
        (2) To make, alter, or repeal rules by a majority vote of its members for the purpose of conducting the business of the commission, in accordance with the provisions of IC 4-22-2.
        (3) To recommend to the personnel director such changes, additions, or deletions to personnel policy which the appeals commission feels would be beneficial and desirable.
SOURCE: IC 4-15-2.2; (11)PD4580.21. -->     SECTION 56. IC 4-15-2.2 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
    Chapter 2.2. State Civil Service System
    Sec. 1. (a) Except as provided in subsection (b), this chapter applies to employees of a governmental entity that exercises any of the executive powers of the state under the direction of the governor or lieutenant governor.
    (b) This chapter does not apply to the following:
        (1) The legislative department of state government.
        (2) The judicial department of state government.
        (3) The following state elected officers and their personal staffs:
            (A) The governor.
            (B) The lieutenant governor.
            (C) The secretary of state.
            (D) The treasurer of state.
            (E) The auditor of state.
            (F) The superintendent of public instruction.
            (G) The attorney general.
        (4) A body corporate and politic of the state created by state statute.
        (5) A political subdivision (as defined in IC 36-1-2-13).
        (6) An inmate who is working in a state penal, charitable, correctional, or benevolent institution.
        (7) The state police department.
    (c) This subsection does not apply to a political subdivision, the ports of Indiana (established by IC 8-10-1-3), the northern Indiana commuter transportation district (established under IC 8-5-15), or the northern Indiana regional transportation district (established under IC 8-24-2). The chief executive officer of a governmental entity that is exempt from this chapter under subsection (b) may elect to have this chapter apply to all or a part of the entity's employees by submitting a written notice of the election to the director.
    Sec. 2. As used in this chapter, "appointing authority" means the head of a department, division, board, or commission, or an individual or group of individuals who have the power by law or by lawfully delegated authority to make appointments to positions in the state civil service.
    Sec. 3. As used in this chapter, "class" or "class of positions" means a group of positions in the state civil service determined by the director to have sufficiently similar duties, authority, and responsibility such that:
        (1) the same qualifications may reasonably be required for; and
        (2) the same schedule of pay can be equitably applied to;
all positions in the group.
    Sec. 4. As used in this chapter, "classified employee" means an employee who:
        (1) has been appointed to a position in the state classified service;
        (2) has completed the working test period under section 34 of this chapter; and
        (3) has been certified by the appointing authority for that classification of positions.
    Sec. 5. As used in this chapter, "commission" refers to the state employees appeals commission created by IC 4-15-1.5-1.
    Sec. 6. As used in this chapter, "department" refers to the state personnel department established by section 13 of this chapter. The term includes the director.
    Sec. 7. As used in this chapter, "director" refers to the state personnel director appointed under section 14 of this chapter.
    Sec. 8. As used in this chapter, "division of the service" means any of the following that are subject to this chapter and whose positions are under the same appointing authority:
        (1) A state department.
        (2) A division or branch of a state department.
        (3) An agency of the state government.
        (4) A branch of the state civil service.
    Sec. 9. As used in this chapter, "state agency" means an authority, board, branch, commission, committee, department, division, or other instrumentality of state government that is subject to this chapter. The term does not include a state educational institution (as defined in IC 21-7-13-32).
    Sec. 10. As used in this chapter, "state civil service" means public service by individuals who are subject to this chapter. The term includes the state classified service (as the term is described in section 21 of this chapter) and the unclassified service (as the term is described in section 22 of this chapter).
    Sec. 11. As used in this chapter, "state institution" means any of the following:
        (1) A state institution (as defined in IC 12-7-2-184).
        (2) A correctional facility (as defined in IC 4-13.5-1-1) owned by the state and operated by the department of correction.
        (3) The Indiana School for the Deaf established by IC 20-22-2-1.
        (4) The Indiana School for the Blind and Visually Impaired established by IC 20-21-2-1.
        (5) The Indiana Veterans' Home as described in IC 10-17-9.
        (6) Any other facility owned and operated by the state whose employees participate in the state civil service.
    Sec. 12. (a) This chapter shall be liberally construed so as to increase governmental efficiency and responsiveness and to ensure the employment of qualified persons in the state classified service on the basis of the following merit principles:
        (1) Recruitment, selection, and promotion of employees on the basis of an individual's relative ability, knowledge, and skills.
        (2) The provision of equitable and adequate compensation.
        (3) The training of employees to ensure high quality performance.
        (4) The retention of employees based on:
            (A) the quality of the employees' performance; and
            (B) the correction of inadequate performance;
        and the dismissal of employees whose inadequate performance is not corrected.
        (5) Fair treatment of applicants and employees in all aspects of personnel administration:
            (A) without regard to political affiliation, race, color, national origin, gender, religious creed, age, or disability; and
            (B) with proper regard for the applicants' and employees' privacy and constitutional rights

as citizens.
        (6) Protection of employees from coercion for partisan political purposes, and prohibition on an employee using the employee's official authority to interfere with, or affect the result of, an election or nomination for political office.
    (b) All employment matters in the state classified service are guided by the merit principles set forth in subsection (a).
    (c) The personnel administration systems adopted under this chapter govern and limit all other state employment matters and every appointing authority.
    Sec. 13. The state personnel department is established.
    Sec. 14. (a) The governor shall appoint a director who is responsible for administering the department.
    (b) The director serves at the governor's pleasure.
    (c) The governor shall set the director's compensation.
    Sec. 15. The director shall do the following:
        (1) Direct and supervise all administrative and technical activities of the department.
        (2) Survey the administrative organization and procedures, including personnel procedures, of all state agencies, and submit to the governor measures to do the following among state agencies:
            (A) Secure greater efficiency and economy.
            (B) Minimize the duplication of activities.
            (C) Effect better organization and procedures.
        (3) Develop personnel policies, methods, procedures, and standards for all state agencies.
        (4) Establish and maintain a roster of all employees in the state civil service.
        (5) Prepare, or cause to be prepared, a classification and pay plan for the state civil service.
        (6) Administer the classification and pay plan prepared under subdivision (5).
        (7) Allocate each position in the state civil service to its proper class.
        (8) Approve individuals for appointment to positions in the state civil service.
        (9) Approve employees for transfer, demotion, or promotion within the state civil service.
        (10) Approve employees for suspension, layoff, or dismissal from the state civil service.
        (11) Rate the service of employees.
        (12) Arrange, in cooperation with the directors of the divisions of the service, for employee training.
        (13) Make available employee relations specialists to help employees:
            (A) resolve employment related problems; and
            (B) understand the procedures that are available for redress of grievances that the employee relations specialists do not resolve.
        (14) Investigate systems of appointment and promotion in operation in various departments or divisions of the state government.
        (15) Investigate and approve the need for existing and new positions in the state civil service.
        (16) Investigate periodically the operation and effectiveness of this chapter and rules adopted under this chapter.
        (17) Implement, administer, and enforce this chapter and rules and policies adopted under this chapter.
        (18) Appoint employees, experts, and special assistants, as necessary, to effectively carry out this chapter.
        (19) Perform any other lawful acts that the director considers necessary or desirable to carry

out this chapter.
        (20) Perform any other duties imposed by this chapter or assigned by the governor.
    Sec. 16. The director shall appoint one (1) or more employees of the department as the director's deputies.
    Sec. 17. (a) The director may employ such expert or special examiners as may be required for the conduct of tests for positions in the state civil service.
    (b) The director may select officers or employees in the state civil service to act as examiners in the preparation and rating of the tests described in subsection (a). An appointing authority may excuse any employee in the appointing authority's division of the service from the employee's regular duties for the time required to work as an examiner.
    (c) Officers and employees are not entitled to extra pay for their service as examiners, but are entitled to reimbursement for necessary traveling and other expenses.
    Sec. 18. The department may do the following:
        (1) Acquire, lease, own, or sell property in the name of the state in order to carry out its responsibilities under this chapter.
        (2) Adopt a seal.
        (3) Contract with persons outside the department to do those things that in the director's opinion cannot be adequately or efficiently handled by the department.
        (4) Sue and be sued.
        (5) Hire attorneys.
        (6) Administer oaths.
        (7) Take depositions.
        (8) Issue subpoenas.
    Sec. 19. The director may adopt rules under IC 4-22-2 that the director considers necessary, appropriate, or desirable to carry out the department's responsibilities under this chapter.
    Sec. 20. The state civil service is divided into the following parts:
        (1) The state classified service.
        (2) The unclassified service.
    Sec. 21. (a) Except as provided in subsection (b), the state classified service consists of positions in programs that have a federal statutory or regulatory requirement for the establishment and maintenance of personnel standards on a merit basis, including positions under the following:
        (1) Employment Security (Unemployment Insurance and Employment Services) (26 U.S.C. 3301 et seq., 29 U.S.C. 2801 et seq., 38 U.S.C. 2000 et seq., 42 U.S.C. 501 et seq., and 42 U.S.C. 1101 et seq.).
        (2) Federal Payments for Foster Care and Adoption Assistance (42 U.S.C. 673).
        (3) Supplemental Nutrition Assistance Program (7 U.S.C. 2011 et seq.).
        (4) Grants to States for Aid to the Blind (42 U.S.C. 1201 et seq.).

         (5) Medical Assistance (Medicaid) (42 U.S.C. 1396 et seq.).
        (6) Occupational Safety and Health Act (29 U.S.C. 651 et seq.).
        (7) Occupational Safety and Health Grants to States (29 U.S.C. 673).
        (8) Robert T. Stafford Disaster Assistance and Emergency Relief Act (42 U.S.C. 5121 et seq.).
        (9) Social Security Act (42 U.S.C. 301 et seq.).
        (10) State and Community Programs on Aging and the Older Americans Act
(42 U.S.C. 3001 et seq.).
        (11) Wagner-Peyser Act (29 U.S.C. 49 et seq.).
    (b) The following positions are exempt from the state classified service:


        (1) An officer or employee appointed by the governor or lieutenant governor.
        (2) A deputy, an administrative assistant, a secretary, or another position in a confidential relationship to an officer or employee described in subdivision (1).
        (3) An employee who holds an executive level position:
            (A) who is the head of a division or major unit within a state agency;
            (B) who is a regional director or manager for a state agency, regardless of the title of the position; or
            (C) who, as a substantial part of the position's duties, provides meaningful input on:
                (i) the development of policy goals; or
                (ii) the implementation of policy.
        (4) The superintendent or director of a state institution.
        (5) The highest ranking employee of a state agency who:
            (A) holds an executive level position; and
            (B) has primary responsibility for one (1) or more of the following functions:
                (i) Public information.
                (ii) Legal matters.
                (iii) Fiscal matters.
                (iv) Security or internal affairs.
                (v) Human resources.
    (c) This section may not be construed to include in the state classified service a position in a governmental entity listed in section 1(b) of this chapter unless the chief executive officer of the governmental entity makes the election described in section 1(c) of this chapter to have all or a part of the governmental entity's employees participate in the state civil service.
    Sec. 22. (a) The unclassified service consists of all offices and positions in the state civil service other than those in the state classified service.
    (b) The unclassified service is separate from the state classified service.
    (c) Except as expressly provided in this chapter, the human resource management systems applicable to the state classified service do not apply to the unclassified service.
    Sec. 23. (a) An employee in the state classified service who has successfully completed a working test period may be dismissed, demoted, or suspended only for just cause, including cause under section 49 of this chapter.
    (b) A classified employee is entitled to appeal a dismissal, demotion, or suspension as provided in section 42 of this chapter.
    Sec. 24. (a) An employee in the unclassified service is an employee at will and serves at the pleasure of the employee's appointing authority.
    (b) An employee in the unclassified service may be dismissed, demoted, disciplined, or transferred for any reason that does not contravene public policy.
    Sec. 25. Whenever a state agency or state institution is added to the classified part of the state civil service established by this chapter, an employee of the state agency or state institution who is in a position that is not subject to the classified provisions of this chapter is entitled to continue in that position until the employee has an opportunity to acquire classified employee status.
    Sec. 26. (a) The director, after consulting with appointing authorities and other qualified authorities, shall determine, or cause to be determined, the authority, duties, and responsibilities of all positions in the state civil service.
    (b) The director shall prepare a classification plan that groups all positions in the state civil service in classes, based on the authority, duties, and responsibilities of each position. The

classification plan must set forth, for each class of positions, the class title and a statement of the authority, duties, and responsibilities of the class. Each class of positions may be subdivided, and classes may be grouped and ranked in such manner as the director considers appropriate.
    (c) New, reclassified, or reallocated positions must be classified, reclassified, or reallocated in the same manner as positions were initially classified or allocated.
    (d) The director periodically shall:
        (1) review the positions in state civil service; and
        (2) reallocate the positions to the proper classes based on the duties and responsibilities of the positions at the time of the review under subdivision (1).
    Sec. 27. (a) After consultation with the budget agency, the director shall prepare and recommend to the governor a pay plan for all employees holding positions for which compensation is not fixed by law.
    (b) The pay plan must provide, for each class of positions, a minimum and maximum rate of pay as well as any intermediate rates of pay that the director considers necessary or equitable. In establishing the rates, the director shall consider the following factors:
        (1) The experience in recruiting for positions in the state civil service.
        (2) The prevailing rates of pay for the service performed and for comparable services in public and private employment.
        (3) The cost of living.
        (4) Benefits, other than the rate of pay, available to or received by employees.
        (5) The state's financial condition and policies.
    (c) The pay plan takes effect after the plan is approved by the budget agency and accepted by the governor.
    Sec. 28. (a) Classification titles or corresponding code numbers must be used to designate positions in all personnel, accounting, budget, appropriation, and financial records and communications of all state departments, institutions, and agencies.
    (b) A person may not be appointed to or employed in a position in the state civil service unless the director has approved the class title of the position as appropriate to the duties to be performed.
    Sec. 29. Vacancies in the state classified service may be filled only by a process approved by the director in accordance with the merit principles set forth in section 12 of this chapter.
    Sec. 30. An application for employment may be rejected if the department determines that the applicant:
        (1) lacks any of the required qualifications;
        (2) is incapable of performing the essential functions of the position that the applicant is seeking;
        (3) has been convicted of a crime;
        (4) has been dismissed from the public service;
        (5) has made a false statement of a material fact; or
        (6) committed or attempted to commit a fraud or deception in connection with submitting an application or attempting to secure an appointment to the state civil service.
    Sec. 31. (a) The director shall inform prospective applicants for state employment of the process for obtaining state employment.
    (b) The director may advertise or employ any other methods of publicizing opportunities for employment in state civil service.
    Sec. 32. (a) Former members of the armed forces of the United States who meet both of the following requirements shall receive a preference for appointment or reemployment in the state

classified service:
        (1) The veteran served on active duty in any branch of the armed forces.
        (2) The veteran was not discharged or separated from the armed forces under other than honorable conditions, unless the veteran presents appropriate records from:
            (A) the United States Department of Defense; or
            (B) the appropriate branch of the armed forces;
        showing a correction of a separation or discharge to "honorable".
    (b) When:
        (1) preemployment interviews of external candidates are conducted; and
        (2) the qualified applicant pool includes veterans;
veterans must be included in the group offered interviews.
    (c) In computing seniority for purposes of a personnel reduction in state civil service, the computation must include the length of time the employee spent on active duty in the armed forces of the United States.
    Sec. 33. (a) As used in this section, "individual with a disability" means an individual:
        (1) with a physical or mental impairment that substantially limits one (1) or more of the major life activities of the individual; or
        (2) who:
            (A) has a record of; or
            (B) is regarded as;
        having an impairment described in subdivision (1).
    (b) Notwithstanding any other provision of this chapter, an Indiana rehabilitation facility or the division of disability and rehabilitative services may certify that an individual:
        (1) is an individual with a disability; and
        (2) possesses the required knowledge, skill, and ability to perform the essential functions of a position classification:
            (A) with or without reasonable accommodation; or
            (B) with special accommodation for supported employment.
    (c) An applicant with a disability who is certified under subsection (b) may be appointed to a position in a classification for which the applicant is certified.
    Sec. 34. (a) Every person appointed to a classification in the state classified service shall complete a working test period while occupying a position in the classification. The working test period begins immediately upon the person's appointment and continues until a time established by the director. At least once during the working test period, the appointing authority shall prepare for the director, in the manner specified by the director, a full performance appraisal of the employee's work.
    (b) Subject to subsection (c), the appointing authority may remove an employee for any reason at any time during the employee's working test period. The appointing authority shall immediately report the removal to the director and to the employee who is removed.
    (c) If the director finds during an employee's working test period that the employee was appointed as a result of error or fraud, the director may remove the employee after providing the employee with notice and an opportunity to be heard.
    (d) Before the expiration of an employee's working test period, the appointing authority shall notify the director as to:
        (1) whether the services of the employee have been satisfactory; and
        (2) whether the appointing authority will continue the employee's employment after the

working test period ends.
The appointing authority shall provide the employee with a copy of the notice given to the director.
    (e) Sections 23 and 42 of this chapter do not apply to an employee who is removed during a working test period for the initial classification in the state classified service to which the employee is appointed.
    (f) The removal of an employee in the classified service from a working test period for a promotion from one (1) classification to another classification is not appealable, unless the removal results in the employee's dismissal or layoff.
    Sec. 35. (a) An appointing authority may at any time reassign an employee from one (1) position to another position in the same class or rank in the division of the service. The appointing authority shall, immediately after making the reassignment, give notice of the reassignment to the director.
    (b) The transfer of a classified employee from a position in a division of the service to a position of the same class or rank in another division of the service requires the approval of:
        (1) the appointing authorities of both divisions of the service; and
        (2) the director.
    (c) A classified employee must be appointed, rather than transferred, to a position:
        (1) in another class of a higher rank; or
        (2) for which the requirements for appointment are substantially dissimilar to the requirements for the position the employee currently holds.
    (d) The reassignment of a classified employee to a position in a class of a lower rank is a demotion. Unless the employee consents to the demotion in writing, the appointing authority must comply with section 23 of this chapter in making the demotion. A classified employee is entitled to appeal the demotion in accordance with section 42 of this chapter.
    (e) This section may not be construed to prohibit an appointing authority from temporarily substituting duties unrelated to an employee's position classification for the employee's usual duties.
    (f) This section may not be construed to impair the director's authority to reclassify or reorganize positions in the state civil service as long as the reclassification or reorganization is not based on a classified employee's misconduct or poor performance. The just cause standard described in section 23 of this chapter does not apply to such a reclassification or reorganization.
    Sec. 36. (a) In cooperation with appointing authorities, the director shall establish, and may periodically amend:
        (1) the standards of performance for employees;
        (2) the expected outcomes for employees; and
        (3) a system of service ratings based upon the standards described in subdivisions (1) and (2).
    (b) Employee performance standards and expected outcomes must be specific, measurable, achievable, relevant to the strategic objective of the employee's state agency or state institution, and time sensitive.
    (c) Each employee at all levels of the state civil service shall be held accountable for participating in the process of establishing the standards, outcomes, and ratings described in this section.
    (d) Each appointing authority shall, at periodic intervals (but at least annually), make, and report to the director, service ratings for the employees in the appointing authority's division of the service. As requested by the director, the appointing authority shall provide the information on which the appointing authority relied in determining a service rating.
    (e) Service ratings may be used as follows:
        (1) To determine salary increases and decreases within the limits established by law and by the pay plan developed under section 27 of this chapter.


        (2) As a factor in making promotions.
        (3) As a means of discovering employees:
            (A) who are candidates for promotion or transfer; or
            (B) who, because of a low service rating, are candidates for demotion or dismissal.
    Sec. 37. (a) An appointing authority shall report to the director each appointment, transfer, promotion, demotion, dismissal, change of salary rate, absence from duty, and other temporary or permanent change in the status of an employee in the appointing authority's division of the service.
    (b) The director shall prescribe the submission deadline, the form, and the supporting or pertinent information required for the report.
    Sec. 38. (a) The director shall maintain a perpetual roster that includes at least the following information for each employee in the state civil service system:
        (1) Whether the employee is in the state classified service or the unclassified service.
        (2) The title of the position the employee holds.
        (3) The department, state agency, or state institution to which the employee is assigned.
        (4) The employee's pay rate.
        (5) The employee's date of appointment.
        (6) Any other information that the director considers pertinent.
    (b) The director shall maintain any other personnel records that the director considers desirable.
    (c) The director shall provide tabulations and analyses of state employee personnel data that are available to the director to:
        (1) the governor;
        (2) the general assembly in the electronic format required by IC 5-14-6;
        (3) the budget director;
        (4) department and institution directors; and
        (5) other persons to the extent required by and in accordance with IC 5-14-3.
    (d) All officers and employees shall, during usual business hours:
        (1) grant to the director, or any agent or employee of the department designated by the director, unlimited access to the premises and records pertaining to personnel matters that are under the officers' or employees' control; and
        (2) furnish to the director, or the director's agent, the facilities, assistance, and information required to administer this chapter.
    Sec. 39. Rules adopted by the department for state civil service employees must provide for the hours of work and leaves of absence.
    Sec. 40. (a) An appointing authority has the authority to lay off or furlough employees or to reduce hours of employment for any of the following reasons:
        (1) Lack of funds.
        (2) A reduction in spending authorization.
        (3) Lack of work.
        (4) Efficiency.
    (b) The appointing authority has the authority to determine the extent, effective dates, and length of a layoff, furlough, or reduction in hours taken under subsection (a).
    (c) The appointing authority shall determine the classifications affected and the number of employees laid off in each classification and county to which a layoff applies.
    (d) In determining a layoff, the appointing authority must consider all employees under the same appointing authority, within the classification affected, and within the county affected, and consider service ratings first. Thereafter, consideration may be given to the following relevant factors:
        (1) Disciplinary record.
        (2) Knowledge, skill, and ability.
        (3) Seniority.
    Sec. 41. (a) As used in this section, "state seniority" means the length of an employee's unbroken, continuous state employment.
    (b) A former employee in the state civil service system has a right of recall to the classification from which the employee was laid off. Recall rights under this section are to positions under the same appointing authority and in the same or a contiguous county from which a former employee was laid off.
    (c) A former employee must assert in a timely manner the claim of entitlement to recall in response to the official posting of a vacancy.
    (d) A recall under this section is contingent upon the former employee having the knowledge, skill, and ability to perform the duties of the position for which the former employee is applying.
    (e) The appointing authority shall recall former employees in the order of the employees' service ratings. In the event of a tie in service ratings, the right to recall is determined by state seniority. If there is a tie in state seniority, the former employee with the highest number comprised of the last four (4) digits of the employee's Social Security number is the employee recalled.
    (f) The right to recall under this section expires on the earlier of:
        (1) one (1) year after date the employee is laid off; or
        (2) the date the employee is reemployed in a permanent position.
    (g) For state seniority purposes, an employee who becomes reemployed within one (1) year after the date the employee is laid off is considered to have unbroken, continuous state employment, except that the time that the employee spent in out-of-pay status as a result of the layoff must be deducted from the employee's total seniority.
    Sec. 42. (a) An employee in the state civil service system may file a complaint concerning the application of a law, rule, or policy to the complainant. However, a gubernatorial appointee does not have standing to file a complaint under this section.
    (b) A complaint filed under this section must identify the law, rule, or policy that was allegedly violated.
    (c) An employee who files a complaint under this section must initiate the complaint procedure as soon as possible after the occurrence of the act or condition complained of, and not later than thirty (30) calendar days after the date the employee became aware, or by the exercise of reasonable diligence should have been aware, of the occurrence giving rise to the complaint. An employee who does not initiate the complaint procedure within the thirty (30) day period waives the right to file that complaint.
    (d) A remedy granted under this section may not extend back more than thirty (30) calendar days before the complaint was initiated.
    (e) The following complaint procedure is established:
        Step I: The complainant shall reduce the complaint to writing and present the complaint to the appointing authority or the appointing authority's designated representative. The appointing authority or designee shall conduct any investigation considered necessary and issue a decision, in writing, not later than fifteen (15) calendar days after the date the appointing authority receives the complaint.
        Step II: If the appointing authority or the appointing authority's designated representative does not find in favor of the complainant, the complainant may submit the complaint to the director not later than fifteen (15) calendar days after the date of the appointing authority's

finding. The director or the director's designee shall review the complaint and issue a decision not later than thirty (30) calendar days after the date the complaint is submitted to the director.
        Step III: If the employee is not satisfied with the director's decision, the employee may submit an appeal in writing to the commission not later than fifteen (15) calendar days after the date the employee receives notice of the action taken by the director or the director's designee. The commission shall determine whether all previous steps were completed properly and in a timely manner, and, subject to subsection (f), whether the employee and subject of the complaint meet the jurisdictional requirements. If a procedural or jurisdictional requirement is not met, the commission shall dismiss the appeal. If the procedural and jurisdictional requirements have been met, the commission shall conduct proceedings in accordance with IC 4-21.5-3.
    (f) An unclassified employee must establish that the commission has subject matter jurisdiction to hear the employee's wrongful discharge claim by establishing that a public policy exception to the employment at will doctrine was the reason for the employee's discharge. The former employee has the burden of proof on this issue.
    (g) In a disciplinary case involving a classified employee, the commission shall defer to the appointing authority's choice as to the discipline imposed, if the appointing authority establishes that there was just cause for the imposition of the discipline. The appointing authority has the burden of proof on this issue.
    (h) Decisions of the commission are subject to judicial review in accordance with IC 4-21.5-3.
    (i) An employee who is suspended or terminated after a hearing held by the state ethics commission is not entitled to use the procedure set forth in this section. An employee who seeks further review of a suspension or termination imposed by the state ethics commission must seek judicial review of the state ethics commission's decision in accordance with IC 4-21.5-3.
    Sec. 43. (a) An employee covered by this chapter:
        (1) is eligible for;
        (2) must participate in; and
        (3) receives the benefits of;
the public employees' retirement fund under IC 5-10.2 and IC 5-10.3.
    (b) An employee holding an hourly, temporary, or intermittent appointment:
        (1) is not eligible to become a member of the public employees' retirement fund; and
        (2) does not earn creditable service for purposes of the public employees' retirement fund for service in those positions.
    (c) Notwithstanding any contrary provision, an employee who served in an intermittent form of temporary employment after June 30, 1986, and before July 1, 2003, shall receive creditable service for the period of intermittent employment.
    Sec. 44. (a) An officer or employee implementing or administering this chapter may not consider the gender or the political, religious, or racial characteristics of a classified employee.
    (b) A classified employee may not be compelled to make political contributions or participate in any form of political activity.
    Sec. 45. (a) This section does not apply to precinct committeemen, state or national party convention delegates, or candidates for these party positions.
    (b) A classified employee who is elected to a federal or state public office is considered to have resigned from state service on the date the person takes office.
    Sec. 46. A person may not:


        (1) make a false statement, certificate, mark, rating, or report in connection with an appointment under this chapter; or
        (2) commit or attempt to commit in any manner fraud that prevents the impartial implementation or administration of this chapter or rules adopted under this chapter.
    Sec. 47. A person may not, directly or indirectly, give, render, pay, offer, solicit, or accept money, service, or other valuable consideration:
        (1) for, or in connection with, an appointment, a proposed appointment, a promotion, or a proposed promotion to; or
        (2) to obtain any advantage in;
a position in the state classified service.
    Sec. 48. (a) For the purpose of enforcing this chapter, the director and authorized employees of the department have authority to:
        (1) administer oaths;
        (2) conduct examinations;
        (3) subpoena witnesses; and
        (4) require:
            (A) the attendance of witnesses; and
            (B) the production of books, records, and papers;
        at any reasonable place.
    (b) The director must sign all subpoenas issued under this section.
    (c) The circuit or superior court of a county shall compel obedience to subpoenas and requests for the production of books, records, and papers issued under this section, upon a verified written application by the person conducting the examination, ten (10) days notice to the person whose testimony or production is sought, and a showing of the probability of any of the following:
        (1) The books, records, and papers are material to the examination.
        (2) The witness has information that is material to the examination.
    (d) It is unlawful to fail to:
        (1) appear in response to a subpoena;
        (2) answer questions; or
        (3) produce books or papers;
in connection with an investigation or hearing under this chapter.
    (e) It is unlawful to knowingly give false testimony at an investigation or hearing under this chapter.
    Sec. 49. The refusal or failure of an employee in the state classified service to do any of the following is sufficient grounds for the employee's dismissal by the appointing authority:
        (1) The employee willfully refuses or fails to appear before:
            (A) a court or judge;
            (B) a legislative committee; or
            (C) an officer, board, or body authorized to conduct a hearing or inquiry.
        (2) After making an appearance, the employee refuses to testify or answer questions relating to:
            (A) the affairs or government of the state; or
            (B) the conduct of any officer or employee.
    Sec. 50. The director may enter into an agreement with a political subdivision (as defined in IC 36-1-2-13) to furnish services related to or involving the administration of the political subdivision's personnel system. The agreement must provide for the reimbursement to the state of

the reasonable cost, as determined by the director, of the services and facilities furnished. All political subdivisions are authorized to enter into such agreements.
    Sec. 51. This chapter may not be construed so as to result in the delay or stoppage of grants-in-aid to the state by agencies of the federal government.
    Sec. 52. (a) Any reference or cross-reference to the state personnel department in the Indiana Code shall be treated after June 30, 2011, as a reference or cross-reference to the department.
    (b) Any reference or cross-reference to IC 4-15-1.8 or IC 4-15-2 shall be treated after June 30, 2011, as a reference or cross-reference to this chapter.
    Sec. 53. The human resources management system established by this chapter shall be known as the state civil service system.

SOURCE: IC 4-15-17; (11)PD4580.22. -->     SECTION 57. IC 4-15-17 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 17. Employee Organizations
    Sec. 1. (a) Except as provided in subsection (b), this chapter does not apply to the following:
        (1) The state police department.
        (2) A state educational institution (as defined in IC 21-7-13-32).
        (3) A political subdivision (as defined in IC 3-5-2-38).
    (b) Sections 8, 9, and 10 of this chapter apply to the state police department.
    Sec. 2. As used in this chapter, "employee organization" means an entity that works in whole or in part for the common interest of employees.
    Sec. 3. (a) As used in this chapter, "state" means any of the following:
        (1) A department, commission, division, authority, board, bureau, or office of state government that exercises any executive powers.
        (2) Any statewide elected official.
        (3) A body corporate and politic of the state created by state statute.
    (b) The term does not include any of the following:
        (1) The state police department.
        (2) A state educational institution (as defined in IC 21-7-13-32).
        (3) A political subdivision (as defined in IC 3-5-2-38).
        (4) The ports of Indiana (established by IC 8-10-1-3).
        (5) The northern Indiana commuter transportation district (established under IC 8-5-15).

         (6) The northern Indiana regional transportation district (established under IC 8-24-2).
    Sec. 4. Collective bargaining between the state and employee organizations and strikes by state employees are illegal.
    Sec. 5. The state shall not:
        (1) recognize a union or any other employee organization as a representative of the employees of the state;
        (2) bargain collectively with an employee organization;
        (3) enter into a collectively bargained agreement; or
        (4) require an employee to join or financially support an employee organization.
    Sec. 6. An employee of the state is entitled to do any of the following in a manner that does not interfere with the performance of the duties of the employee or of another employee of the state or adversely affect the conduct of state business:
        (1) Be a member of or otherwise associate with an employee organization.
        (2) Consult with others for the common good of employees.
        (3) Financially support an employee organization.
        (4) Petition for the redress of grievances.
    Sec. 7. Any contract, agreement, settlement, conditions of cooperation, or any other device resulting from negotiations between:
        (1) the state; and
        (2) an employee organization;
is contrary to public policy and is illegal, unenforceable, void, and of no effect.
    Sec. 8. (a) As used in this section, "strike" means any of the following:
        (1) A work stoppage or partial cessation of work.
        (2) The abstinence, in whole or in part, from the full, faithful, and proper performance of the employee's duties of employment.
        (3) Any other interruption or interference with the activities of the state.
        (4) The threat or encouragement of the activities described in subdivisions (1) through (3).
    (b) An employee of the state shall not strike.
    (c) An approved leave of absence or the unconditional resignation of an employee from employment is not a strike.
    Sec. 9. A person who violates this chapter commits a Class C infraction. A court may assess damages against a person who violates this chapter, in addition to any civil penalties that are imposed.
    Sec. 10. This chapter does not alter, impair, or negate the existing relationship between the state police department and the Indiana state police alliance.

SOURCE: IC 4-22-2-37.1; (11)PD4580.23. -->     SECTION 58. IC 4-22-2-37.1, AS AMENDED BY SEA 295-2011, SECTION 2, HEA 1121-2011, SECTION 1, HEA 1486-2011, SECTION 1, AND HEA 1046-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 37.1. (a) This section applies to a rulemaking action resulting in any of the following rules:
        (1) An order adopted by the commissioner of the Indiana department of transportation under IC 9-20-1-3(d) or IC 9-21-4-7(a) and designated by the commissioner as an emergency rule.
        (2) An action taken by the director of the department of natural resources under IC 14-22-2-6(d) or IC 14-22-6-13.
        (3) An emergency temporary standard adopted by the occupational safety standards commission under IC 22-8-1.1-16.1.
        (4) An emergency rule adopted by the solid waste management board under IC 13-22-2-3 and classifying a waste as hazardous.
        (5) A rule, other than a rule described in subdivision (6), adopted by the department of financial institutions under IC 24-4.5-6-107 and declared necessary to meet an emergency.
        (6) A rule required under IC 24-4.5-1-106 that is adopted by the department of financial institutions and declared necessary to meet an emergency under IC 24-4.5-6-107.
        (7) A rule adopted by the Indiana utility regulatory commission to address an emergency under IC 8-1-2-113.
        (8) An emergency rule adopted by the state lottery commission under IC 4-30-3-9.
        (9) A rule adopted under IC 16-19-3-5 or IC 16-41-2-1 that the executive board of the state department of health declares is necessary to meet an emergency.
        (10) An emergency rule adopted by the Indiana finance authority under IC 8-21-12.
        (11) An emergency rule adopted by the insurance commissioner under IC 27-1-23-7 or IC 27-1-12.1.
        (12) An emergency rule adopted by the Indiana horse racing commission under IC 4-31-3-9.
        (13) An emergency rule adopted by the air pollution control board, the solid waste management

board, or the water pollution control board under IC 13-15-4-10(4) or to comply with a deadline required by or other date provided by federal law, provided:
            (A) the variance procedures are included in the rules; and
            (B) permits or licenses granted during the period the emergency rule is in effect are reviewed after the emergency rule expires.
        (14) An emergency rule adopted by the Indiana election commission under IC 3-6-4.1-14.
        (15) An emergency rule adopted by the department of natural resources under IC 14-10-2-5.
        (16) An emergency rule adopted by the Indiana gaming commission under IC 4-32.2-3-3(b), IC 4-33-4-2, IC 4-33-4-3, IC 4-33-4-14, IC 4-33-22-12, or IC 4-35-4-2.
        (17) An emergency rule adopted by the alcohol and tobacco commission under IC 7.1-3-17.5, IC 7.1-3-17.7, or IC 7.1-3-20-24.4.
        (18) An emergency rule adopted by the department of financial institutions under IC 28-15-11.
        (19) An emergency rule adopted by the office of the secretary of family and social services under IC 12-8-1-12.
        (20) An emergency rule adopted by the office of the children's health insurance program under IC 12-17.6-2-11.
        (21) An emergency rule adopted by the office of Medicaid policy and planning under IC 12-15-41-15.
        (22) An emergency rule adopted by the Indiana state board of animal health under IC 15-17-10-9.
        (23) An emergency rule adopted by the board of directors of the Indiana education savings authority under IC 21-9-4-7.
        (24) An emergency rule adopted by the Indiana board of tax review under IC 6-1.1-4-34 (repealed).
        (25) An emergency rule adopted by the department of local government finance under IC 6-1.1-4-33 (repealed).
        (26) An emergency rule adopted by the boiler and pressure vessel rules board under IC 22-13-2-8(c).
        (27) An emergency rule adopted by the Indiana board of tax review under IC 6-1.1-4-37(l) (repealed) or an emergency rule adopted by the department of local government finance under IC 6-1.1-4-36(j) (repealed) or IC 6-1.1-22.5-20.
        (28) An emergency rule adopted by the board of the Indiana economic development corporation under IC 5-28-5-8.
        (29) A rule adopted by the department of financial institutions under IC 34-55-10-2.5.
        (30) A rule adopted by the Indiana finance authority:
            (A) under IC 8-15.5-7 approving user fees (as defined in IC 8-15.5-2-10) provided for in a public-private agreement under IC 8-15.5;
            (B) under IC 8-15-2-17.2(a)(10):
                (i) establishing enforcement procedures; and
                (ii) making assessments for failure to pay required tolls;
            (C) under IC 8-15-2-14(a)(3) authorizing the use of and establishing procedures for the implementation of the collection of user fees by electronic or other nonmanual means; or
            (D) to make other changes to existing rules related to a toll road project to accommodate the provisions of a public-private agreement under IC 8-15.5.
        (31) An emergency rule adopted by the board of the Indiana health informatics corporation under IC 5-31-5-8.
        (32) An emergency rule adopted by the department of child services under IC 31-25-2-21, IC 31-27-2-4, IC 31-27-4-2, or IC 31-27-4-3.


        (33) An emergency rule adopted by the Indiana real estate commission under IC 25-34.1-2-5(15).
        (34) A rule adopted by the department of financial institutions under IC 24-4.4-1-101 and determined necessary to meet an emergency.
        (35) An emergency rule adopted by the state board of pharmacy regarding returning unused medication under IC 25-26-23.
        (35) (36) An emergency rule adopted by the department of local government finance under IC 6-1.1-12.6 or IC 6-1.1-12.8.
         (37) An emergency rule adopted by the office of the secretary of family and social services or the office of Medicaid policy and planning concerning the following:
            (A) Federal Medicaid waiver program provisions.

            (B) Federal programs administered by the office of the secretary.
    (b) The following do not apply to rules described in subsection (a):
        (1) Sections 24 through 36 of this chapter.
        (2) IC 13-14-9.
    (c) After a rule described in subsection (a) has been adopted by the agency, the agency shall submit the rule to the publisher for the assignment of a document control number. The agency shall submit the rule in the form required by section 20 of this chapter and with the documents required by section 21 of this chapter. The publisher shall determine the format of the rule and other documents to be submitted under this subsection.
    (d) After the document control number has been assigned, the agency shall submit the rule to the publisher for filing. The agency shall submit the rule in the form required by section 20 of this chapter and with the documents required by section 21 of this chapter. The publisher shall determine the format of the rule and other documents to be submitted under this subsection.
    (e) Subject to section 39 of this chapter, the publisher shall:
        (1) accept the rule for filing; and
        (2) electronically record the date and time that the rule is accepted.
    (f) A rule described in subsection (a) takes effect on the latest of the following dates:
        (1) The effective date of the statute delegating authority to the agency to adopt the rule.
        (2) The date and time that the rule is accepted for filing under subsection (e).
        (3) The effective date stated by the adopting agency in the rule.
        (4) The date of compliance with every requirement established by law as a prerequisite to the adoption or effectiveness of the rule.
    (g) Subject to subsection (h), IC 14-10-2-5, IC 14-22-2-6, IC 22-8-1.1-16.1, and IC 22-13-2-8(c), and except as provided in subsections (j), (k), and (l), a rule adopted under this section expires not later than ninety (90) days after the rule is accepted for filing under subsection (e). Except for a rule adopted under subsection (a)(13), (a)(24), (a)(25), or (a)(27), the rule may be extended by adopting another rule under this section, but only for one (1) extension period. The extension period for a rule adopted under subsection (a)(28) may not exceed the period for which the original rule was in effect. A rule adopted under subsection (a)(13) may be extended for two (2) extension periods. Subject to subsection (j), a rule adopted under subsection (a)(24), (a)(25), or (a)(27) may be extended for an unlimited number of extension periods. Except for a rule adopted under subsection (a)(13), for a rule adopted under this section to be effective after one (1) extension period, the rule must be adopted under:
        (1) sections 24 through 36 of this chapter; or
        (2) IC 13-14-9;
as applicable.
    (h) A rule described in subsection (a)(8), (a)(12), (a)(19), (a)(20), (a)(21), or (a)(29), or (a)(37) expires on the earlier of the following dates:
        (1) The expiration date stated by the adopting agency in the rule.
        (2) The date that the rule is amended or repealed by a later rule adopted under sections 24 through 36 of this chapter or this section.
    (i) This section may not be used to readopt a rule under IC 4-22-2.5.
    (j) A rule described in subsection (a)(24) or (a)(25) expires not later than January 1, 2006.
    (k) A rule described in subsection (a)(28) expires on the expiration date stated by the board of the Indiana economic development corporation in the rule.
    (l) A rule described in subsection (a)(30) expires on the expiration date stated by the Indiana finance authority in the rule.
    (m) A rule described in subsection (a)(5) or (a)(6) expires on the date the department is next required to issue a rule under the statute authorizing or requiring the rule.
SOURCE: IC 4-31-11-15; (11)PD4580.24. -->     SECTION 59. IC 4-31-11-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. The commission shall use the development funds to provide purses and other funding for the activities described in section 9 of this chapter. The commission may pay:
        (1) the operating costs of the development programs; and
        (2) other costs of administering this chapter;
from one (1) or more of the development funds. However, the amount used for each state fiscal year from these development funds to pay these costs may not exceed two percent (2%) of the amount distributed to those funds during the immediately preceding state fiscal year under IC 4-35-7-12.

SOURCE: IC 4-35-7-12; (11)PD4580.25. -->     SECTION 60. IC 4-35-7-12, AS AMENDED BY P.L.142-2009, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) The Indiana horse racing commission shall enforce the requirements of this section.
    (b) Except as provided in subsections subsection (j), and (k), a licensee shall before the fifteenth day of each month devote to the gaming integrity fund, horse racing purses, and to horsemen's associations distribute an amount equal to fifteen percent (15%) of the adjusted gross receipts of the slot machine wagering from the previous month at the licensee's racetrack as provided in this subsection. The Indiana horse racing commission may not use any of this money for any administrative purpose or other purpose of the Indiana horse racing commission, and the entire amount of the money shall be distributed as provided in this section. A licensee shall pay the first one million five hundred thousand dollars ($1,500,000) distributed under this section in a state fiscal year to the treasurer of state for deposit in the Indiana tobacco master settlement agreement fund for the purposes of the tobacco use prevention and cessation program. A licensee shall pay the next two hundred fifty thousand dollars ($250,000) distributed under this section in a state fiscal year to the Indiana horse racing commission for deposit in the gaming integrity fund established by IC 4-35-8.7-3. After this money has been distributed to the treasurer of state and the Indiana horse racing commission, a licensee shall distribute the remaining money devoted to horse racing purses and to horsemen's associations under this subsection as follows:
        (1) Five-tenths percent (0.5%) shall be transferred to horsemen's associations for equine promotion or welfare according to the ratios specified in subsection (e).
        (2) Two and five-tenths percent (2.5%) shall be transferred to horsemen's associations for backside benevolence according to the ratios specified in subsection (e).
        (3) Ninety-seven percent (97%) shall be distributed to promote horses and horse racing as provided in subsection (d).
    (c) A horsemen's association shall expend the amounts distributed to the horsemen's association under subsection (b)(1) through (b)(2) for a purpose promoting the equine industry or equine welfare or for a benevolent purpose that the horsemen's association determines is in the best interests of horse racing in Indiana for the breed represented by the horsemen's association. Expenditures under this subsection are subject to the regulatory requirements of subsection (f).
    (d) A licensee shall distribute the amounts described in subsection (b)(3) as follows:
        (1) Forty-six percent (46%) for thoroughbred purposes as follows:
            (A) Sixty percent (60%) for the following purposes:
                (i) Ninety-seven percent (97%) for thoroughbred purses.
                (ii) Two and four-tenths percent (2.4%) to the horsemen's association representing thoroughbred owners and trainers.
                (iii) Six-tenths percent (0.6%) to the horsemen's association representing thoroughbred owners and breeders.
            (B) Forty percent (40%) to the breed development fund established for thoroughbreds under IC 4-31-11-10.
        (2) Forty-six percent (46%) for standardbred purposes as follows:
             (A) Three hundred seventy-five thousand dollars ($375,000) to the state fair commission to be used by the state fair commission to support standardbred racing and facilities at the state fairgrounds.
            (B) One hundred twenty-five thousand dollars ($125,000) to the state fair commission to be used by the state fair commission to make grants to county fairs to support standardbred racing and facilities at county fair tracks. The state fair commission shall establish a review committee to include the standardbred association board, the Indiana horse racing commission, and the Indiana county fair association to make recommendations to the state fair commission on grants under this clause.

            (A) (C) Fifty percent (50%) of the amount remaining after the distributions under clauses (A) and (B) for the following purposes:
                (i) Ninety-six and five-tenths percent (96.5%) for standardbred purses.
                (ii) Three and five-tenths percent (3.5%) to the horsemen's association representing standardbred owners and trainers.
            (B) (D) Fifty percent (50%) of the amount remaining after the distributions under clauses (A) and (B) to the breed development fund established for standardbreds under IC 4-31-11-10.
        (3) Eight percent (8%) for quarter horse purposes as follows:
            (A) Seventy percent (70%) for the following purposes:
                (i) Ninety-five percent (95%) for quarter horse purses.
                (ii) Five percent (5%) to the horsemen's association representing quarter horse owners and trainers.
            (B) Thirty percent (30%) to the breed development fund established for quarter horses under IC 4-31-11-10.
Expenditures under this subsection are subject to the regulatory requirements of subsection (f).
    (e) Money distributed under subsection (b)(1) and (b)(2) shall be allocated as follows:
        (1) Forty-six percent (46%) to the horsemen's association representing thoroughbred owners and trainers.
        (2) Forty-six percent (46%) to the horsemen's association representing standardbred owners and trainers.
        (3) Eight percent (8%) to the horsemen's association representing quarter horse owners and trainers.
    (f) Money distributed under this section subsection (b)(1), (b)(2), or (b)(3) may not be expended unless the expenditure is for a purpose authorized in this section and is either for a purpose promoting the equine industry or equine welfare or is for a benevolent purpose that is in the best interests of horse racing in Indiana or the necessary expenditures for the operations of the horsemen's association required to implement and fulfill the purposes of this section. The Indiana horse racing commission may review any expenditure of money distributed under this section subsection (b)(1), (b)(2), or (b)(3) to ensure that the requirements of this section are satisfied. The Indiana horse racing commission shall adopt rules concerning the review and oversight of money distributed under this section subsection (b)(1), (b)(2), or (b)(3) and shall adopt rules concerning the enforcement of this section. The following apply to a horsemen's association receiving a distribution of money under this section: subsection (b)(1), (b)(2), or (b)(3):
        (1) The horsemen's association must annually file a report with the Indiana horse racing commission concerning the use of the money by the horsemen's association. The report must include information as required by the commission.
        (2) The horsemen's association must register with the Indiana horse racing commission.
    (g) The commission shall provide the Indiana horse racing commission with the information necessary to enforce this section.
    (h) The Indiana horse racing commission shall investigate any complaint that a licensee has failed to comply with the horse racing purse requirements set forth in this section. If, after notice and a hearing, the Indiana horse racing commission finds that a licensee has failed to comply with the purse requirements set forth in this section, the Indiana horse racing commission may:
        (1) issue a warning to the licensee;
        (2) impose a civil penalty that may not exceed one million dollars ($1,000,000); or
        (3) suspend a meeting permit issued under IC 4-31-5 to conduct a pari-mutuel wagering horse racing meeting in Indiana.
    (i) A civil penalty collected under this section must be deposited in the state general fund.
    (j) For a state fiscal year beginning after June 30, 2008, and ending before July 1, 2009, the amount of money dedicated to the purposes described in subsection (b) for a particular state fiscal year is equal to the lesser of:
        (1) fifteen percent (15%) of the licensee's adjusted gross receipts for the state fiscal year; or
        (2) eighty-five million dollars ($85,000,000).
If fifteen percent (15%) of a licensee's adjusted gross receipts for the state fiscal year exceeds the amount specified in subdivision (2), the licensee shall transfer the amount of the excess to the commission for deposit in the state general fund. The licensee shall adjust the transfers required under this section in the final month of the state fiscal year to comply with the requirements of this subsection.
    (k) (j) For a state fiscal year beginning after June 30, 2009, 2011, the sum of the amount of money dedicated to the distribution to the Indiana horse racing commission for deposit in the gaming integrity fund and the amount of money dedicated to the purposes described in subsection (b) (b)(1), (b)(2), and (b)(3) for a particular state fiscal year is equal to the lesser of:
        (1) the result of:
            (A)
fifteen percent (15%) of the licensee's adjusted gross receipts for the state fiscal year; minus
            (B) one million five hundred thousand dollars ($1,500,000);
or
        (2) the result of:
            (A) in the state fiscal year beginning July 1, 2011, and ending June 30, 2012:
                (i) the sum of the
amount dedicated to the distribution to the Indiana horse racing commission for deposit in the gaming integrity fund and the amount dedicated to the purposes described in subsection (b) (b)(1), (b)(2), and (b)(3) in the previous state fiscal year; minus
                (ii) one million five hundred thousand dollars ($1,500,000); and
            (B) in a state fiscal year beginning after June 30, 2012, the sum of the
amount dedicated to the distribution to the Indiana horse racing commission for deposit in the gaming integrity fund and the amount dedicated to the purposes described in subsection (b) (b)(1), (b)(2), and (b)(3) in the previous state fiscal year;
        increased by a percentage that does not exceed the percent of increase in the United States Department of Labor Consumer Price Index during the year preceding the year in which an increase is established.
If fifteen percent (15%) of a licensee's adjusted gross receipts the amount specified in subdivision (1) for the state fiscal year exceeds the amount specified in subdivision (2), the licensee shall transfer the amount of the excess to the commission for deposit in the state general fund. The licensee shall adjust the transfers required under this section in the final month of the state fiscal year to comply with the requirements of this subsection.
SOURCE: IC 4-35-8.7-3; (11)PD4580.26. -->     SECTION 61. IC 4-35-8.7-3, AS AMENDED BY P.L.142-2009, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) The gaming integrity fund is established.
    (b) The fund shall be administered by the Indiana horse racing commission.
    (c) The fund consists of gaming integrity fees deposited in the fund under this chapter and money distributed to the fund under IC 4-35-7-12. Fifteen percent (15%) of the money deposited in the fund shall be transferred to the Indiana state board of animal health to be used by the state board to pay the costs associated with equine health and equine care programs under IC 15-17.
    (d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
    (e) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    (f) Money in the fund may be used by the Indiana horse racing commission only for the following purposes:
        (1) To pay the cost of taking and analyzing equine specimens under IC 4-31-12-6(b) or another law or rule and the cost of any supplies related to the taking or analysis of specimens.
        (2) To pay dues to the Drug Testing Standards and Practices (DTSP) Committee of the Association of Racing Commissioners International.
        (3) To provide grants for research for the advancement of equine drug testing. Grants under this subdivision must be approved by the Drug Testing Standards and Practices (DTSP) Committee of the Association of Racing Commissioners International or by the Racing Mediation and Testing Consortium.
         (4) To pay the costs of post-mortem examinations under IC 4-31-12-10.
        (5) To pay other costs incurred by the commission to maintain the integrity of pari-mutuel racing.

SOURCE: IC 5-1-5-2; (11)PD4580.27. -->     SECTION 62. IC 5-1-5-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) The governing body of any issuing body may by ordinance provide for the issuance of bonds to refund outstanding bonds issued at any time by such issuing body or its predecessor, and to pay redemption premiums and costs of refunding to effect a saving to the issuing body. Issuance of bonds to refund outstanding bonds may also be made in order to pay or discharge all or any part of such outstanding series

or issue of bond, including any interest thereon, in arrears or about to become due and for which sufficient funds are not available or to modify restrictive covenants in outstanding bonds impeding additional financing. To determine whether or not a savings will be effected, consideration shall be given to the estimated or known interest payable to the fixed maturities of the refunding bonds, the interest payable on the bonds to be refunded, the costs of issuance of the refunding bonds, including any sale discount, the redemption premiums, if any, to be paid, and the probable earned income from the investment of the refunding bond proceeds pending redemption of the bonds to be refunded.
    (b) The provisions of subsection (a) requiring a savings to be effected do not apply to:
         (1) the issuance of bonds to refund previously issued refunding bonds, if the statute under which the refunding bonds are issued expressly exempts such an issue from this savings requirement; or
        (2) the issuance of refunding bonds by a school corporation that is an eligible school corporation under section 2.5 of this chapter.

SOURCE: IC 5-1-5-2.5; (11)PD4580.28. -->     SECTION 63. IC 5-1-5-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.5. (a) As used in this section, "eligible school corporation" means a school corporation (as defined in IC 36-1-2-17) that satisfies all the conditions required by this section.
    (b) As used in this section, "increment" means the annual difference between:
        (1) the annual debt service payment for the bonds proposed to be retired or refunded; and
        (2) the annual debt service payment for the proposed refunding bonds;
for each year that the bonds that are being retired or refunded would have been outstanding.
    (c) In order for a school corporation to be an eligible school corporation under this section, the school corporation must determine that the percentage computed under this subsection for the school corporation is at least thirty percent (30%) regarding the year for which the latest certified levies have been determined. A school corporation shall compute its percentage as follows:
        (1) Compute the amount of credits granted under IC 6-1.1-20.6 against the school corporation's combined levy for the school corporation's:
            (A) debt service fund, as described in IC 20-46-7-15;
            (B) capital projects fund;
            (C) transportation fund;
            (D) school bus replacement fund; and
            (E) racial balance fund.
        (2) Compute the school corporation's combined levy for the school corporation's:
            (A) capital projects fund;
            (B) transportation fund;
            (C) school bus replacement fund; and
            (D) racial balance fund.
        (3) Divide the amount computed under subdivision (1) by the amount computed under subdivision (2) and express it as a percentage.
    (d) A school corporation that desires to be an eligible school corporation under this section must satisfy the following conditions:
        (1) The school corporation shall conduct a public hearing and provide notice of the time, date, and place of the hearing, published as required by IC 5-3-1, before the school corporation may adopt an ordinance under this section. At the public hearing, the governing body must provide the following information:
            (A) The annual debt service payments, applicable debt service tax rate, and total debt service

payments for the bonds proposed to be retired or refunded.
            (B) The annual debt service payments, applicable debt service fund tax rate, and total debt service payments for the proposed refunding bonds.
            (C) The annual increment for each year that the bonds that are being retired or refunded would have been outstanding and any other benefits to be derived from issuing the refunding bonds.
        (2) If the amount determined under subsection (c)(3) is:
            (A) more than forty-five percent (45%), notwithstanding IC 6-1.1-20-3.1(a) and IC 6-1.1-20-3.2(a), the school corporation shall use the petition and remonstrance process prescribed by IC 6-1.1-20-3.1(b) and IC 6-1.1-20-3.2(b) and more individuals must sign the petition for the bond refunding under this section than the number of individuals signing a remonstrance against the bond refunding; or
            (B) at least thirty percent (30%) but not more than forty-five percent (45%), the school corporation shall conduct a referendum on a public question regarding the bond refunding using the process for a referendum tax levy under IC 20-46-1 and the bond refunding must be approved by the eligible voters of the school corporation. The question to be submitted to the voters in the referendum must read as follows:
                "Shall ________ (insert the name of the school corporation) issue refunding bonds to refund not more than fifty percent (50%) of its outstanding bonds to provide an annual savings to the school's debt service fund that can be transferred from the school's debt service fund to the school's capital projects fund, transportation fund, or school bus replacement fund?".
Except as provided in subdivision (2)(A), IC 6-1.1-20 does not apply to bonds issued under this section.
    (e) A school corporation that desires to be an eligible school corporation under this section must, before July 1, 2013, and notwithstanding any other law, adopt an ordinance that sets forth the following:
        (1) The determinations made under subsection (c).
        (2) The result of the petition remonstrance process under subsection (d)(2)(A) or the result of the vote on the public question under subsection (d)(2)(B), whichever applies.
        (3) A determination providing for the:
            (A) issuance of bonds to refund not more than fifty percent (50%) of outstanding bonds or leases issued by or on behalf of the school corporation; and
            (B) payment of redemption premiums and the costs of the refunding.
        (4) With respect to the refunding bonds, the following:
            (A) The maximum principal amount.
            (B) The maximum interest rate.
            (C) The annual lease or debt service payment.
            (D) The final maturity date.
            (E) The estimated amount of the increment that will occur for each year that the bonds that are being retired or refunded by the issuance of refunding bonds would have been outstanding.
            (F) A finding that the annual debt service or lease payment on the refunding bonds will not increase the annual debt service or lease payment above the annual debt service or lease payment approved by the school corporation for the original project.
If the governing body adopts an ordinance under this section, the governing body must publish

notice of the adoption of the ordinance as required by IC 5-3-1.
    (f) An eligible school corporation may issue refunding bonds as permitted by this section. In addition, an eligible school corporation may extend the repayment period beyond the repayment period for the bonds that are being retired or refunded by the issuance of refunding bonds. However, the repayment period may be extended only once for a particular bond, and the extension may not exceed ten (10) years.
    (g) Property taxes imposed by an eligible school corporation to pay debt service for bonds permitted by this section shall be considered for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana and for calculating a person's credit under IC 6-1.1-20.6-7.5. However, property taxes imposed by an eligible school corporation through December 31, 2019, to pay debt service for bonds permitted by this section may not be considered in an eligible county, as used in Article 10, Section 1(h) of the Constitution of the State of Indiana, for purposes of calculating the limits to property tax liability under Article 10, Section 1 of the Constitution of the State of Indiana or for calculating a person's credit under IC 6-1.1-20.6-7.5.

SOURCE: IC 5-1-5-17; (11)PD4580.29. -->     SECTION 64. IC 5-1-5-17, AS ADDED BY P.L.146-2008, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17. (a) This section applies to bonds that are:
        (1) issued after June 30, 2008, by a local issuing body; and
        (2) payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes;
including bonds that are issued under a statute that permits the bonds to be issued without complying with any other law or otherwise expressly exempts the bonds from the requirements of this section.
    (b) Except as provided by section 2.5 of this chapter, the last date permitted under an agreement for the payment of principal and interest on bonds that are issued to retire or otherwise refund other revenue bonds or general obligation bonds may not extend beyond the maximum term of the bonds being refunded.
SOURCE: IC 5-1-5-18; (11)PD4580.30. -->     SECTION 65. IC 5-1-5-18, AS ADDED BY P.L.146-2008, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 18. (a) This section applies to bonds that are:
        (1) issued after June 30, 2008, by a local issuing body; and
        (2) payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes;
including bonds that are issued under a statute that permits the bonds to be issued without complying with any other law or otherwise expressly exempts the bonds from the requirements of this section.
    (b) Savings (as computed under section 2 of this chapter) that accrue from the issuance of bonds to retire or otherwise refund other bonds may be used only for the following purposes:
        (1) To maintain a debt service reserve fund for the refunding bonds at the level required under the terms of the refunding bonds, if the local issuing body adopts an ordinance, resolution, or order authorizing that use of the proceeds or earnings.
        (2) To pay the principal or interest, or both, on:
            (A) the refunding bonds; or
            (B) other bonds, if the issuing body approves an ordinance authorizing the use of the savings to pay principal or interest on other bonds.
        (3) To reduce the rate or amount of ad valorem property taxes, special benefit taxes on property, or tax increment revenues imposed by or allocated to the local issuing body.
     (c) An increment as computed under section 2.5 of this chapter that occurs from the issuance of bonds by an eligible school corporation to retire or otherwise refund other bonds as provided in

section 2.5 of this chapter may be used only to make transfers permitted by IC 20-46-7-15 for the eligible school corporation.

SOURCE: IC 5-1-14-10; (11)PD4580.31. -->     SECTION 66. IC 5-1-14-10, AS AMENDED BY P.L.182-2009(ss), SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. (a) If an issuer has issued obligations under a statute that establishes a maximum term or repayment period for the obligations, notwithstanding that statute, the issuer may continue to make payments of principal, interest, or both, on the obligations after the expiration of the term or period if principal or interest owed to owners of the obligations remains unpaid.
    (b) This section does not authorize the use of revenues or funds to make payments of principal and interest other than those revenues or funds that were pledged for the payments before the expiration of the term or period.
    (c) Except as otherwise provided by this section, IC 5-1-5-2.5, IC 16-22-8-43, IC 36-7-12-27, IC 36-7-14-25.1, or IC 36-9-13-30 (but only with respect to any bonds issued under IC 36-9-13-30 that are secured by a lease entered into by a political subdivision organized and existing under IC 16-22-8), the maximum term or repayment period for obligations issued after June 30, 2008, that are wholly or partially payable from ad valorem property taxes, special benefit taxes on property, or tax increment revenues derived from property taxes may not exceed:
        (1) the maximum applicable period under federal law, for obligations that are issued to evidence loans made or guaranteed by the federal government or a federal agency;
        (2) twenty-five (25) years, for obligations that are wholly or partially payable from tax increment revenues derived from property taxes; or
        (3) twenty (20) years, for obligations that are not described in subdivision (1) or (2), and are wholly or partially payable from ad valorem property taxes or special benefit taxes on property.
SOURCE: IC 5-1.5-5-4; (11)PD4580.32. -->     SECTION 67. IC 5-1.5-5-4, AS AMENDED BY P.L.235-2005, SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) Except as provided in subsection (c), and in order to assure the maintenance of the required debt service reserve in any reserve fund, a resolution authorizing the bank to issue bonds or notes may include a provision stating that:
        (1) the general assembly may annually appropriate to the bank for deposit in one (1) or more of the funds the sum, certified by the chairman of the board to the general assembly, that is necessary to restore one (1) or more of the funds to an amount equal to the required debt service reserve; and
        (2) the chairman annually, before December 1, shall make and deliver to the general assembly a certificate stating the sum required to restore the funds to that amount.
Nothing in this subsection creates a debt or liability of the state to make any appropriation.
    (b) All amounts received on account of money appropriated by the state to any reserve fund shall be held and applied in accordance with section 1(b) of this chapter. However, at the end of each fiscal year, if the amount in any reserve fund exceeds the required debt service reserve, any amount representing earnings or income received on account of any money appropriated to the reserve fund that exceeds the expenses of the bank for that fiscal year may be transferred to the general fund of the state.
    (c) Notwithstanding any other law, and except as provided by subsection (d), after June 30, 2005, the:
        (1) issuance by the bank of any indebtedness that incorporates the provisions set forth in subsection (a) or otherwise establishes a procedure for the bank or a person acting on behalf of the bank to certify to the general assembly the amount needed to restore a reserve fund or another fund to required levels; or
        (2) execution by the bank of any other agreement that creates a moral obligation of the state reserve fund subject to subsection (a) to pay all or part of any indebtedness issued by the bank;
is subject to the conditions set forth in subsection (e) and review by the budget committee and approval by the budget director as required by subsection (f).
    (d) If the budget committee does not conduct a review of a proposed transaction under subsection (c) within twenty-one (21) days after a request by the bank, the review is considered to have been conducted. If the budget director does not approve or disapprove a proposed transaction under subsection (c) within twenty-one (21) days after a request by the bank, the transaction is considered to have been approved.
     (e) Issuance by the bank of any indebtedness that establishes a reserve fund under subsection (a), the establishment of a procedure for certification, or the execution by the bank of any other agreement that creates a reserve fund subject to subsection (a) may be extended only for a project or a purpose that:
        (1) can be financed by a qualified entity under the law applying to financing by the qualified entity; or
        (2) is specifically authorized by the general assembly.
A reserve fund established under subsection (a) may be used only to finance the purchase of securities (as defined in IC 5-1.5-1-10) issued by entities described in IC 5-1.5-1-8.
    (f) The budget director may approve establishing a reserve fund under subsection (a) only if the following conditions are satisfied:
        (1) The project or purpose qualifies under subsection (e).
        (2) The documentation required by subsection (g) has been provided by the bank.
        (3) The bank has provided the budget agency with a written finding that revenues available to the qualified entity to pay annual debt service exceed the annual debt service requirements by at least twenty percent (20%).
        (4) If the financing is for a project or purpose that will produce ongoing revenue from fees or user charges, the qualified entity agrees to include a provision in the instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) that the qualified entity will first increase the rate of the fees or user charges, or both, by an amount sufficient to satisfy any shortfall in the reserve fund established under subsection (a) before subsection (a) is to be applied.
        (5) A qualified entity seeking the benefit of a reserve fund established under subsection (a) agrees to include a provision in the instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) that the qualified entity will pledge sufficient property taxes, user fees, hook up fees, connection fees, or any other available local revenues or any combination of those revenues that will be sufficient to satisfy any shortfall in the reserve fund established under subsection (a) before subsection (a) is to be applied.
        (6) The instrument governing the qualified entity's duties with respect to the security (as defined in IC 5-1.5-1-10) will include, to the extent the budget director determines is possible, a provision that money payable to the qualified entity by the state may be withheld by the auditor of state to recover any funds provided by the state, if subsection (a) is applied in connection with the qualified entity's securities.
    (g) If the bank proposes that a reserve fund be established under subsection (a) for a project or purpose, the bank shall provide to the budget committee and the budget agency at or before the time of the bank's request, the following information in writing:
        (1) A description of the project or purpose.
        (2) How the project or purpose satisfies the requirements of subsection (e).
        (3) The qualified entity's application for financing that was filed with the bank.
        (4) The estimated relative savings that can be achieved by establishing a reserve fund under subsection (a).
        (5) The finding required by subsection (f)(3) and proposed language for those instrument provisions required by subsection (f)(4) through (f)(6), if applicable.
        (6) Any other information required by the budget committee or budget agency.

SOURCE: IC 5-10-8-6; (11)PD4580.33. -->     SECTION 68. IC 5-10-8-6, AS AMENDED BY P.L.227-2007, SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) The state police department, conservation officers of the department of natural resources, gaming agents of the Indiana gaming commission, gaming control officers of the Indiana gaming commission, and the state excise police may establish common and unified plans of self-insurance for their employees, including retired employees, as separate entities of state government. These plans may be administered by a private agency, business firm, limited liability company, or corporation.
    (b) Except as provided in this section and IC 5-10-14, the state agencies listed in subsection (a) may not pay as the employer part of benefits for any employee or retiree an amount greater than that paid for other state employees for group insurance.
     (c) This subsection applies to a health benefit plan for an individual described in subsection (a). After June 30, 2011, at least one (1) time in each state fiscal year, the budget agency shall determine the average amount of contributions made under IC 5-10-8.5-15 and IC 5-10-8.5-16 to participants in a health reimbursement arrangement or other separate fund under IC 5-10-8.5 in the immediately preceding state fiscal year. In the state fiscal year beginning July 1, 2011, the amount determined under this section must exclude contributions made to persons described in IC 5-10-8.5-15(c) and IC 5-10-8.5-16(f). An amount equal to the average amount determined under this subsection multiplied by the number of participants (other than retired participants) in the plans described in subsection (a) shall be transferred to the plans described in subsection (a). The amount transferred under this subsection shall be proportionally allocated to each plan relative to the number of members in each plan. The amount allocated to a plan under this subsection shall be allocated among the participants in the plan in the same manner as other employer contributions. Funds shall be used only to reduce unfunded other post-employment benefit (OPEB) liability and not to increase benefits or reduce premiums.
SOURCE: IC 5-10-8-7.3; (11)PD4580.34. -->     SECTION 69. IC 5-10-8-7.3, AS AMENDED BY P.L.93-2006, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7.3. (a) As used in this section, "covered individual" means an individual who is:
        (1) covered under a self-insurance program established under section 7(b) of this chapter to provide group health coverage; or
        (2) entitled to services under a contract with a prepaid health care delivery plan that is entered into or renewed under section 7(c) of this chapter.
    (b) As used in this section, "early intervention services" means services provided to a first steps child under IC 12-12.7-2 and 20 U.S.C. 1432(4).
    (c) As used in this section, "first steps child" means an infant or toddler from birth through two (2) years of age who is enrolled in the Indiana first steps program and is a covered individual.
    (d) As used in this section, "first steps program" refers to the program established under IC 12-12.7-2 and 20 U.S.C. 1431 et seq. to meet the needs of:
        (1) children who are eligible for early intervention services; and
        (2) their families.
The term includes the coordination of all available federal, state, local, and private resources available to

provide early intervention services within Indiana.
    (e) As used in this section, "health benefits plan" means a:
        (1) self-insurance program established under section 7(b) of this chapter to provide group health coverage; or
        (2) contract with a prepaid health care delivery plan that is entered into or renewed under section 7(c) of this chapter.
    (f) A health benefits plan that provides coverage for early intervention services shall reimburse the first steps program for payments made by the program for early intervention services that are covered under the health benefits plan. a monthly fee established by the division of disability and rehabilitative services established by IC 12-9-1-1. The monthly fee shall be provided instead of claims processing of individual claims.
    (g) The reimbursement required under subsection (f) may not be applied to any annual or aggregate lifetime limit on the first steps child's coverage under the health benefits plan.
    (h) The first steps program may pay required deductibles, copayments, or other out-of-pocket expenses for a first steps child directly to a provider. A health benefits plan shall apply any payments made by the first steps program to the health benefits plan's deductibles, copayments, or other out-of-pocket expenses according to the terms and conditions of the health benefits plan.

SOURCE: IC 5-10-8.5-1; (11)PD4580.35. -->     SECTION 70. IC 5-10-8.5-1, AS ADDED BY P.L.44-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. (a) Except as provided in this section, this chapter applies to an individual who is one (1) of the following:
        (1) An employee of the executive, legislative, or judicial branch of state government.
        (2) A state elected or appointed officer.
        (3) A member of the general assembly.
        (4) An elected officer paid by the state.
        (5) An officer paid by the state under IC 33-23-5-10, IC 33-38-5-7, or IC 33-39-6-2.
    (b) An individual described in subsection (a) other than the following is a participant in the retirement medical benefits account:
         (1) A conservation officer of the department of natural resources.
        (2) An employee of the state excise police.
        (3) An employee of the state police department, other than the following:
            (A) An employee of the state police department who waived coverage under a common and unified plan of self-insurance under IC 5-10-8-6 before July 1, 2011.

             (B) An employee of the state police department who makes an election under IC 5-10-8.5-9.5.
            (C) An employee of the state police department who makes an election under IC 5-10-8.5-9.6.

SOURCE: IC 5-10-8.5-5; (11)PD4580.36. -->     SECTION 71. IC 5-10-8.5-5, AS ADDED BY P.L.44-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5. As used in this chapter, "employer" means the following:
        (1) For an elected officer, appointed officer, or employee of the executive branch of state government who is a participant in the retirement medical benefits account, the state, including any board, commission, department, division, authority, institution, establishment, facility, or governmental unit under the supervision of the state, having a payroll in relation to persons it immediately employs.
        (2) For a member of the general assembly or an employee of the legislative branch of state government:
            (A) the president pro tempore of the senate, for a member or an employee of the senate;
            (B) the speaker of the house, for a member or an employee of the house of representatives; or
            (C) the personnel subcommittee of the legislative council, for an employee of the legislative services agency.
        (3) For:
            (A) a justice;
            (B) a judge;
            (C) a prosecuting attorney;
            (D) an officer described under section 1(a)(5) of this chapter; or
            (E) an employee of the judicial branch of state government, including an employee of any board, commission, department, division, authority, institution, establishment, facility, or governmental unit under the supervision of the judicial branch, having a payroll in relation to persons it immediately employs;
        the Indiana supreme court.
SOURCE: IC 5-10-8.5-9.5; (11)PD4580.37. -->     SECTION 72. IC 5-10-8.5-9.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9.5. (a) This section applies only to a person who:
         (1) was an employee of the executive, legislative, or judicial branch of state government (other than an employee described in section 1(b)(1) through 1(b)(3) of this chapter);
        (2) after June 30, 2007, and before July 1, 2011, left employment in the position described in subdivision (1) and was employed by the state police department in a position other than as an eligible employee (as defined in IC 10-12-1-3); and
        (3) on July 1, 2011, is employed by the state police department in a position other than as an eligible employee (as defined in IC 10-12-1-3).
    (b) A person who satisfies the conditions of subsection (a) may after June 30, 2011, and before September 1, 2011, make a one (1) time irrevocable election to become a participant in the retirement medical benefits account.
A person who makes an election under this subsection to become a participant in the retirement medical benefits account may not also be a participant in the state police retiree medical benefit plan.
SOURCE: IC 5-10-8.5-9.6; (11)PD4580.38. -->     SECTION 73. IC 5-10-8.5-9.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9.6. (a) This section applies only to a person who:
         (1) is an employee of the executive, legislative, or judicial branch of state government (other than an employee described in section 1(b)(1) through 1(b)(3) of this chapter); and
        (2) after June 30, 2011, leaves employment in the position described in subdivision (1) and becomes employed by the state police department in a position other than as an eligible employee (as defined in IC 10-12-1-3).
    (b) A person who satisfies the conditions of subsection (a) may, not more than sixty (60) days after leaving employment as described in subsection (a)(1) and becoming employed by the state police department in a position other than as an eligible employee (as defined in IC 10-12-1-3), make a one (1) time irrevocable election to remain a participant in the retirement medical benefits account.
A person who makes an election under this subsection to remain a participant in the retirement medical benefits account may not also be a participant in the state police retiree medical benefit plan.
SOURCE: IC 5-10-8.5-15; (11)PD4580.39. -->     SECTION 74. IC 5-10-8.5-15, AS AMENDED BY P.L.182-2009(ss), SECTION 69, AND AS AMENDED BY P.L.182-2009(ss), SECTION 517, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. (a) Except as provided in subsections (c) and (d), a participant's employer shall make contributions annually to the account on behalf of the participant. The amount of the

contribution each fiscal year must equal the following, based on the participant's age on the last day of the calendar year that is in the fiscal year in which the contribution is made:
    Participant's Age in Years    Annual Contribution
                        Amount
        Less than 30            $    500
        At least 30, but less than 40    $    800
        At least 40, but less than 50    $1,100
        At least 50            $1,400
    (b) The budget agency shall determine by rule the date on which the contributions are credited to participants' subaccounts.
     (c) A contribution under this section shall not be made after June 30, 2011, to any of the following participants:
        (1) A conservation officer of the department of natural resources.
        (2) An employee of the state excise police.
        (3) An employee of the state police department, other than the following:
            (A) An employee of the state police department who waived coverage under a common and unified plan of self-insurance under IC 5-10-8-6 before July 1, 2011.

             (B) An employee of the state police department who makes an election under IC 5-10-8.5-9.5.
            (C) An employee of the state police department who makes an election under IC 5-10-8.5-9.6.

     (d) For individuals who are employed on June 30, 2011, the accrued annual contributions made in accordance with subsection (a) to an account described in section 14 of this chapter on behalf of the individuals for any years the individuals were employed as described in section 1(b)(1) through 1(b)(3) of this chapter shall be transferred to the respective plans described in IC 5-10-8-6(a) for those individuals and shall be used only to reduce the unfunded other post-employment benefit (OPEB) liability of those plans and not to increase benefits or reduce premiums.

SOURCE: IC 5-10-8.5-16; (11)PD4580.40. -->     SECTION 75. IC 5-10-8.5-16, AS AMENDED BY P.L.3-2008, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16. (a) Except as provided in subsection (f), if a participant meets all of the following conditions, the participant is entitled to receive an additional contribution credited to the participant's subaccount and computed as described in subsection (b):
        (1) The participant is:
            (A) on the participant's last day of service with the participant's employer, eligible for and has applied to receive a normal, unreduced retirement benefit from the public employee retirement fund of which the participant is a member; or
            (B) on the participant's last day of service, an elected or appointed officer.
        (2) After June 30, 2007, and before July 1, 2017, the participant terminates service:
            (A) from the employer; or
            (B) as an elected or appointed officer.
        (3) By the participant's last day of service, the participant has completed:
            (A) fifteen (15) years of service with the employer; or
            (B) ten (10) years of service as an elected or appointed officer.
    (b) The amount of the contribution to a participant's subaccount under this section is the product of:
        (1) the participant's years of service (rounded down to the nearest whole year):
            (A) with the participant's employer, determined on the participant's last day of service with the participant's employer; or
            (B) as an elected or appointed officer, determined on the participant's last day of service as an

elected or appointed officer; multiplied by
        (2) one thousand dollars ($1,000).
    (c) For a participant who has service with more than one (1) employer, the participant's years of service used in the computation under subsection (b)(1) is the sum of all of the participant's years of service.
    (d) The participant's employer must credit the additional contribution made under this section to the participant's subaccount not later than sixty (60) days after the participant's last day of service.
    (e) A participant who meets the requirements to receive an additional contribution under this section may receive the additional contribution only once, regardless of the participant's employment after the payment of the additional contribution.
     (f) An additional contribution under this section shall not be made after June 30, 2011, to any of the following participants:
        (1) A conservation officer of the department of natural resources.
        (2) An employee of the state excise police.
        (3) An employee of the state police department, other than the following:
            (A) An employee of the state police department who waived coverage under a common and unified plan of self-insurance under IC 5-10-8-6 before July 1, 2011.

             (B) An employee of the state police department who makes an election under IC 5-10-8.5-9.5.
            (C) An employee of the state police department who makes an election under IC 5-10-8.5-9.6.

    (f) (g) This section expires July 1, 2017.

SOURCE: IC 5-10-8.5-17; (11)PD4580.41. -->     SECTION 76. IC 5-10-8.5-17, AS ADDED BY P.L.44-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17. (a) A retired participant is entitled to receive a benefit from the account.
    (b) A participant who is not a retired participant is not entitled to receive a benefit from the account when the participant separates from service.
     (c) Years of service that accrued to an individual during the individual's service as an employee described in section 1(b)(1) through 1(b)(3) of this chapter may not be included in determining the individual's eligibility for the retirement medical benefits account under this chapter, regardless of whether the individual is a retired participant described in section 9 of this chapter.
SOURCE: IC 5-16-1-1.5; (11)PD4580.42. -->     SECTION 77. IC 5-16-1-1.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1.5. The governing board of any state educational institution, acting on behalf of said institution, may purchase materials in the manner provided by law and perform any work by means of its own employees and owned or leased equipment in the construction, rehabilitation, extension, maintenance or repair of any building, structure, improvement or facility of said institutions, without awarding a contract therefor, whenever the cost of such work shall be estimated to be less than one hundred fifty thousand dollars ($50,000). ($150,000).
SOURCE: IC 5-16-1-1.7; (11)PD4580.43. -->     SECTION 78. IC 5-16-1-1.7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1.7. On agricultural or forestry land owned or occupied by Purdue University and used by it for educational or research purposes, the trustees of the university may, upon a declaration of necessity recorded in its minutes, award contracts without advertising for bids or otherwise satisfying the requirements of this chapter, if the cost of work is estimated to be less than fifty two hundred thousand dollars ($50,000). ($200,000). However, bids shall be invited from at least three (3) or more persons, firms, limited liability companies, or corporations known to deal in the work required to be done. The minutes of the board shall show the names of those invited to bid.
SOURCE: IC 5-16-1-1.9; (11)PD4580.44. -->     SECTION 79. IC 5-16-1-1.9, AS AMENDED BY P.L.2-2007, SECTION 103, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1.9. Notwithstanding this article, a state

educational institution may award a contract for any construction or repair work to any building, structure, or improvement of the institution without advertising for bids and meeting other contract awarding requirements of this article whenever the estimated cost of the project is less than one hundred fifty thousand dollars ($50,000). ($150,000). However, in awarding any contract under this section the state educational institution must do the following:
        (1) Invite bids from at least three (3) persons, firms, limited liability companies, or corporations known to deal in the work required to be done.
        (2) Give notice of the project if the estimated cost of the project is more than twenty-five thousand dollars ($25,000). If required, notice must include a description of the work to be done and be given in at least one (1) newspaper of general circulation printed and published in the county in which the work is to be done.
        (3) Award the contract to the lowest and best bidder.

SOURCE: IC 6-2.5-3-9; (11)PD4580.47. -->     SECTION 80. IC 6-2.5-3-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) As used in this section, "excess" means the amount determined under subsection (b)(2).
    (b) The budget agency shall, before September 1 of each year, determine the following:
        (1) The amount of use taxes the state has collected in the previous state fiscal year from remote sellers with respect to remote sales sourced to Indiana.
        (2) The amount by which the amount determined under subdivision (1) exceeds one hundred fifty million dollars ($150,000,000), if any.
    (c) The budget agency shall before September 1 of each year certify to the state budget committee:
        (1) whether an excess exists; and
        (2) the amount of the excess, if any.
    (d) If the budget agency certifies to the budget committee that there is an excess in use tax collections on remote sales, the excess amount is appropriated from the state general fund for the state fiscal year in which the certification is made. The budget agency shall allot the excess amount for deposit in the pension stabilization fund established by IC 5-10.4-2-5.
    (e) This section expires June 30, 2013.

SOURCE: IC 6-2.5-3-10; (11)PD4580.48. -->     SECTION 81. IC 6-2.5-3-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. The department shall publish on the department's web site the information needed to communicate a person's obligation to remit use tax on the exercise of any right or power of ownership over tangible personal property in Indiana for which gross retail tax has not been paid, including purchases using the Internet or a catalog.
SOURCE: IC 6-2.5-10-1; (11)PD4580.49. -->     SECTION 82. IC 6-2.5-10-1, AS AMENDED BY P.L.146-2008, SECTION 317, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. (a) The department shall account for all state gross retail and use taxes that it collects.
    (b) The department shall deposit those collections in the following manner:
        (1) Ninety-nine and one hundred seventy-eight eight hundred forty-eight thousandths percent (99.178%) (99.848%) of the collections shall be paid into the state general fund.
        (2) Sixty-seven hundredths of one percent (0.67%) of the collections shall be paid into the public mass transportation fund established by IC 8-23-3-8.
        (3) (2) Twenty-nine thousandths of one percent (0.029%) of the collections shall be deposited into the industrial rail service fund established under IC 8-3-1.7-2.
        (4) (3) One hundred twenty-three thousandths of one percent (0.123%) of the collections shall be deposited into the commuter rail service fund established under IC 8-3-1.5-20.5.
SOURCE: IC 6-3-1-3.5; (11)PD4580.50. -->     SECTION 83. IC 6-3-1-3.5, AS AMENDED BY P.L.182-2009(ss), SECTION 186, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 3.5. When used in this article, the term "adjusted gross income" shall mean the following:
    (a) In the case of all individuals, "adjusted gross income" (as defined in Section 62 of the Internal Revenue Code), modified as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section 62 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state of the United States.
        (3) Subtract one thousand dollars ($1,000), or in the case of a joint return filed by a husband and wife, subtract for each spouse one thousand dollars ($1,000).
        (4) Subtract one thousand dollars ($1,000) for:
            (A) each of the exemptions provided by Section 151(c) of the Internal Revenue Code;
            (B) each additional amount allowable under Section 63(f) of the Internal Revenue Code; and
            (C) the spouse of the taxpayer if a separate return is made by the taxpayer and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer.
        (5) Subtract:
            (A) for taxable years beginning after December 31, 2004, one thousand five hundred dollars ($1,500) for each of the exemptions allowed under Section 151(c)(1)(B) of the Internal Revenue Code (as effective January 1, 2004); and
            (B) five hundred dollars ($500) for each additional amount allowable under Section 63(f)(1) of the Internal Revenue Code if the adjusted gross income of the taxpayer, or the taxpayer and the taxpayer's spouse in the case of a joint return, is less than forty thousand dollars ($40,000).
        This amount is in addition to the amount subtracted under subdivision (4).
        (6) Subtract an amount equal to the lesser of:
            (A) that part of the individual's adjusted gross income (as defined in Section 62 of the Internal Revenue Code) for that taxable year that is subject to a tax that is imposed by a political subdivision of another state and that is imposed on or measured by income; or
            (B) two thousand dollars ($2,000).
        (7) Add an amount equal to the total capital gain portion of a lump sum distribution (as defined in Section 402(e)(4)(D) of the Internal Revenue Code) if the lump sum distribution is received by the individual during the taxable year and if the capital gain portion of the distribution is taxed in the manner provided in Section 402 of the Internal Revenue Code.
        (8) Subtract any amounts included in federal adjusted gross income under Section 111 of the Internal Revenue Code as a recovery of items previously deducted as an itemized deduction from adjusted gross income.
        (9) Subtract any amounts included in federal adjusted gross income under the Internal Revenue Code which amounts were received by the individual as supplemental railroad retirement annuities under 45 U.S.C. 231 and which are not deductible under subdivision (1).
        (10) Add an amount equal to the deduction allowed under Section 221 of the Internal Revenue Code for married couples filing joint returns if the taxable year began before January 1, 1987.
        (11) Add an amount equal to the interest excluded from federal gross income by the individual for the taxable year under Section 128 of the Internal Revenue Code if the taxable year began before

January 1, 1985.
        (12) Subtract an amount equal to the amount of federal Social Security and Railroad Retirement benefits included in a taxpayer's federal gross income by Section 86 of the Internal Revenue Code.
        (13) In the case of a nonresident taxpayer or a resident taxpayer residing in Indiana for a period of less than the taxpayer's entire taxable year, the total amount of the deductions allowed pursuant to subdivisions (3), (4), (5), and (6) shall be reduced to an amount which bears the same ratio to the total as the taxpayer's income taxable in Indiana bears to the taxpayer's total income.
        (14) In the case of an individual who is a recipient of assistance under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7, subtract an amount equal to that portion of the individual's adjusted gross income with respect to which the individual is not allowed under federal law to retain an amount to pay state and local income taxes.
        (15) In the case of an eligible individual, subtract the amount of a Holocaust victim's settlement payment included in the individual's federal adjusted gross income.
        (16) For taxable years beginning after December 31, 1999, subtract an amount equal to the portion of any premiums paid during the taxable year by the taxpayer for a qualified long term care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the taxpayer's spouse, or both.
        (17) Subtract an amount equal to the lesser of:
            (A) for a taxable year:
                (i) including any part of 2004, the amount determined under subsection (f); and
                (ii) beginning after December 31, 2004, two thousand five hundred dollars ($2,500); or
            (B) the amount of property taxes that are paid during the taxable year in Indiana by the individual on the individual's principal place of residence.
        (18) Subtract an amount equal to the amount of a September 11 terrorist attack settlement payment included in the individual's federal adjusted gross income.
        (19) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
        (20) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
        (21) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
        (22) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic production activities for the taxable year under Section 199 of the Internal Revenue Code for federal income tax purposes.
        (23) Subtract an amount equal to the amount of the taxpayer's qualified military income that was not excluded from the taxpayer's gross income for federal income tax purposes under Section 112 of the Internal Revenue Code.
        (24) Subtract income that is:
            (A) exempt from taxation under IC 6-3-2-21.7; and
            (B) included in the individual's federal adjusted gross income under the Internal Revenue Code.


        (25) Subtract any amount of a credit (including an advance refund of the credit) that is provided to an individual under 26 U.S.C. 6428 (federal Economic Stimulus Act of 2008) and included in the individual's federal adjusted gross income.
        (26) Add any amount of unemployment compensation excluded from federal gross income, as defined in Section 61 of the Internal Revenue Code, under Section 85(c) of the Internal Revenue Code.
        (27) Add the amount excluded from gross income under Section 108(a)(1)(e) of the Internal Revenue Code for the discharge of debt on a qualified principal residence.
        (28) Add an amount equal to any income not included in gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code. Subtract the amount necessary from the adjusted gross income of any taxpayer that added an amount to adjusted gross income in a previous year to offset the amount included in federal gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code.
        (29) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified restaurant property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (30) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified retail improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (31) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that claimed the special allowance for qualified disaster assistance property under Section 168(n) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the special allowance not been claimed for the property.
        (32) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 179C of the Internal Revenue Code to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (33) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 181 of the Internal Revenue Code to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (34) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that treated a loss from the sale or exchange of preferred stock in:
            (A) the Federal National Mortgage Association, established under the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); or
            (B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
        as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the

current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.
         (35) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code for the expensing of environmental remediation costs.
        (36) Add the amount excluded from gross income under Section 408(d)(8) of the Internal Revenue Code for a charitable distribution from an individual retirement plan.
        (37) Add the amount deducted from gross income under Section 222 of the Internal Revenue Code for qualified tuition and related expenses.
        (38) Add the amount deducted from gross income under Section 62(2)(D) of the Internal Revenue Code for certain expenses of elementary and secondary school teachers.
        (39) Add the amount excluded from gross income under Section 127 of the Internal Revenue Code as annual employer provided education expenses.
        (40) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code for any qualified advanced mine safety equipment property.
        (41) Add the monthly amount excluded from gross income under Section 132(f)(1)(A) and 132(f)(1)(B) that exceeds one hundred dollars ($100) a month for a qualified transportation fringe.
        (42) Add the amount deducted from gross income under Section 221 of the Internal Revenue Code that exceeds the amount the taxpayer could deduct under Section 221 of the Internal Revenue Code before it was amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312).
        (43) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any qualified leasehold improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (44) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a motorsports entertainment complex in service during the taxable year and that was classified as 7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (45) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
        (46) Add the amount necessary to make the adjusted gross income of any taxpayer for which tax was not imposed on the net recognized built-in gain of an S corporation under Section 1374(d)(7) of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240) equal to the amount of adjusted gross income that would have been computed before Section 1374(d)(7) of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240).

    (b) In the case of corporations, the same as "taxable income" (as defined in Section 63 of the Internal Revenue Code) adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.


        (2) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section 170 of the Internal Revenue Code.
        (3) Add an amount equal to any deduction or deductions allowed or allowable pursuant to Section 63 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state of the United States.
        (4) Subtract an amount equal to the amount included in the corporation's taxable income under Section 78 of the Internal Revenue Code.
        (5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
        (6) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
        (7) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
        (8) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic production activities for the taxable year under Section 199 of the Internal Revenue Code for federal income tax purposes.
        (9) Add to the extent required by IC 6-3-2-20 the amount of intangible expenses (as defined in IC 6-3-2-20) and any directly related intangible interest expenses (as defined in IC 6-3-2-20) for the taxable year that reduced the corporation's taxable income (as defined in Section 63 of the Internal Revenue Code) for federal income tax purposes.
        (10) Add an amount equal to any deduction for dividends paid (as defined in Section 561 of the Internal Revenue Code) to shareholders of a captive real estate investment trust (as defined in section 34.5 of this chapter).
        (11) Subtract income that is:
            (A) exempt from taxation under IC 6-3-2-21.7; and
            (B) included in the corporation's taxable income under the Internal Revenue Code.
        (12) Add an amount equal to any income not included in gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to offset the amount included in federal gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code.
        (13) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified restaurant property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the

year that it was placed in service.
        (14) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified retail improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (15) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that claimed the special allowance for qualified disaster assistance property under Section 168(n) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the special allowance not been claimed for the property.
        (16) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 179C of the Internal Revenue Code to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (17) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 181 of the Internal Revenue Code to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (18) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that treated a loss from the sale or exchange of preferred stock in:
            (A) the Federal National Mortgage Association, established under the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); or
            (B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
        as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.
         (19) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code for the expensing of environmental remediation costs.
        (20) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code for any qualified advanced mine safety equipment property.
        (21) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any qualified leasehold improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (22) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a motorsports entertainment complex in service during the taxable year and that was classified as 7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (23) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).


    (c) In the case of life insurance companies (as defined in Section 816(a) of the Internal Revenue Code) that are organized under Indiana law, the same as "life insurance company taxable income" (as defined in Section 801 of the Internal Revenue Code), adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction allowed or allowable under Section 170 of the Internal Revenue Code.
        (3) Add an amount equal to a deduction allowed or allowable under Section 805 or Section 831(c) of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state.
        (4) Subtract an amount equal to the amount included in the company's taxable income under Section 78 of the Internal Revenue Code.
        (5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
        (6) Add an amount equal to any deduction allowed under Section 172 or Section 810 of the Internal Revenue Code.
        (7) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
        (8) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic production activities for the taxable year under Section 199 of the Internal Revenue Code for federal income tax purposes.
        (9) Subtract income that is:
            (A) exempt from taxation under IC 6-3-2-21.7; and
            (B) included in the insurance company's taxable income under the Internal Revenue Code.
        (10) Add an amount equal to any income not included in gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to offset the amount included in federal gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code.
        (11) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified restaurant property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (12) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified retail improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that claimed the special allowance for qualified disaster assistance property under Section 168(n) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the special allowance not been claimed for the property.
        (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 179C of the Internal Revenue Code to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (15) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 181 of the Internal Revenue Code to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (16) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that treated a loss from the sale or exchange of preferred stock in:
            (A) the Federal National Mortgage Association, established under the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); or
            (B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
        as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.
        (17) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal Revenue Code that is active financing income under Subpart F of Subtitle A, Chapter 1, Subchapter N of the Internal Revenue Code.
         (18) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any qualified leasehold improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (19) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a motorsports entertainment complex in service during the taxable year and that was classified as 7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (20) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
        (21) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code for the expensing of environmental remediation costs.
        (22) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code for any qualified advanced mine safety equipment property.

    (d) In the case of insurance companies subject to tax under Section 831 of the Internal Revenue Code and organized under Indiana law, the same as "taxable income" (as defined in Section 832 of the Internal Revenue Code), adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Add an amount equal to any deduction allowed or allowable under Section 170 of the Internal Revenue Code.
        (3) Add an amount equal to a deduction allowed or allowable under Section 805 or Section 831(c) of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by any state.
        (4) Subtract an amount equal to the amount included in the company's taxable income under Section 78 of the Internal Revenue Code.
        (5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
        (6) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
        (7) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
        (8) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic production activities for the taxable year under Section 199 of the Internal Revenue Code for federal income tax purposes.
        (9) Subtract income that is:
            (A) exempt from taxation under IC 6-3-2-21.7; and
            (B) included in the insurance company's taxable income under the Internal Revenue Code.
        (10) Add an amount equal to any income not included in gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to offset the amount included in federal gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code.
        (11) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified restaurant property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the

year that it was placed in service.
        (12) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified retail improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that claimed the special allowance for qualified disaster assistance property under Section 168(n) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the special allowance not been claimed for the property.
        (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 179C of the Internal Revenue Code to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (15) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 181 of the Internal Revenue Code to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (16) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that treated a loss from the sale or exchange of preferred stock in:
            (A) the Federal National Mortgage Association, established under the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); or
            (B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
        as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.
        (17) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal Revenue Code that is active financing income under Subpart F of Subtitle A, Chapter 1, Subchapter N of the Internal Revenue Code.
         (18) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any qualified leasehold improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (19) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a motorsports entertainment complex in service during the taxable year and that was classified as 7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (20) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
        (21) Add the amount deducted from gross income under Section 198 of the Internal Revenue

Code for the expensing of environmental remediation costs.
        (22) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code for any qualified advanced mine safety equipment property.

    (e) In the case of trusts and estates, "taxable income" (as defined for trusts and estates in Section 641(b) of the Internal Revenue Code) adjusted as follows:
        (1) Subtract income that is exempt from taxation under this article by the Constitution and statutes of the United States.
        (2) Subtract an amount equal to the amount of a September 11 terrorist attack settlement payment included in the federal adjusted gross income of the estate of a victim of the September 11 terrorist attack or a trust to the extent the trust benefits a victim of the September 11 terrorist attack.
        (3) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
        (4) Add an amount equal to any deduction allowed under Section 172 of the Internal Revenue Code.
        (5) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
        (6) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic production activities for the taxable year under Section 199 of the Internal Revenue Code for federal income tax purposes.
        (7) Subtract income that is:
            (A) exempt from taxation under IC 6-3-2-21.7; and
            (B) included in the taxpayer's taxable income under the Internal Revenue Code.
        (8) Add an amount equal to any income not included in gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to offset the amount included in federal gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code.
        (9) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified restaurant property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (10) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified retail improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount

of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
        (11) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that claimed the special allowance for qualified disaster assistance property under Section 168(n) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the special allowance not been claimed for the property.
        (12) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 179C of the Internal Revenue Code to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (13) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 181 of the Internal Revenue Code to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
        (14) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that treated a loss from the sale or exchange of preferred stock in:
            (A) the Federal National Mortgage Association, established under the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); or
            (B) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
        as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.
        (15) Add the amount excluded from gross income under Section 108(a)(1)(e) of the Internal Revenue Code for the discharge of debt on a qualified principal residence.
         (16) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any qualified leasehold improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (17) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a motorsports entertainment complex in service during the taxable year and that was classified as 7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
        (18) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the Internal Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
        (19) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code for the expensing of environmental remediation costs.
        (20) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code for any qualified advanced mine safety equipment property.
        (21) Add the amount necessary to make the adjusted gross income of any taxpayer for which tax was not imposed on the net recognized built-in gain of an S corporation under Section

1374(d)(7) of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240) equal to the amount of adjusted gross income that would have been computed before Section 1374(d)(7) of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
    (f) This subsection applies only to the extent that an individual paid property taxes in 2004 that were imposed for the March 1, 2002, assessment date or the January 15, 2003, assessment date. The maximum amount of the deduction under subsection (a)(17) is equal to the amount determined under STEP FIVE of the following formula:
        STEP ONE: Determine the amount of property taxes that the taxpayer paid after December 31, 2003, in the taxable year for property taxes imposed for the March 1, 2002, assessment date and the January 15, 2003, assessment date.
        STEP TWO: Determine the amount of property taxes that the taxpayer paid in the taxable year for the March 1, 2003, assessment date and the January 15, 2004, assessment date.
        STEP THREE: Determine the result of the STEP ONE amount divided by the STEP TWO amount.
        STEP FOUR: Multiply the STEP THREE amount by two thousand five hundred dollars ($2,500).
        STEP FIVE: Determine the sum of the STEP FOUR amount and two thousand five hundred dollars ($2,500).

SOURCE: IC 6-3-1-11; (11)PD4580.51. -->     SECTION 84. IC 6-3-1-11, AS AMENDED BY P.L.113-2010, SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 11. (a) Except as provided in subsection (d), the term "Internal Revenue Code" means the Internal Revenue Code of 1986 of the United States as amended and in effect on January 1, 2010. 2011.
    (b) Whenever the Internal Revenue Code is mentioned in this article, the particular provisions that are referred to, together with all the other provisions of the Internal Revenue Code in effect on January 1, 2010, 2011, that pertain to the provisions specifically mentioned, shall be regarded as incorporated in this article by reference and have the same force and effect as though fully set forth in this article. To the extent the provisions apply to this article, regulations adopted under Section 7805(a) of the Internal Revenue Code and in effect on January 1, 2010, 2011, shall be regarded as rules adopted by the department under this article, unless the department adopts specific rules that supersede the regulation.
    (c) An amendment to the Internal Revenue Code made by an act passed by Congress before January 1, 2010, 2011, that is effective for any taxable year that began before January 1, 2010, 2011, and that affects:
        (1) individual adjusted gross income (as defined in Section 62 of the Internal Revenue Code);
        (2) corporate taxable income (as defined in Section 63 of the Internal Revenue Code);
        (3) trust and estate taxable income (as defined in Section 641(b) of the Internal Revenue Code);
        (4) life insurance company taxable income (as defined in Section 801(b) of the Internal Revenue Code);
        (5) mutual insurance company taxable income (as defined in Section 821(b) of the Internal Revenue Code); or
        (6) taxable income (as defined in Section 832 of the Internal Revenue Code);
is also effective for that same taxable year for purposes of determining adjusted gross income under section 3.5 of this chapter.
     (d) The following provisions of the Internal Revenue Code that were amended by the Tax Relief Act, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312) are treated as though they were not amended by the Tax Relief Act, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312):
        (1) Section 1367(a)(2) of the Internal Revenue Code pertaining to an adjustment of basis of the

stock of shareholders.
        (2) Section 871(k)(1)(c) and 871(k)(2)(C) of the Internal Revenue Code pertaining the treatment of certain dividends of regulated investment companies.
        (3) Section 897(h)(4)(A)(ii) of the Internal Revenue Code pertaining to regulated investment companies qualified entity treatment.
        (4) Section 512(b)(13)(E)(iv) of the Internal Revenue Code pertaining to the modification of tax treatment of certain payments to controlling exempt organizations.
        (5) Section 613A(c)(6)(H)(ii) of the Internal Revenue Code pertaining to the limitations on percentage depletion in the case of oil and gas wells.
        (6) Section 451(i)(3) of the Internal Revenue Code pertaining to special rule for sales or dispositions to implement Federal Energy Regulatory Commission or state electric restructuring policy for qualified electric utilities.
        (7) Section 954(c)(6) of the Internal Revenue Code pertaining to the look-through treatment of payments between related controlled foreign corporation under foreign personal holding company rules.
The department shall develop forms and adopt any necessary rules under IC 4-22-2 to implement this subsection.

SOURCE: IC 6-3-2-22; (11)PD4580.52. -->     SECTION 85. IC 6-3-2-22, AS ADDED BY HEA 1003-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 22. (a) The following definitions apply throughout this section:
        (1) "Dependent child" means an individual who:
            (A) is eligible to receive a free elementary or high school education in an Indiana school corporation;
            (B) qualifies as a dependent (as defined in Section 152 of the Internal Revenue Code) of the taxpayer; and
            (C) is the natural or adopted child or of the taxpayer or, if custody of the child has been awarded in a court proceeding to someone other than the mother or father, the court appointed guardian or custodian of the child.
        If the parents of a child are divorced, the term refers to the parent who is eligible to take the exemption for the child under Section 151 of the Internal Revenue Code.
        (2) "Education expenditure" refers to any expenditures made in connection with enrollment, attendance, or participation of the taxpayer's dependent child in a private elementary or high school education program. The term includes tuition, fees, computer software, textbooks, workbooks, curricula, school supplies (other than personal computers), and other written materials used primarily for academic instruction or for academic tutoring, or both.
        (3) "Private elementary or high school education program" means attendance at:
            (A) home schooling; a nonpublic school (as defined in IC 20-18-2-12); or
            (B) attendance at a private an accredited nonpublic school;
        in Indiana that satisfies a child's obligation under IC 20-33-2 for compulsory attendance at a school. The term does not include the delivery of instructional service in a home setting to a dependent child who is enrolled in a school corporation or a charter school.
    (b) This section applies to taxable years beginning after December 31, 2010.
    (c) A taxpayer who makes an unreimbursed education expenditure during the taxpayer's taxable year is entitled to a deduction against the taxpayer's adjusted gross income in the taxable year.
    (d) The amount of the deduction is:
        (1) one thousand dollars ($1,000); multiplied by
        (2) the number of the taxpayer's dependent children for whom the taxpayer made education expenditures in the taxable year.
A husband and wife are entitled to only one (1) deduction under this section.
    (e) To receive the deduction provided by this section, a taxpayer must claim the deduction on the taxpayer's annual state tax return or returns in the manner prescribed by the department.
SOURCE: IC 6-3-4-1.5; (11)PD4580.54. -->     SECTION 86. IC 6-3-4-1.5, AS AMENDED BY P.L.131-2008, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1.5. (a) If a professional preparer files more than:
         (1) one hundred (100) returns in a calendar year before 2012;
        (2) fifty (50) returns in calendar year 2012; and
        (3) ten (10) returns in a calendar year after 2012;

for persons described in section 1(1) or 1(2) of this chapter, in the immediately following calendar year the professional preparer shall file returns for persons described in section 1(1) or 1(2) of this chapter in an electronic format specified by the department.
    (b) A professional preparer described in subsection (a) is not required to file a return in an electronic format if the taxpayer requests in writing that the return not be filed in an electronic format. Returns filed by a professional preparer under this subsection shall not be used in determining the professional preparer's requirement to file returns in an electronic format.
    (c) After December 31, 2010, A professional preparer who does not comply with subsection (a) is subject to a penalty of fifty dollars ($50) for each return not filed in an electronic format, with a maximumpenalty of twenty-five thousand dollars ($25,000) per calendar year.
SOURCE: IC 6-3.1-21-6; (11)PD4580.55. -->     SECTION 87. IC 6-3.1-21-6, AS AMENDED BY P.L.1-2009, SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 6. (a) Except as provided by subsection (b), an individual who is eligible for an earned income tax credit under Section 32 of the Internal Revenue Code, as it existed before being amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312), is eligible for a credit under this chapter equal to nine percent (9%) of the amount of the federal earned income tax credit that the individual:
        (1) is eligible to receive in the taxable year; and
        (2) claimed for the taxable year;
under Section 32 of the Internal Revenue Code as it existed before being amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312).
    (b) In the case of a nonresident taxpayer or a resident taxpayer residing in Indiana for a period of less than the taxpayer's entire taxable year, the amount of the credit is equal to the product of:
        (1) the amount determined under subsection (a); multiplied by
        (2) the quotient of the taxpayer's income taxable in Indiana divided by the taxpayer's total income.
    (c) If the credit amount exceeds the taxpayer's adjusted gross income tax liability for the taxable year, the excess, less any advance payments of the credit made by the taxpayer's employer under IC 6-3-4-8 that reduce the excess, shall be refunded to the taxpayer.
SOURCE: IC 6-3.5-1.1-9; (11)PD4580.56. -->     SECTION 88. IC 6-3.5-1.1-9, AS AMENDED BY P.L.113-2010, SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) Revenue derived from the imposition of the county adjusted gross income tax shall, in the manner prescribed by this section, be distributed to the county that imposed it. The amount to be distributed to a county during an ensuing calendar year equals the amount of county adjusted gross income tax revenue that the budget agency determines has been:
        (1) received from that county for a taxable year ending before the calendar year in which the determination is made; and
        (2) reported on an annual return or amended return processed by the department in the state fiscal year ending before July 1 of the calendar year in which the determination is made;
as adjusted for refunds of county adjusted gross income tax made in the state fiscal year.
    (b) Before August 2 of each calendar year, the budget agency shall certify to the county auditor of each adopting county the amount determined under subsection (a) plus the amount of interest in the county's account that has accrued and has not been included in a certification made in a preceding year. The amount certified is the county's "certified distribution" for the immediately succeeding calendar year. The amount certified shall be adjusted under subsections (c), (d), (e), (f), (g), and (h). The budget agency shall provide the county council with an informative summary of the calculations used to determine the certified distribution. The summary of calculations must include:
        (1) the amount reported on individual income tax returns processed by the department during the previous fiscal year;
        (2) adjustments for over distributions in prior years;
        (3) adjustments for clerical or mathematical errors in prior years;
        (4) adjustments for tax rate changes; and
        (5) the amount of excess account balances to be distributed under IC 6-3.5-1.1-21.1.
The budget agency shall also certify information concerning the part of the certified distribution that is attributable to a tax rate under section 24, 25, or 26 of this chapter. This information must be certified to the county auditor, the department, and the department of local government finance not later than September 1 of each calendar year. The part of the certified distribution that is attributable to a tax rate under section 24, 25, or 26 of this chapter may be used only as specified in those provisions.
    (c) The budget agency shall certify an amount less than the amount determined under subsection (b) if the budget agency determines that the reduced distribution is necessary to offset overpayments made in a calendar year before the calendar year of the distribution. The budget agency may reduce the amount of the certified distribution over several calendar years so that any overpayments are offset over several years rather than in one (1) lump sum.
    (d) The budget agency shall adjust the certified distribution of a county to correct for any clerical or mathematical errors made in any previous certification under this section. The budget agency may reduce the amount of the certified distribution over several calendar years so that any adjustment under this subsection is offset over several years rather than in one (1) lump sum.
    (e) The budget agency shall adjust the certified distribution of a county to provide the county with the distribution required under section 10(b) of this chapter.
    (f) This subsection applies to a county that initially imposes, increases, decreases, or rescinds a tax or tax rate under this chapter before November 1 in the same calendar year in which the budget agency makes a certification under this section. The budget agency shall adjust the certified distribution of a county to provide for a distribution in the immediately following calendar year and in each calendar year thereafter. The budget agency shall provide for a full transition to certification of distributions as provided in subsection (a)(1) through (a)(2) in the manner provided in subsection (c). If the county imposes, increases, decreases, or rescinds a tax or tax rate under this chapter after the date for which a certification under subsection (b) is based, the budget agency shall adjust the certified distribution of the county after August 1 of the calendar year. The adjustment shall reflect any other adjustment required under subsections (c), (d), (e), (g), and (h). The adjusted certification shall be treated as the county's "certified distribution" for the immediately succeeding calendar year. The budget agency shall certify the adjusted certified

distribution to the county auditor for the county and provide the county council with an informative summary of the calculations that revises the informative summary provided in subsection (b) and reflects the changes made in the adjustment.
    (g) The budget agency shall adjust the certified distribution of a county to provide the county with the distribution required under section 3.3 of this chapter beginning not later than the tenth month after the month in which additional revenue from the tax authorized under section 3.3 of this chapter is initially collected.
    (h) This subsection applies in the year in which a county initially imposes a tax rate under section 24 of this chapter. Notwithstanding any other provision, the budget agency shall adjust the part of the county's certified distribution that is attributable to the tax rate under section 24 of this chapter to provide for a distribution in the immediately following calendar year equal to the result of:
        (1) the sum of the amounts determined under STEP ONE through STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which the county initially imposes a tax rate under section 24 of this chapter; multiplied by
        (2) two (2).
     (i) The budget agency shall before May 1 of every odd-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following two (2) calendar years.
    (j) The budget agency shall before May 1 of every even-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following calendar year.
    (k) The estimates under subsections (i) and (j) must specify the amount of the estimated certified distributions that are attributable to the additional rate authorized under section 24 of this chapter, the additional rate authorized under section 25 of this chapter, the additional rate authorized under section 26 of this chapter, and any other additional rates authorized under this chapter.

SOURCE: IC 6-3.5-1.1-21.1; (11)PD4580.57. -->     SECTION 89. IC 6-3.5-1.1-21.1, AS AMENDED BY SEA 60-2011, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 21.1. (a) If the budget agency determines that a sufficient the balance exists in a county account in excess of the amount necessary, when added to other money that will be deposited in the account after the date of the determination, to make exceeds one hundred fifty percent (150%) of the certified distributions to be made to the county in the ensuing year, the budget agency shall make a supplemental distribution to a the county from the county's adjusted gross income tax account.
    (b) A supplemental distribution described in subsection (a) must be:
        (1) made in January of the ensuing calendar year; and
        (2) allocated and, subject to subsection (d), used in the same manner as certified distributions. However, the part of a supplemental distribution that is attributable to an additional rate authorized under this chapter:
            (A) shall be used for the purpose specified in the statute authorizing the additional rate; and
            (B) is not required to be deposited in the unit's rainy day fund.

The amount of the supplemental distribution is equal to the amount by which the balance in the county account exceeds one hundred fifty percent (150%) of the certified distributions to be made to the county in the ensuing year.
    (c) A determination under this section must be made before November 2.
    (d) This subsection applies to that part of a distribution made under this section that is allocated and available for use in the same manner as certified shares. The civil taxing unit receiving the money shall

deposit the money in the civil taxing unit's rainy day fund established under IC 36-1-8-5.1.

SOURCE: IC 6-3.5-6-17; (11)PD4580.58. -->     SECTION 90. IC 6-3.5-6-17, AS AMENDED BY P.L.113-2010, SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17. (a) Revenue derived from the imposition of the county option income tax shall, in the manner prescribed by this section, be distributed to the county that imposed it. The amount that is to be distributed to a county during an ensuing calendar year equals the amount of county option income tax revenue that the budget agency determines has been:
        (1) received from that county for a taxable year ending in a calendar year preceding the calendar year in which the determination is made; and
        (2) reported on an annual return or amended return processed by the department in the state fiscal year ending before July 1 of the calendar year in which the determination is made;
as adjusted (as determined after review of the recommendation of the budget agency) for refunds of county option income tax made in the state fiscal year.
    (b) Before August 2 of each calendar year, the budget agency shall certify to the county auditor of each adopting county the amount determined under subsection (a) plus the amount of interest in the county's account that has accrued and has not been included in a certification made in a preceding year. The amount certified is the county's "certified distribution" for the immediately succeeding calendar year. The amount certified shall be adjusted, as necessary, under subsections (c), (d), (e), and (f). The budget agency shall provide the county council with an informative summary of the calculations used to determine the certified distribution. The summary of calculations must include:
        (1) the amount reported on individual income tax returns processed by the department during the previous fiscal year;
        (2) adjustments for over distributions in prior years;
        (3) adjustments for clerical or mathematical errors in prior years;
        (4) adjustments for tax rate changes; and
        (5) the amount of excess account balances to be distributed under IC 6-3.5-6-17.3.
The budget agency shall also certify information concerning the part of the certified distribution that is attributable to a tax rate under section 30, 31, or 32 of this chapter. This information must be certified to the county auditor and to the department of local government finance not later than September 1 of each calendar year. The part of the certified distribution that is attributable to a tax rate under section 30, 31, or 32 of this chapter may be used only as specified in those provisions.
    (c) The budget agency shall certify an amount less than the amount determined under subsection (b) if the budget agency determines that the reduced distribution is necessary to offset overpayments made in a calendar year before the calendar year of the distribution. The budget agency may reduce the amount of the certified distribution over several calendar years so that any overpayments are offset over several years rather than in one (1) lump sum.
    (d) The budget agency shall adjust the certified distribution of a county to correct for any clerical or mathematical errors made in any previous certification under this section. The budget agency may reduce the amount of the certified distribution over several calendar years so that any adjustment under this subsection is offset over several years rather than in one (1) lump sum.
    (e) This subsection applies to a county that imposes, increases, decreases, or rescinds a tax or tax rate under this chapter before November 1 in the same calendar year in which the budget agency makes a certification under this section. The budget agency shall adjust the certified distribution of a county to provide for a distribution in the immediately following calendar year and in each calendar year thereafter. The budget agency shall provide for a full transition to certification of distributions as provided in subsection (a)(1) through (a)(2) in the manner provided in subsection (c). If the county imposes, increases,

decreases, or rescinds a tax or tax rate under this chapter after the date for which a certification under subsection (b) is based, the budget agency shall adjust the certified distribution of the county after August 1 of the calendar year. The adjustment shall reflect any other adjustment required under subsections (c), (d), and (f). The adjusted certification shall be treated as the county's "certified distribution" for the immediately succeeding calendar year. The budget agency shall certify the adjusted certified distribution to the county auditor for the county and provide the county council with an informative summary of the calculations that revises the informative summary provided in subsection (b) and reflects the changes made in the adjustment.
    (f) This subsection applies in the year a county initially imposes a tax rate under section 30 of this chapter. Notwithstanding any other provision, the budget agency shall adjust the part of the county's certified distribution that is attributable to the tax rate under section 30 of this chapter to provide for a distribution in the immediately following calendar year equal to the result of:
        (1) the sum of the amounts determined under STEP ONE through STEP FOUR of IC 6-3.5-1.5-1(a) in the year in which the county initially imposes a tax rate under section 30 of this chapter; multiplied by
        (2) the following:
            (A) In a county containing a consolidated city, one and five-tenths (1.5).
            (B) In a county other than a county containing a consolidated city, two (2).
    (g) One-twelfth (1/12) of each adopting county's certified distribution for a calendar year shall be distributed from its account established under section 16 of this chapter to the appropriate county treasurer on the first day of each month of that calendar year.
    (h) Upon receipt, each monthly payment of a county's certified distribution shall be allocated among, distributed to, and used by the civil taxing units of the county as provided in sections 18 and 19 of this chapter.
    (i) All distributions from an account established under section 16 of this chapter shall be made by warrants issued by the auditor of state to the treasurer of state ordering the appropriate payments.
     (j) The budget agency shall before May 1 of every odd-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following two (2) calendar years.
    (k) The budget agency shall before May 1 of every even-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following calendar year.
    (l) The estimates under subsections (j) and (k) must specify the amount of the estimated certified distributions that are attributable to the additional rate authorized under section 30 of this chapter, the additional rate authorized under section 31 of this chapter, the additional rate authorized under section 32 of this chapter, and any other additional rates authorized under this chapter.

SOURCE: IC 6-3.5-6-17.3; (11)PD4580.59. -->     SECTION 91. IC 6-3.5-6-17.3, AS AMENDED BY P.L.182-2009(ss), SECTION 221, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17.3. (a) If the budget agency determines that a sufficient the balance exists in a county account in excess of the amount necessary, when added to other money that will be deposited in the account after the date of the determination, to make exceeds one hundred fifty percent (150%) of the certified distributions to be made to the county in the ensuing year, the budget agency shall make a supplemental distribution to a the county from the county's special account.
    (b) A supplemental distribution described in subsection (a) must be:
        (1) made in January of the ensuing calendar year; and
        (2) allocated in the same manner as certified distributions for deposit in a civil unit's rainy day fund

established under IC 36-1-8-5.1. However, the part of a supplemental distribution that is attributable to an additional rate authorized under this chapter:
            (A) shall be used for the purpose specified in the statute authorizing the additional rate; and
            (B) is not required to be deposited in the unit's rainy day fund.

The amount of the supplemental distribution is equal to the amount by which the balance in the county account exceeds one hundred fifty percent (150%) of the certified distributions to be made to the county in the ensuing year.
    (c) A determination under this section must be made before October 2.

SOURCE: IC 6-3.5-7-11; (11)PD4580.60. -->     SECTION 92. IC 6-3.5-7-11, AS AMENDED BY P.L.113-2010, SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. (a) Revenue derived from the imposition of the county economic development income tax shall, in the manner prescribed by this section, be distributed to the county that imposed it.
    (b) Before August 2 of each calendar year, the budget agency, shall certify to the county auditor of each adopting county the sum of the amount of county economic development income tax revenue that the budget agency determines has been:
        (1) received from that county for a taxable year ending before the calendar year in which the determination is made; and
        (2) reported on an annual return or amended return processed by the department in the state fiscal year ending before July 1 of the calendar year in which the determination is made;
as adjusted for refunds of county economic development income tax made in the state fiscal year plus the amount of interest in the county's account that has been accrued and has not been included in a certification made in a preceding year. The amount certified is the county's certified distribution, which shall be distributed on the dates specified in section 16 of this chapter for the following calendar year.
    (c) The amount certified under subsection (b) shall be adjusted under subsections (d), (e), (f), (g), and (h). The budget agency shall provide the county council with an informative summary of the calculations used to determine the certified distribution. The summary of calculations must include:
        (1) the amount reported on individual income tax returns processed by the department during the previous fiscal year;
        (2) adjustments for over distributions in prior years;
        (3) adjustments for clerical or mathematical errors in prior years;
        (4) adjustments for tax rate changes; and
        (5) the amount of excess account balances to be distributed under IC 6-3.5-7-17.3.
    (d) The budget agency shall certify an amount less than the amount determined under subsection (b) if the budget agency determines that the reduced distribution is necessary to offset overpayments made in a calendar year before the calendar year of the distribution. The budget agency may reduce the amount of the certified distribution over several calendar years so that any overpayments are offset over several years rather than in one (1) lump sum.
    (e) The budget agency shall adjust the certified distribution of a county to correct for any clerical or mathematical errors made in any previous certification under this section. The budget agency may reduce the amount of the certified distribution over several calendar years so that any adjustment under this subsection is offset over several years rather than in one (1) lump sum.
    (f) The budget agency shall adjust the certified distribution of a county to provide the county with the distribution required under section 16(b) of this chapter.
    (g) The budget agency shall adjust the certified distribution of a county to provide the county with the amount of any tax increase imposed under section 25 or 26 of this chapter to provide additional homestead

credits as provided in those provisions.
    (h) This subsection applies to a county that imposes, increases, decreases, or rescinds a tax or tax rate under this chapter before November 1 in the same calendar year in which the budget agency makes a certification under this section. The budget agency shall adjust the certified distribution of a county to provide for a distribution in the immediately following calendar year and in each calendar year thereafter. The budget agency shall provide for a full transition to certification of distributions as provided in subsection (b)(1) through (b)(2) in the manner provided in subsection (d). If the county imposes, increases, decreases, or rescinds a tax or tax rate under this chapter after the date for which a certification under subsection (b) is based, the budget agency shall adjust the certified distribution of the county after August 1 of the calendar year. The adjustment shall reflect any other adjustment authorized under subsections (c), (d), (e), (f), and (g). The adjusted certification shall be treated as the county's certified distribution for the immediately succeeding calendar year. The budget agency shall certify the adjusted certified distribution to the county auditor for the county and provide the county council with an informative summary of the calculations that revises the informative summary provided in subsection (c) and reflects the changes made in the adjustment.
     (i) The budget agency shall before May 1 of every odd-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following two (2) calendar years.
    (j) The budget agency shall before May 1 of every even-numbered year publish an estimate of the statewide total amount of certified distributions to be made under this chapter during the following calendar year.
    (k) The estimates under subsections (i) and (j) must specify the amount of the estimated certified distributions that are attributable to any additional rates authorized under this chapter.

SOURCE: IC 6-3.5-7-17.3; (11)PD4580.61. -->     SECTION 93. IC 6-3.5-7-17.3, AS AMENDED BY P.L.182-2009(ss), SECTION 230, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17.3. (a) If the budget agency determines that a sufficient the balance exists in a county account in excess of the amount necessary, when added to other money that will be deposited in the account after the date of the determination, to make exceeds one hundred fifty percent (150%) of the certified distributions to be made to the county in the ensuing year, the budget agency shall make a supplemental distribution to a the county from the county's special account.
    (b) A supplemental distribution described in subsection (a) must be:
        (1) made in January of the ensuing calendar year; and
        (2) allocated in the same manner as certified distributions for deposit in a civil unit's rainy day fund established under IC 36-1-8-5.1. However, the part of a supplemental distribution that is attributable to an additional rate authorized under this chapter:
            (A) shall be used for the purpose specified in the statute authorizing the additional rate; and
            (B) is not required to be deposited in the unit's rainy day fund.

The amount of the supplemental distribution is equal to the amount by which the balance in the county account exceeds one hundred fifty percent (150%) of the certified distributions to be made to the county in the ensuing year.
    (c) A determination under this section must be made before October 2.
SOURCE: IC 6-5.5-1-2; (11)PD4580.62. -->     SECTION 94. IC 6-5.5-1-2, AS AMENDED BY P.L.182-2009(ss), SECTION 233, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 2. (a) Except as provided in subsections (b) through (d), "adjusted gross income" means taxable income as defined in Section 63 of the Internal Revenue Code, adjusted as follows:
        (1) Add the following amounts:
            (A) An amount equal to a deduction allowed or allowable under Section 166, Section 585, or Section 593 of the Internal Revenue Code.
            (B) An amount equal to a deduction allowed or allowable under Section 170 of the Internal Revenue Code.
            (C) An amount equal to a deduction or deductions allowed or allowable under Section 63 of the Internal Revenue Code for taxes based on or measured by income and levied at the state level by a state of the United States or levied at the local level by any subdivision of a state of the United States.
            (D) The amount of interest excluded under Section 103 of the Internal Revenue Code or under any other federal law, minus the associated expenses disallowed in the computation of taxable income under Section 265 of the Internal Revenue Code.
            (E) An amount equal to the deduction allowed under Section 172 or 1212 of the Internal Revenue Code for net operating losses or net capital losses.
            (F) For a taxpayer that is not a large bank (as defined in Section 585(c)(2) of the Internal Revenue Code), an amount equal to the recovery of a debt, or part of a debt, that becomes worthless to the extent a deduction was allowed from gross income in a prior taxable year under Section 166(a) of the Internal Revenue Code.
            (G) Add the amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation to the property in the year that it was placed in service.
            (H) Add the amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
            (I) Add an amount equal to the amount that a taxpayer claimed as a deduction for domestic production activities for the taxable year under Section 199 of the Internal Revenue Code for federal income tax purposes.
            (J) Add an amount equal to any income not included in gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code. Subtract from the adjusted gross income of any taxpayer that added an amount to adjusted gross income in a previous year the amount necessary to offset the amount included in federal gross income as a result of the deferral of income arising from business indebtedness discharged in connection with the reacquisition after December 31, 2008, and before January 1, 2011, of an applicable debt instrument, as provided in Section 108(i) of the Internal Revenue Code.
            (K) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified restaurant property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(v) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
            (L) Add the amount necessary to make the adjusted gross income of any taxpayer that placed qualified retail improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(ix) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed in service.
            (M) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that claimed the special allowance for qualified disaster assistance property under Section 168(n) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the special allowance not been claimed for the property.
            (N) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 179C of the Internal Revenue Code to expense costs for qualified refinery property equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
            (O) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that made an election under Section 181 of the Internal Revenue Code to expense costs for a qualified film or television production equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year.
            (P) Add or subtract the amount necessary to make the adjusted gross income of any taxpayer that treated a loss from the sale or exchange of preferred stock in:
                (i) the Federal National Mortgage Association, established under the Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.); or
                (ii) the Federal Home Loan Mortgage Corporation, established under the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.);
            as an ordinary loss under Section 301 of the Emergency Economic Stabilization Act of 2008 in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had the loss not been treated as an ordinary loss.
            (Q) Add an amount equal to any exempt insurance income under Section 953(e) of the Internal Revenue Code for active financing income under Subpart F, Subtitle A, Chapter 1, Subchapter N of the Internal Revenue Code.
             (R) Add the amount necessary to make the adjusted gross income of any taxpayer that placed any qualified leasehold improvement property in service during the taxable year and that was classified as 15-year property under Section 168(e)(3)(E)(iv) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
            (S) Add the amount deducted from gross income under Section 198 of the Internal Revenue Code for the expensing of environmental remediation costs.
            (T) Add the amount deducted from gross income under Section 179E of the Internal Revenue Code for any qualified advanced mine safety equipment property.
            (U) Add the amount necessary to make the adjusted gross income of any taxpayer that placed a motorsports entertainment complex in service during the taxable year and that was classified as 7-year property under Section 168(e)(3)(C)(ii) of the Internal Revenue Code equal to the amount of adjusted gross income that would have been computed had the classification not applied to the property in the year that it was placed into service.
            (V) Add the amount deducted under Section 195 of the Internal Revenue Code for start-up expenditures that exceeds the amount the taxpayer could deduct under Section 195 of the

Internal Revenue Code before it was amended by the Small Business Jobs Act of 2010 (P.L. 111-240).
            (W) Add the amount necessary to make the adjusted gross income of any taxpayer for which tax was not imposed on the net recognized built-in gain of an S corporation under Section 1374(d)(7) of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240) equal to the amount of adjusted gross income that would have been computed before Section 1374(d)(7) of the Internal Revenue Code as amended by the Small Business Jobs Act of 2010 (P.L. 111-240).

        (2) Subtract the following amounts:
            (A) Income that the United States Constitution or any statute of the United States prohibits from being used to measure the tax imposed by this chapter.
            (B) Income that is derived from sources outside the United States, as defined by the Internal Revenue Code.
            (C) An amount equal to a debt or part of a debt that becomes worthless, as permitted under Section 166(a) of the Internal Revenue Code.
            (D) An amount equal to any bad debt reserves that are included in federal income because of accounting method changes required by Section 585(c)(3)(A) or Section 593 of the Internal Revenue Code.
            (E) The amount necessary to make the adjusted gross income of any taxpayer that owns property for which bonus depreciation was allowed in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made under Section 168(k) of the Internal Revenue Code to apply bonus depreciation.
            (F) The amount necessary to make the adjusted gross income of any taxpayer that placed Section 179 property (as defined in Section 179 of the Internal Revenue Code) in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election for federal income tax purposes not been made for the year in which the property was placed in service to take deductions under Section 179 of the Internal Revenue Code in a total amount exceeding twenty-five thousand dollars ($25,000).
            (G) Income that is:
                (i) exempt from taxation under IC 6-3-2-21.7; and
                (ii) included in the taxpayer's taxable income under the Internal Revenue Code.
    (b) In the case of a credit union, "adjusted gross income" for a taxable year means the total transfers to undivided earnings minus dividends for that taxable year after statutory reserves are set aside under IC 28-7-1-24.
    (c) In the case of an investment company, "adjusted gross income" means the company's federal taxable income multiplied by the quotient of:
        (1) the aggregate of the gross payments collected by the company during the taxable year from old and new business upon investment contracts issued by the company and held by residents of Indiana; divided by
        (2) the total amount of gross payments collected during the taxable year by the company from the business upon investment contracts issued by the company and held by persons residing within Indiana and elsewhere.
    (d) As used in subsection (c), "investment company" means a person, copartnership, association, limited liability company, or corporation, whether domestic or foreign, that:
        (1) is registered under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.); and


        (2) solicits or receives a payment to be made to itself and issues in exchange for the payment:
            (A) a so-called bond;
            (B) a share;
            (C) a coupon;
            (D) a certificate of membership;
            (E) an agreement;
            (F) a pretended agreement; or
            (G) other evidences of obligation;
        entitling the holder to anything of value at some future date, if the gross payments received by the company during the taxable year on outstanding investment contracts, plus interest and dividends earned on those contracts (by prorating the interest and dividends earned on investment contracts by the same proportion that certificate reserves (as defined by the Investment Company Act of 1940) is to the company's total assets) is at least fifty percent (50%) of the company's gross payments upon investment contracts plus gross income from all other sources except dividends from subsidiaries for the taxable year. The term "investment contract" means an instrument listed in clauses (A) through (G).
SOURCE: IC 6-7-1-28.1; (11)PD4580.63. -->     SECTION 95. IC 6-7-1-28.1, AS AMENDED BY P.L.182-2009(ss), SECTION 246, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 28.1. The taxes, registration fees, fines, or penalties collected under this chapter shall be deposited in the following manner:
        (1) Four and twenty-two hundredths percent (4.22%) of the money shall be deposited in a fund to be known as the cigarette tax fund.
        (2) Six-tenths percent (0.6%) of the money shall be deposited in a fund to be known as the mental health centers fund.
        (3) Fifty-four and five-tenths percent (54.5%) The following amount of the money shall be deposited in the state general fund:
             (A) After June 30, 2011, and before July 1, 2013, sixty and twenty-four hundredths percent (60.24%).
            (B) After June 30, 2013, fifty-four and five-tenths percent (54.5%).

        (4) Five and forty-three hundredths percent (5.43%) of the money shall be deposited into the pension relief fund established in IC 5-10.3-11.
        (5) Twenty-seven and five hundredths percent (27.05%) of the money shall be deposited in the Indiana check-up plan trust fund established by IC 12-15-44.2-17.
        (6) Two and forty-six hundredths percent (2.46%) of the money shall be deposited in the state general fund for the purpose of paying appropriations for Medicaid_Current Obligations, for provider reimbursements.
        (7) Five and seventy-four hundredths percent (5.74%) The following amount of the money shall be deposited in the state retiree health benefit trust fund established by IC 5-10-8-8.5 as follows:
             (A) Before July 1, 2011, five and seventy-four hundredths percent (5.74%).
            (B) After June 30, 2011, and before July 1, 2013, zero percent (0%).
            (C) After June 30, 2013, five and seventy-four hundredths percent (5.74%).

The money in the cigarette tax fund, the mental health centers fund, the Indiana check-up plan trust fund, or the pension relief fund at the end of a fiscal year does not revert to the state general fund. However, if in any fiscal year, the amount allocated to a fund under subdivision (1) or (2) is less than the amount received in fiscal year 1977, then that fund shall be credited with the difference between the amount allocated and the amount received in fiscal year 1977, and the allocation for the fiscal year to the fund

under subdivision (3) shall be reduced by the amount of that difference. Money deposited under subdivisions (6) through (7) may not be used for any purpose other than the purpose stated in the subdivision.

SOURCE: IC 6-9-7-7; (11)PD4580.64. -->     SECTION 96. IC 6-9-7-7, AS AMENDED BY P.L.1-2009, SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) The county treasurer shall establish an innkeeper's tax fund. The treasurer shall deposit in that fund all money received under section 6 of this chapter that is attributable to an innkeeper's tax rate that is not more than five percent (5%).
    (b) Money in the innkeeper's tax fund shall be distributed as follows:
        (1) Thirty percent (30%) shall be distributed as follows:
            (A) Before July 1, 2015, and after June 30, 2017,
to the department of natural resources for the development of projects in the state park on the county's largest river, including its tributaries.
            (B) For the period July 1, 2015, through June 30, 2017, to the treasurer of state for deposit in the state general fund.
        (2) Forty percent (40%) shall be distributed to the commission to carry out its purposes, including making any distributions or payments to the Lafayette - West Lafayette Convention and Visitors Bureau, Inc.
        (3) Ten percent (10%) shall be distributed to a community development corporation that serves a metropolitan area in the county that includes:
            (A) a city having a population of more than fifty-five thousand (55,000) but less than fifty-nine thousand (59,000); and
            (B) a city having a population of more than twenty-eight thousand seven hundred (28,700) but less than twenty-nine thousand (29,000);
        for the community development corporation's use in tourism, recreation, and economic development activities.
        (4) Ten percent (10%) shall be distributed to Historic Prophetstown to be used by Historic Prophetstown for carrying out its purposes.
        (5) Ten percent (10%) shall be distributed to the Wabash River Enhancement Corporation to assist the Wabash River Enhancement Corporation in carrying out its purposes. Money distributed under this subdivision may not be used to pay any:
            (A) employee salaries; or
            (B) other ongoing administrative or operating costs;
        of the Wabash River Enhancement Corporation.
    (c) An advisory commission consisting of the following members is established:
        (1) The director of the department of natural resources or the director's designee.
        (2) The public finance director or the public finance director's designee.
        (3) A member appointed by the Native American Indian affairs commission.
        (4) A member appointed by Historic Prophetstown.
        (5) A member appointed by the community development corporation described in subsection (b)(3).
        (6) A member appointed by the Wabash River Enhancement Corporation.
        (7) A member appointed by the commission.
        (8) A member appointed by the county fiscal body.
        (9) A member appointed by the town board of the town of Battleground.
        (10) A member appointed by the mayor of the city of Lafayette.
        (11) A member appointed by the mayor of the city of West Lafayette.
    (d) The following apply to the advisory commission:
        (1) The governor shall appoint a member of the advisory commission as chairman of the advisory commission.
        (2) Six (6) members of the advisory commission constitute a quorum. The affirmative votes of at least six (6) advisory commission members are necessary for the advisory commission to take official action other than to adjourn or to meet to hear reports or testimony.
        (3) The advisory commission shall make recommendations concerning the use of any proceeds of bonds issued to finance the development of Prophetstown State Park.
        (4) Members of the advisory commission who are state employees:
            (A) are not entitled to any salary per diem; and
            (B) are entitled to reimbursement for traveling expenses as provided under IC 4-13-1-4 and to reimbursement for other expenses actually incurred in connection with the member's duties as provided in the state policies and procedures established by the Indiana department of administration and approved by the budget agency.
    (e) The Indiana finance authority, in its capacity as the recreational development commission, may issue bonds for the development of Prophetstown State Park under IC 14-14-1.
SOURCE: IC 6-9-33-3; (11)PD4580.65. -->     SECTION 97. IC 6-9-33-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) After January 1 but before June 1, the fiscal body of a county may adopt an ordinance to impose an excise tax, known as the county supplemental food and beverage tax, on those transactions described in section 4 of this chapter.
    (b) If a fiscal body adopts an ordinance under subsection (a), it shall immediately send a certified copy of the ordinance to the commissioner of the department of state revenue.
    (c) If a fiscal body adopts an ordinance under subsection (a), the county supplemental food and beverage tax applies to transactions that occur after June 30 of the year in which the ordinance is adopted. Any legal challenges to the imposition of the tax, including any effort to force the revocation or repeal of the tax, must be filed within ninety (90) days after the adoption of the tax by the fiscal body of a county. Pending the time for a legal challenge to the tax, and during the course of any legal challenge to the tax, the tax shall not apply to any covered transaction.
    (d) The tax terminates two (2) years after the later of the following:
         (1) The retirement of debt that was incurred under this chapter.
        (2) The retirement of debt that was incurred by the capital improvement board of managers under IC 36-10-8-6 and IC 36-10-8-7.
SOURCE: IC 6-9-33-8; (11)PD4580.66. -->     SECTION 98. IC 6-9-33-8, AS AMENDED BY P.L.176-2009, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. (a) If a tax is imposed under section 3 of this chapter, the county treasurer shall establish a supplemental coliseum improvement fund. The county treasurer shall deposit in this fund all amounts received from the tax imposed under this chapter. Money in this fund:
        (1) may be appropriated only to retire or advance refund bonds issued, loans obtained, or lease payments incurred under IC 36-1-10 (referred to in this chapter as "obligations") to remodel, expand, improve, or acquire an athletic and exhibition coliseum in existence before the effective date of an ordinance adopted under section 3 of this chapter; and
        (2) shall be used to make transfers required by subsection (b).
    (b) There is established a food and beverage tax reserve account to be administered by the capital improvement board of managers (IC 36-10-8). The money that is deposited in the supplemental coliseum improvement fund after December 31, 2009, and is not needed in a year to make payments on obligations for which a pledge of revenue under this chapter was made before January 1, 2009, shall be transferred to

the capital improvement board. The county treasurer shall make the transfer before February 1 of the following year. The capital improvement board shall deposit the money it receives in the board's food and beverage tax reserve account. Money in the reserve account may not be withdrawn or transferred during the year it is received except to make transfers back to the county to make payments on obligations for which a pledge of revenue under this chapter was made before January 1, 2009. However, the capital improvement board may transfer:
        (1) interest earned on money in the reserve account; and
        (2) an amount equal to the balance that has been held in the reserve account for at least twelve (12) months;
to the board's capital improvement fund established by IC 36-10-8-12.
     (c) Excess revenue transferred under subsection (b) to the capital improvement board of managers may be used to provide funding for:
        (1) the construction of a capital improvement (as defined in IC 36-10-1-4);
        (2) an economic development project as described in:
            (A) IC 6-3.5-7-13.1(c)(1) or IC 6-3.5-7-13.1(c)(2)(A) through IC 6-3.5-7-13.1(c)(2)(I); and
            (B) IC 6-3.5-7-13.1(c)(2)(K); or
        (3) financing a capital improvement or an economic development project described in subdivision (1) or (2).
In carrying out this subsection, the capital improvement board may borrow against future tax revenue that will be collected under this chapter. In addition, the capital improvement board may use an amount not to exceed one hundred thousand dollars ($100,000) annually from the tax revenue collected under this chapter to pay expenses related to investigating a potential capital improvement or economic development project, including feasibility and preliminary engineering studies related to such a capital improvement or economic development project.

    (c) (d) Excess revenue transferred under subsection (b) to the capital improvement board of managers may not be used to:
        (1) provide funding for improvements initiated before January 1, 2009, that are located in the area bounded on the north by Jefferson Boulevard, on the east by Harrison Street, on the south by Breckenridge Street, and on the west by Ewing Street as those public ways were located on January 1 2009, as part of the Harrison Square project;
         (2) provide for debt service or lease payments for a project for which the obligations for the project were incurred before January 1, 2009; or
        (2) (3) pay operational expenses for any facilities of the municipality.

SOURCE: IC 7.1-3-20-11.5; (11)PD4580.67. -->     SECTION 99. IC 7.1-3-20-11.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11.5. (a) The commission may issue a three-way permit for the sale of alcoholic beverages, for on-the-licensed-premises consumption only, to the proprietor of a restaurant which is located in a city or town that has a population of less than twenty thousand (20,000), twenty-five thousand (25,000), if the applicant meets the following requirements:
        (1) The establishment is the holder of a one-way or a two-way permit.
        (2) The establishment is qualified to hold a three-way permit but for the provisions of IC 7.1-3-22-3.
    (b) A permit that is issued under this section may be transferred.
    (c) The annual license fee for a three-way retailer's permit issued under this section is the same as the fee for a three-way retailer's permit issued under other provisions of this chapter. A person who holds a three-way retailer's permit under this section is not required to pay an annual license fee for any one-way or two-way retailer's permit that the person must hold to maintain eligibility for a three-way retailer's

permit under this section.

SOURCE: IC 8-10-5-8; (11)PD4580.68. -->     SECTION 100. IC 8-10-5-8, AS AMENDED BY P.L.49-2010, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. (a) A port authority is an instrumentality of the state and shall have full power and authority independent of any political subdivision to do the following:
        (1) Purchase, construct, sell, lease, and operate docks, wharves, warehouses, piers, and other port, terminal, or transportation facilities within its jurisdiction consistent with the purposes of the port authority and make charges for the use thereof.
        (2) Straighten, deepen, and improve any canal, channel, river, stream, or other water course or way which may be necessary or proper in the development of the facilities of such port.
        (3) Establish dock lines, piers, and other facilities necessary to the conduct of pleasure boating within the territory under the jurisdiction of the port authority.
        (4) Regulate and enforce the regulation of all uses and activities related to the port in the area under the jurisdiction of the port authority and determine the use of land adjacent to waters under the jurisdiction of the port authority within a reasonable distance from the shore lines of such waters. However, this subdivision does not:
            (A) affect the requirement that special standards for the safe operation of watercraft on public waters must be adopted by rule by the department of natural resources under IC 14-15-7-3; or
            (B) authorize the assessment by the port authority of a charge or fee for the passage of a watercraft through the navigable waters of the state.
        (5) Acquire, own, hold, sell, lease, or operate real or personal property for the authorized purposes of the port authority.
        (6) Apply to the proper authorities of the United States pursuant to appropriate law for the right to establish, operate, and maintain foreign trade zones within the limits of the port authority and establish, operate, and maintain such foreign trade zones.
        (7) Exercise the right of eminent domain to appropriate any land, rights, rights-of-way, franchises, easements, or other property necessary or proper for the construction or the efficient operation of any facility of the port authority, award damages to landowners for real estate and property rights appropriated and taken or injuriously affected, and in case the board of directors of the port authority cannot agree with the owners, lessees, or occupants of any real estate selected by them for the purposes herein set forth, proceed to procure the condemnation of the same as hereinafter provided, and in addition thereto, when not in conflict or inconsistent with the express provisions of this chapter, proceed under the general laws of the state of Indiana governing the condemnation of lands and the rights-of-way for other public purposes which may be in force at the time, and the provisions of such laws are hereby extended to ports and harbors and to the properties of port authorities as provided for herein so far as the same are not in conflict or inconsistent with the terms of this chapter. In any such proceeding prosecuted by the board of directors of a port authority to condemn or appropriate any land or the use thereof or any right therein for purposes permitted by this chapter, the board and all owners and holders of property or rights therein sought to be taken shall be governed by and have the same rights as to procedure, notices, hearings, assessments of benefits and awards, and payments thereof as are now or may hereafter be prescribed by law for the appropriation and condemnation of real estate, and such property owners shall have like powers and rights as to remonstrance and of appeals to the circuit or superior courts in the county in which such property sought to be appropriated is located. However, the payment of all damages awarded for all lands and property or interests or rights therein appropriated under the provisions of this chapter shall be paid entirely out of funds under the control of such port authority, except for the following:
            (A) Upon written application of any property owner affected, any municipal corporation, or, as to areas outside the boundaries of a municipal corporation, any county, participating in the creation of a port authority, after ten (10) days written notice to the port authority and public hearing had thereon, may revoke the right of eminent domain to be exercised by the port authority as to any parcel or parcels of land inside its borders within sixty (60) days after the port authority has by resolution announced the lands, rights, rights-of-way, franchises, easements, or other property to be taken.
            (B) Nothing herein contained shall authorize a port authority to take or disturb property or facilities belonging to any public corporation, public utility, or common carrier, which property or facilities are necessary and convenient in the operation of such public corporation, public utility, or common carrier, unless provision is made for the restoration, relocating, or duplication of such property or facilities, or upon the election of such public corporation, public utility, or common carrier, for the payment of compensation, if any at the sole cost of the port authority, subject to the following:
                (i) If any restoration or duplication proposed to be made hereunder shall involve a relocation of such property or facilities, the new facilities and location shall be of at least comparable utilitarian value and effectiveness and such relocation shall not impair the ability of the public utility or common carrier to compete in its original area of operation.
                (ii) Provisions for restoration or duplication shall be described in detail in the resolution for appropriation passed by the port authority.
        (8) Accept, receive, and receipt for federal moneys, and other moneys, either public or private, for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of a port or harbor or other navigation facilities, and sites therefor and comply with the provisions of the laws of the United States and any rules and regulations made thereunder for the expenditure of federal moneys upon such ports and other navigation facilities.
        (9) Maintain such funds as it deems necessary.
        (10) Direct its agents or employees, when properly identified in writing, and after at least five (5) days written notice, to enter upon lands within the confines of its jurisdiction in order to make surveys and examinations preliminary to location and construction of works for the purposes of the port authority, without liability of the port authority or its agents or employees except for actual damage done.
        (11) Sell or lease real and personal property not needed for the operation of the port authority and grant easements or rights-of-way over property of the port authority.
        (12) Promote, advertise, and publicize the port and its facilities, provide traffic information and rate information to shippers and shipping interests, and appear before rate making authorities to represent and promote the interests of the port.
        (13) Borrow money and secure the borrowing by a pledge of the following:
            (A) Accounts receivable.
            (B) A security interest in capital equipment for which the proceeds of the loan are used.
            (C) Other security, including the excess of unobligated revenues over operating expenses.
    (b) The term of a loan authorized by subsection (a)(13) may not exceed:
         (1) thirty-five (35) years, in the case of a loan made before July 1, 2011; or
        (2) twenty-five (25) years, in the case of a loan made after June 30, 2011.

SOURCE: IC 8-10-5-8.7; (11)PD4580.69. -->     SECTION 101. IC 8-10-5-8.7, AS ADDED BY P.L.49-2010, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8.7. (a) The board of directors may, by resolution, recommend to the governing body of the municipality or municipalities creating the port authority that they

authorize general obligations, mortgage, or revenue bonds for any one (1) or more of the following purposes:
        (1) To acquire or improve port or harbor sites.
        (2) To acquire, construct, extend, alter, or improve structures, ways, facilities, or equipment necessary for the proper operation of the port authority or the port or harbor within its jurisdiction.
        (3) To refund outstanding bonds and matured interest coupons and issue and sell refunding bonds for that purpose.
    (b) Before making a recommendation authorized by subsection (a), the board shall give notice of a public hearing at which time the board shall disclose the purpose for which the bond issue is proposed, the amount of the proposed issue, and all other pertinent data. At least ten (10) days before the date set for hearing, the board shall publish in two (2) newspapers of general circulation in the city, county, counties, or other municipalities involved, a notice of the date, time, place, and purpose of the hearing. If there is only one (1) newspaper, one (1) notice is sufficient.
    (c) The governing body shall review the proposal of the board of directors of the port authority and if it approves shall provide for the advertisement and sale of the issue in compliance with IC 5-1-11. For purposes of this chapter, IC 5-1-11 applies as fully to mortgage bonds as to general obligation or revenue bonds.
    (d) Bonds issued under the authority of this chapter are not subject to limitations on interest rates.
    (e) The governing body shall fix the date, time, and place of payment of principal and interest, but no issue may have a maturity date later than:
         (1) forty (40) years after date of issue, in the case of bonds issued before July 1, 2011; or
        (2) twenty-five (25) years after date of issue, in the case of bonds issued after June 30, 2011.

    (f) Bonds issued under this chapter, together with the interest thereon, are tax exempt.
    (g) The governing body shall apply the proceeds from the sale of bonds exclusively to the purposes for which the bonds were issued and only to the extent necessary therefor. Any remaining balance shall be placed in a sinking fund for the payment of the bonds and the interest on the bonds.
    (h) This chapter does not affect obligations existing before July 1, 2010, on outstanding bonds. If a board of directors or a port authority is discontinued, as provided in section 4 of this chapter, the primary obligations on its bonds remain unaffected. In addition, the city or county or municipalities involved in the issuance of bonds shall assume liability for the payment of the bonds according to their terms and in relation to their interest or proportion in the bonds.

SOURCE: IC 11-10-3-6; (11)PD4580.70. -->     SECTION 102. IC 11-10-3-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) This section:
        (1) does not apply in the case of a person who is subject to lawful detention by a county sheriff and is:
            (A) covered under private health coverage for health care services; or
            (B) willing to pay for the person's own health care services; and
        (2) does not affect copayments required under section 5 of this chapter.
    (b) The following definitions apply throughout this section:
        (1) "Charge description master" means a listing of the amount charged by a hospital for each service, item, and procedure:
            (A) provided by the hospital; and
            (B) for which a separate charge exists.
        (2) "Health care service" means the following:
            (A) Medical care.
            (B) Dental care.
            (C) Eye care.
            (D) Any other health care related service.
        The term includes health care items and procedures.
    (c) Except as provided in subsection (d), when the department or a county is responsible for payment for health care services provided to a person who is committed to the department, the department shall reimburse:
        (1) a physician licensed under IC 25-22.5;
        (2) a hospital licensed under IC 16-21-2; or
        (3) another health care provider;
for the cost of a health care service at the federal Medicare reimbursement rate for the health care service provided plus four percent (4%).
    (d) If there is no federal Medicare reimbursement rate for a health care service described in subsection (c), the department shall do the following:
        (1) If the health care service is provided by a hospital, the department shall reimburse the hospital an amount equal to sixty-five percent (65%) of the amount charged by the hospital according to the hospital's charge description master.
        (2) If the health care service is provided by a physician or another health care provider, the department shall reimburse the physician or health care provider an amount equal to sixty-five percent (65%) of the amount charged by the physician or health care provider.
    (e) This section expires July 1, 2013.

SOURCE: IC 11-10-5-6; (11)PD4580.71. -->     SECTION 103. IC 11-10-5-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. The department may provide financial assistance for tuition, books, and supplies for an offender who:
        (1) is:
            (A) convicted of a felony;
            (B) sentenced to a term of imprisonment for that felony; and
            (C) confined for that felony by the department; and
        (2) enrolls in a degree program at an eligible institution (as defined in IC 21-12-1-8(2)) of higher education.

SOURCE: IC 11-13-3-4; (11)PD4580.72. -->     SECTION 104. IC 11-13-3-4, AS AMENDED BY P.L.111-2009, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) A condition to remaining on parole is that the parolee not commit a crime during the period of parole.
    (b) The parole board may also adopt, under IC 4-22-2, additional conditions to remaining on parole and require a parolee to satisfy one (1) or more of these conditions. These conditions must be reasonably related to the parolee's successful reintegration into the community and not unduly restrictive of a fundamental right.
    (c) If a person is released on parole, the parolee shall be given a written statement of the conditions of parole. Signed copies of this statement shall be:
        (1) retained by the parolee;
        (2) forwarded to any person charged with the parolee's supervision; and
        (3) placed in the parolee's master file.
    (d) The parole board may modify parole conditions if the parolee receives notice of that action and had ten (10) days after receipt of the notice to express the parolee's views on the proposed modification. This subsection does not apply to modification of parole conditions after a revocation proceeding under section

10 of this chapter.
    (e) As a condition of parole, the parole board may require the parolee to reside in a particular parole area. In determining a parolee's residence requirement, the parole board shall:
        (1) consider:
            (A) the residence of the parolee prior to the parolee's incarceration; and
            (B) the parolee's place of employment; and
        (2) assign the parolee to reside in the county where the parolee resided prior to the parolee's incarceration unless assignment on this basis would be detrimental to the parolee's successful reintegration into the community.
    (f) As a condition of parole, the parole board may require the parolee to:
        (1) periodically undergo a laboratory chemical test (as defined in IC 14-15-8-1) or series of tests to detect and confirm the presence of a controlled substance (as defined in IC 35-48-1-9); and
        (2) have the results of any test under this subsection reported to the parole board by the laboratory.
The parolee is responsible for any charges resulting from a test required under this subsection. However, a person's parole may not be revoked on the basis of the person's inability to pay for a test under this subsection.
    (g) As a condition of parole, the parole board:
        (1) may require a parolee who is a sex offender (as defined in IC 11-8-8-4.5) to:
            (A) participate in a treatment program for sex offenders approved by the parole board; and
            (B) avoid contact with any person who is less than sixteen (16) years of age unless the parolee:
                (i) receives the parole board's approval; or
                (ii) successfully completes the treatment program referred to in clause (A); and
        (2) shall:
            (A) require a parolee who is a sex or violent offender (as defined in IC 11-8-8-5) to register with a local law enforcement authority under IC 11-8-8;
            (B) prohibit a parolee who is a sex offender from residing within one thousand (1,000) feet of school property (as defined in IC 35-41-1-24.7) for the period of parole, unless the sex offender obtains written approval from the parole board;
            (C) prohibit a parolee who is a sex offender convicted of a sex offense (as defined in IC 35-38-2-2.5) from residing within one (1) mile of the victim of the sex offender's sex offense unless the sex offender obtains a waiver under IC 35-38-2-2.5;
            (D) prohibit a parolee who is a sex offender from owning, operating, managing, being employed by, or volunteering at any attraction designed to be primarily enjoyed by children less than sixteen (16) years of age;
            (E) require a parolee who is a sex offender to consent:
                (i) to the search of the sex offender's personal computer at any time; and
                (ii) to the installation on the sex offender's personal computer or device with Internet capability, at the sex offender's expense, of one (1) or more hardware or software systems to monitor Internet usage; and
            (F) prohibit the sex offender from:
                (i) accessing or using certain web sites, chat rooms, or instant messaging programs frequented by children; and
                (ii) deleting, erasing, or tampering with information on the sex offender's personal computer with intent to conceal an activity prohibited by item (i).
The parole board may not grant a sexually violent predator (as defined in IC 35-38-1-7.5) or a sex offender

who is an offender against children under IC 35-42-4-11 a waiver under subdivision (2)(B) or (2)(C). If the parole board allows the sex offender to reside within one thousand (1,000) feet of school property under subdivision (2)(B), the parole board shall notify each school within one thousand (1,000) feet of the sex offender's residence of the order.
    (h) The address of the victim of a parolee who is a sex offender convicted of a sex offense (as defined in IC 35-38-2-2.5) is confidential, even if the sex offender obtains a waiver under IC 35-38-2-2.5.
    (i) As a condition of parole, the parole board may require a parolee to participate in a reentry court program.
    (j) As a condition of parole, the parole board:
        (1) shall require a parolee who is a sexually violent predator under IC 35-38-1-7.5; and
        (2) may require a parolee who is a sex or violent offender (as defined in IC 11-8-8-5);
to wear a monitoring device (as described in IC 35-38-2.5-3) that can transmit information twenty-four (24) hours each day regarding a person's precise location, subject to the amount appropriated to the department for a monitoring program as a condition of parole.
    (k) As a condition of parole, the parole board may prohibit, in accordance with IC 35-38-2-2.6, a parolee who has been convicted of stalking from residing within one thousand (1,000) feet of the residence of the victim of the stalking for a period that does not exceed five (5) years.
    (l) As a condition of parole, the parole board may prohibit a parolee convicted of an offense under IC 35-46-3 from owning, harboring, or training an animal, and, if the parole board prohibits a parolee convicted of an offense under IC 35-46-3 from having direct or indirect contact with an individual, the parole board may also prohibit the parolee from having direct or indirect contact with any animal belonging to the individual.
    (m) A parolee may be responsible for the reasonable expenses, as determined by the department, of the parolee's participation in a treatment or other program required as a condition of parole under this section. However, a person's parole may not be revoked solely on the basis of the person's inability to pay for a program required as a condition of parole under this section.

SOURCE: IC 12-7-2-35; (11)PD4580.73. -->     SECTION 105. IC 12-7-2-35, AS AMENDED BY P.L.1-2007, SECTION 106, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 35. "Committee" means the following:
        (1) For purposes of IC 12-8-3, the meaning set forth in IC 12-8-3-1.
        (2) (1) For purposes of IC 12-15-33, the meaning set forth in IC 12-15-33-1.
         (2) For purposes of IC 12-17.2-3.3, the meaning set forth in IC 12-17.2-3.3-1.
SOURCE: IC 12-7-2-44; (11)PD4580.74. -->     SECTION 106. IC 12-7-2-44, AS AMENDED BY P.L.130-2009, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 44. "Council" means the following:
        (1) For purposes of IC 12-9-4, the meaning set forth in IC 12-9-4-1.
        (2) For purposes of IC 12-12-8, the meaning set forth in IC 12-12-8-2.5.
        (3) For purposes of IC 12-13-4, the meaning set forth in IC 12-13-4-1.
        (4) For purposes of IC 12-15-41 and IC 12-15-42, the Medicaid work incentives council established by IC 12-15-42-1.
        (5) For purposes of IC 12-12.7-2, the meaning set forth in IC 12-12.7-2-2.
        (6) For purposes of IC 12-21-4, the meaning set forth in IC 12-21-4-1.
        (7) For purposes of IC 12-28-5, the meaning set forth in IC 12-28-5-1.
SOURCE: IC 12-7-2-61; (11)PD4580.75. -->     SECTION 107. IC 12-7-2-61 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 61. (a) Except as provided in subsection (b), "developmental disability" means the following:
        (1) Except as provided in subdivision (2), before July 1, 1993, the term means a severe, chronic disability of an individual that meets all of the following conditions:
        (A) (1) Is attributable to:
            (i) (A) mental retardation, intellectual disability, cerebral palsy, epilepsy, or autism; or
            (ii) (B) any other condition (other than a sole diagnosis of mental illness) found to be closely related to mental retardation, intellectual disability, because this condition results in similar impairment of general intellectual functioning or adaptive behavior or requires similar treatment and or services similar to those required for a person with an intellectual disability. or
                (iii) dyslexia resulting from a disability described in this subdivision;
            (B) originates before the person is eighteen (18) years of age;
            (C) has continued or is expected to continue indefinitely; and
            (D) constitutes a substantial disability to the individual's ability to function normally in society.
        (2) For purposes of IC 12-10-7 and IC 12-28-1 before July 1, 1993, and for purposes of IC 12 after June 30, 1993, the term means a severe, chronic disability of an individual that:
            (A) is attributable to a mental or physical impairment, or a combination of mental and physical impairments (other than a sole diagnosis of mental illness);
        (B) (2) Is manifested before the individual is twenty-two (22) years of age.
        (C) (3) Is likely to continue indefinitely.
            (D) reflects the individual's need for a combination and sequence of special, interdisciplinary, or generic care, treatment, or other services that are of lifelong or extended duration and are individually planned and coordinated; and
        (E) (4) Results in substantial functional limitations in at least three (3) of the following areas of major life activities:
            (i) (A) Self-care.
            (ii) (B) Receptive and expressive Understanding and use of language.
            (iii) (C) Learning.
            (iv) (D) Mobility.
            (v) (E) Self-direction.
            (vi) (F) Capacity for independent living.
            (vii) (G) Economic self-sufficiency.
     (b) The definition in subsection (a) does not apply and may not affect services provided to an individual receiving:
        (1) home and community based Medicaid waiver; or
        (2) ICF/MR;
services through the division on June 30, 2011.

SOURCE: IC 12-7-2-69; (11)PD4580.76. -->     SECTION 108. IC 12-7-2-69, AS AMENDED BY P.L.1-2007, SECTION 108, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 69. (a) "Division", except as provided in subsections (b) and (c), refers to any of the following:
        (1) The division of disability and rehabilitative services established by IC 12-9-1-1.
        (2) The division of aging established by IC 12-9.1-1-1.
        (3) The division of family resources established by IC 12-13-1-1.
        (4) The division of mental health and addiction established by IC 12-21-1-1.
    (b) The term refers to the following:
        (1) For purposes of the following statutes, the division of disability and rehabilitative services established by IC 12-9-1-1:
            (A) IC 12-9.
            (B) IC 12-11.
            (C) IC 12-12.
            (D) IC 12-12.5.
            (E) IC 12-12.7.
             (F) IC 12-28-5.
        (2) For purposes of the following statutes, the division of aging established by IC 12-9.1-1-1:
            (A) IC 12-9.1.
            (B) IC 12-10.
        (3) For purposes of the following statutes, the division of family resources established by IC 12-13-1-1:
            (A) IC 12-13.
            (B) IC 12-14.
            (C) IC 12-15.
            (D) IC 12-16.
            (E) IC 12-17.2.
            (F) IC 12-18.
            (G) IC 12-19.
            (H) IC 12-20.
        (4) For purposes of the following statutes, the division of mental health and addiction established by IC 12-21-1-1:
            (A) IC 12-21.
            (B) IC 12-22.
            (C) IC 12-23.
            (D) IC 12-25.
    (c) With respect to a particular state institution, the term refers to the division whose director has administrative control of and responsibility for the state institution.
    (d) For purposes of IC 12-24, IC 12-26, and IC 12-27, the term refers to the division whose director has administrative control of and responsibility for the appropriate state institution.
SOURCE: IC 12-7-2-119.5; (11)PD4580.77. -->     SECTION 109. IC 12-7-2-119.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 119.5. "Institutional provider", for purposes of IC 12-15-13-4, has the meaning set forth in IC 12-15-13-4(a).
SOURCE: IC 12-7-2-132.2; (11)PD4580.78. -->     SECTION 110. IC 12-7-2-132.2 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 132.2. "Noninstitutional provider", for purposes of IC 12-15-13-3.5, has the meaning set forth in IC 12-15-13-3.5(a).
SOURCE: IC 12-8-1-9; (11)PD4580.79. -->     SECTION 111. IC 12-8-1-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. (a) Consistent with the powers and duties of the secretary under this article, the secretary may adopt rules under IC 4-22-2 relating to the exercise of those powers and duties. However, any rules adopted by the secretary under IC 4-22-2-29 must be approved by the family and social services committee established by IC 12-8-3-2 before submission to the attorney general under IC 4-22-2-31. However, nothing in this section prevents the secretary from presenting a proposed rule to the family and social services committee established by IC 12-8-3-2 for the committee's review and recommendations before the adoption of the rule under IC 4-22-2-29 and approval of the rule by the committee under this section.
     (b) The secretary may adopt emergency rules under IC 4-22-2-37.1(a)(37) for the following:
        (1) Federal Medicaid waiver program provisions.
        (2) Federal programs administered by the office of the secretary.

SOURCE: IC 12-8-1-12; (11)PD4580.80. -->     SECTION 112. IC 12-8-1-12, AS AMENDED BY P.L.161-2007, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) If:
        (1) the sums appropriated by the general assembly in the biennial budget to the family and social services administration for the Medicaid assistance, Medicaid administration, public assistance (TANF), and the IMPACT (JOBS) work program are insufficient to enable the office of the secretary to meet its obligations; and
        (2) the failure to appropriate additional funds would:
            (A) violate a provision of federal law; or
            (B) jeopardize the state's share of federal financial participation applicable to the state appropriations contained in the biennial budget for Medicaid assistance, Medicaid administration, public assistance (TANF), or the IMPACT (JOBS) program;
then there are appropriated further sums as may be necessary to remedy a situation described in this subsection, subject to the approval of the budget director and the unanimous recommendation of the members of the budget committee. However, before approving a further appropriation under this subsection, the budget director shall explain to the budget committee the factors indicating that a condition described in subdivision (2) would be met.
    (b) If:
        (1) the sums appropriated by the general assembly in the biennial budget to the family and social services administration for Medicaid assistance, Medicaid administration, public assistance (TANF), and the IMPACT (JOBS) work program are insufficient to enable the family and social services administration to meet its obligations; and
        (2) neither of the conditions in subsection (a)(2) would result from a failure to appropriate additional funds;
then there are appropriated further sums as may be necessary to remedy a situation described in this subsection, subject to the approval of the budget director and the unanimous recommendation of the members of the budget committee. However, before approving a further appropriation under this subsection, the budget director shall explain to the budget committee the factors indicating that a condition described in subdivision (2) would be met.
    (c) Notwithstanding IC 12-14 and IC 12-15 (except for a clinical advisory panel established under IC 12-15), and except as provided in subsection (d), the office of the secretary may by rule adjust programs, eligibility standards, and benefit levels to limit expenditures from Medicaid assistance, Medicaid administration, public assistance (TANF), and the IMPACT (JOBS) work program. to levels appropriated by the general assembly in the biennial budget. However, if there are additional appropriations under subsection (a) or (b), the office of the secretary may by rule adjust programs, eligibility standards, and benefit levels to limit expenditures from Medicaid assistance, Medicaid administration, public assistance (TANF), and the IMPACT (JOBS) program to levels that are further appropriated under subsection (a) or (b). The office of the secretary may adopt emergency rules under IC 4-22-2-37.1 to make an adjustment authorized by this subsection. However, adjustments under this subsection may not:
        (1) violate a provision of federal law; or
        (2) jeopardize the state's share of federal financial participation applicable to the state appropriations contained in the biennial budget for Medicaid assistance, Medicaid administration, public assistance (TANF), and the IMPACT (JOBS) work program.
    (d) Subject to IC 12-15-21-3, any adjustments made under subsection (c) must:
        (1) allow for a licensed provider under IC 12-15 to deliver services within the scope of the provider's license if the benefit is covered under IC 12-15; and
        (2) provide access to services under IC 12-15 from a provider under IC 12-15-12.
SOURCE: IC 12-8-2-3; (11)PD4580.81. -->     SECTION 113. IC 12-8-2-3, AS AMENDED BY P.L.1-2007, SECTION 111, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. Unless otherwise provided by a statute, this chapter applies to the following:
        (1) The family and social services committee established by IC 12-8-3-2.
        (2) (1) The following advisory councils:
            (A) The division of disability and rehabilitative services advisory council.
            (B) The division of family resources advisory council.
            (C) The division of mental health and addiction advisory council.
        (3) (2) A body:
            (A) established by statute for a division; and
            (B) whose enabling statute makes this chapter applicable to the body.
SOURCE: IC 12-8-2-3.5; (11)PD4580.82. -->     SECTION 114. IC 12-8-2-3.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.5. Up to five (5) individuals appointed by the secretary to serve on an entity not described in section 3(2) 3(1) of this chapter may be appointed to serve concurrently on an advisory council described in section 3(2) 3(1) of this chapter. However, an individual may not serve concurrently on more than one (1) advisory council described in section 3(2) 3(1) of this chapter.
SOURCE: IC 12-8-8-4; (11)PD4580.83. -->     SECTION 115. IC 12-8-8-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) Except as provided in subsection (c), A director may adopt rules under IC 4-22-2 relating to the operation of the director's division and to implement the programs of the director's division.
    (b) Except as provided in subsection (c), Whenever a division is required to adopt rules under IC 4-22-2, the director of the division is the statutory authority that adopts the rules.
    (c) Rules adopted by a director must be approved by the family and social services committee established by IC 12-8-3-2 before submission to the attorney general under IC 4-22-2-31. However, nothing in this section prevents a director from presenting a proposed rule to the family and social services committee established by IC 12-8-3-2 for the committee's review and recommendations before the adoption of the rule under IC 4-22-2-29 and approval of the rule by the committee under IC 12-8-1.
SOURCE: IC 12-9-2-3; (11)PD4580.84. -->     SECTION 116. IC 12-9-2-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The director may do the following:
        (1) Employ experts and consultants to assist the division in carrying out the division's functions.
        (2) Utilize, with their consent, the services and facilities of other state agencies without reimbursement.
        (3) Accept in the name of the division, for use in carrying out the functions of the division, money or property received by gift, bequest, or otherwise.
        (4) Accept voluntary and uncompensated services.
        (5) Expend money made available to the division according to policies enforced by the budget agency.
        (6) Adopt rules under IC 4-22-2 necessary to carry out the functions of the division. However, rules adopted by the director must be approved by the family and social services committee established by IC 12-8-3-2 before submission to the attorney general under IC 4-22-2-31.
        (7) Establish and implement the policies and procedures necessary to carry out the functions of the division.
        (8) Perform any other acts necessary to carry out the functions of the division.
    (b) The director shall compile information and statistics from each bureau concerning the ethnicity and gender of a program or service recipient. The director may adopt rules under IC 4-22-2 necessary to

implement this subsection.

SOURCE: IC 12-9.1-2-3; (11)PD4580.85. -->     SECTION 117. IC 12-9.1-2-3, AS ADDED BY P.L.141-2006, SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) The director may do the following:
        (1) Employ experts and consultants to assist the division in carrying out the division's functions.
        (2) Use, with their consent, the services and facilities of other state agencies without reimbursement.
        (3) Accept in the name of the division, for use in carrying out the functions of the division, money or property received by gift, bequest, or otherwise.
        (4) Accept voluntary and uncompensated services.
        (5) Expend money made available to the division according to policies enforced by the budget agency.
        (6) Adopt rules under IC 4-22-2 necessary to carry out the functions of the division. However, rules adopted by the director must be approved by the family and social services committee established by IC 12-8-3-2 before submission to the attorney general under IC 4-22-2-31.
        (7) Establish and implement the policies and procedures necessary to carry out the functions of the division.
        (8) Perform any other acts necessary to carry out the functions of the division.
    (b) The director shall compile information and statistics from each bureau concerning the ethnicity and gender of a program or service recipient. The director may adopt rules under IC 4-22-2 necessary to implement this subsection.
SOURCE: IC 12-10-6-1; (11)PD4580.86. -->     SECTION 118. IC 12-10-6-1, AS AMENDED BY P.L.99-2007, SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. (a) An individual who:
        (1) is at least sixty-five (65) years of age, is blind, or has a disability; and
        (2) is a resident of a county home;
is eligible to receive assistance payments from the state if the individual would be eligible for assistance under the federal Supplemental Security Income program except for the fact that the individual is residing in a county home.
    (b) The amount of nonmedical assistance to be paid on behalf of a resident in a county home must be based on the daily rate established by the division. The rate for facilities under this section and licensed under IC 16-28 may not exceed an upper rate limit established by a rule adopted by the division.
    (c) The rate for facilities under this section but not licensed under IC 16-28 must be the lesser of:
        (1) an upper rate limit established by a rule adopted by the division; or
        (2) a reasonable and adequate rate to meet the costs, determined by generally accepted accounting principles, that are incurred by efficiently and economically operated facilities in order to provide care and services in conformity with quality and safety standards and applicable laws and rules.
    (d) (b) The recipient shall be paid or allowed to retain from the recipient's income a monthly personal allowance. The amount:
        (1) is fifty-two dollars ($52);
        (2) is exempt from income eligibility consideration by the division; and
        (3) may be exclusively used by the recipient for personal needs.
    (e) (c) In addition to the amount that may be retained as a personal allowance under this section, an individual is allowed to retain an amount equal to the individual's state and local income tax liability. The amount that may be retained during a month may not exceed one-third (1/3) of the individual's state and local income tax liability for the calendar quarter in which the month occurs. This amount is exempt from income eligibility consideration by the division. The amount retained shall be used by the individual to pay state or local income taxes owed.
    (f) (d) In addition to the amounts that may be retained under subsections (d) (b) and (e), (c), an eligible individual may retain a Holocaust victim's settlement payment. The payment is exempt from income eligibility consideration by the division.
    (g) (e) The personal allowance for one (1) month for an individual described in subsection (a) is the amount that an individual would be entitled to retain under subsection (d) (b) plus an amount equal to one-half (1/2) of the remainder of:
        (1) gross earned income for that month; minus
        (2) the sum of:
            (A) sixteen dollars ($16); plus
            (B) the amount withheld from the person's paycheck for that month for payment of state income tax, federal income tax, and the tax prescribed by the federal Insurance Contribution Act (26 U.S.C. 3101 et seq.); plus
            (C) transportation expenses for that month; plus
            (D) any mandatory expenses required by the employer as a condition of employment.
    (h) The division, in cooperation with the state department of health taking into account licensure requirements under IC 16-28, shall adopt rules under IC 4-22-2 governing the reimbursement to facilities under this section. The rules must be designed to determine the costs that must be incurred by efficiently and economically operated facilities to provide room, board, laundry, and other services, along with minimal administrative direction to individuals who receive residential care in the facilities under this section. A rule adopted under this subsection by:
        (1) the division; or
        (2) the state department of health;
must conform to the rules for residential care facilities that are licensed under IC 16-28.
    (i) A rate established under this section may be appealed according to the procedures under IC 4-21.5.
    (j) The division shall annually review each facility's rate using the following:
        (1) Generally accepted accounting principles.
        (2) The costs incurred by efficiently and economically operated facilities in order to provide care and services in conformity with quality and safety standards and applicable laws and rules.
SOURCE: IC 12-10-6-2.1; (11)PD4580.87. -->     SECTION 119. IC 12-10-6-2.1, AS AMENDED BY P.L.121-2008, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.1. (a) An individual who is incapable of residing in the individual's own home may apply for residential care assistance under this section. The determination of eligibility for residential care assistance is the responsibility of the division. Except as provided in subsections (g) and (i), subsection (h), an individual is eligible for residential care assistance if the division determines that the individual:
        (1) is a recipient of Medicaid or the federal Supplemental Security Income program;
        (2) is incapable of residing in the individual's own home because of dementia, mental illness, or a physical disability;
        (3) requires a degree of care less than that provided by a health care facility licensed under IC 16-28;
        (4) can be adequately cared for in a residential care setting; and
        (5) has not made any asset transfer prohibited under the state plan or in 42 U.S.C. 1396p(c) in order to be eligible for Medicaid.
    (b) Individuals with mental retardation may not be admitted to a home or facility that provides residential care under this section.
    (c) A service coordinator employed by the division may:
        (1) evaluate a person seeking admission to a home or facility under subsection (a); or
        (2) evaluate a person who has been admitted to a home or facility under subsection (a), including a review of the existing evaluations in the person's record at the home or facility.
If the service coordinator determines the person evaluated under this subsection has mental retardation, the service coordinator may recommend an alternative placement for the person.
    (d) Except as provided in section 5 of this chapter, residential care consists of only room, board, and laundry, along with minimal administrative direction. State financial assistance may be provided for such care in a boarding or residential home of the applicant's choosing that is licensed under IC 16-28 or a Christian Science facility listed and certified by the Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc., that meets certain life safety standards considered necessary by the state fire marshal. Payment for such care shall be made to the provider of the care according to division directives and supervision. The amount of nonmedical assistance to be paid on behalf of a recipient living in a boarding home, residential home, or Christian Science facility shall be based on the daily rate established by the division. The rate for facilities that are referred to in this section and licensed under IC 16-28 may not exceed an upper rate limit established by a rule adopted by the division. The recipient may retain from the recipient's income a monthly personal allowance of fifty-two dollars ($52). This amount is exempt from income eligibility consideration by the division and may be exclusively used by the recipient for the recipient's personal needs. However, if the recipient's income is less than the amount of the personal allowance, the division shall pay to the recipient the difference between the amount of the personal allowance and the recipient's income. A reserve or an accumulated balance from such a source, together with other sources, may not be allowed to exceed the state's resource allowance allowed for adults eligible for state supplemental assistance or Medicaid as established by the rules of the office of Medicaid policy and planning.
    (e) In addition to the amount that may be retained as a personal allowance under this section, an individual shall be allowed to retain an amount equal to the individual's state and local income tax liability. The amount that may be retained during a month may not exceed one-third (1/3) of the individual's state and local income tax liability for the calendar quarter in which that month occurs. This amount is exempt from income eligibility consideration by the division. The amount retained shall be used by the individual to pay any state or local income taxes owed.
    (f) In addition to the amounts that may be retained under subsections (d) and (e), an eligible individual may retain a Holocaust victim's settlement payment. The payment is exempt from income eligibility consideration by the division.
    (g) The rate of payment to the provider shall be determined in accordance with a prospective prenegotiated payment rate predicated on a reasonable cost related basis, with a growth of profit factor, as determined in accordance with generally accepted accounting principles and methods, and written standards and criteria, as established by the division. The division shall establish an administrative appeal procedure to be followed if rate disagreement occurs if the provider can demonstrate to the division the necessity of costs in excess of the allowed or authorized fee for the specific boarding or residential home. The amount may not exceed the maximum established under subsection (d).
    (h) (g) The personal allowance for one (1) month for an individual described in subsection (a) is the amount that an individual would be entitled to retain under subsection (d) plus an amount equal to one-half (1/2) of the remainder of:
        (1) gross earned income for that month; minus
        (2) the sum of:
            (A) sixteen dollars ($16); plus
            (B) the amount withheld from the person's paycheck for that month for payment of state income

tax, federal income tax, and the tax prescribed by the federal Insurance Contribution Act (26 U.S.C. 3101 et seq.); plus
            (C) transportation expenses for that month; plus
            (D) any mandatory expenses required by the employer as a condition of employment.
    (i) (h) An individual who, before September 1, 1983, has been admitted to a home or facility that provides residential care under this section is eligible for residential care in the home or facility.
    (j) (i) The director of the division may contract with the division of mental health and addiction or the division of disability and rehabilitative services to purchase services for individuals with a mental illness or a developmental disability by providing money to supplement the appropriation for community residential care programs established under IC 12-22-2 or community residential programs established under IC 12-11-1.1-1.
    (k) (j) A person with a mental illness may not be placed in a Christian Science facility listed and certified by the Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc., unless the facility is licensed under IC 16-28.

SOURCE: IC 12-12.7-2-17; (11)PD4580.88. -->     SECTION 120. IC 12-12.7-2-17, AS ADDED BY P.L.93-2006, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17. (a) As used in this section, "per unit of treatment" means an increment of fifteen (15) minutes for services provided to an individual.
    (a) (b) A family shall participate in the cost of programs and services provided under this chapter to the extent allowed by federal law according to the following cost participation schedule:
    Percentage of        Copayment            Maximum
    Federal Income        Per Unit of    Monthly
    Poverty Level        Treatment    Cost Share
    At     But Not
    Least     More Than
    0%     250%     $     0     $     0
    251%     350%     $ 3 0.75    $ 24 $48
    351%     450%     $ 6 1.50    $ 48 $96
    451%     550%     $ 15 3.75    $ 120 $240
    551%     650%     $ 25 6.25    $ 200 $400
    651%     750%     $ 50 13    $ 400 $800
    751%     850%     $ 75 19    $ 600 $1,200
    851%     1000%     $ 100 25    $ 800 $1,600
    1001%          $ 120    $ 960
    (b) (c) A cost participation plan used by the division for families to participate in the cost of the programs and services provided under this chapter:
        (1) must:
            (A) be based on income and ability to pay;
            (B) provide for a review of a family's cost participation amount:
                (i) annually; and
                (ii) within thirty (30) days after the family reports a reduction in income; and
            (C) allow the division to waive a required copayment if other medical expenses or personal care needs expenses for any member of the family reduce the level of income the family has available to pay copayments under this section;
        (2) may allow a family to voluntarily contribute payments that exceed the family's required cost participation amount;
        (3) must require the family to allow the division access to all health care coverage information that the family has concerning the infant or toddler who is to receive services;
        (4) must require families to consent to the division billing third party payors for early intervention services provided;
        (5) may allow the division to waive the billing to third party payors if the family is able to demonstrate financial or personal hardship on the part of the family member; and
        (6) must require the division to waive the family's monthly copayments in any month for those services for which it receives payment from the family's health insurance coverage.
    (c) (d) Funds received through a cost participation plan under this section must be used to fund programs described in section 18 of this chapter.
SOURCE: IC 12-12.7-2-17.5; (11)PD4580.89. -->     SECTION 121. IC 12-12.7-2-17.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17.5. (a) Subject to subsection (b), the agency may do any of the following for any amount owed under section 17 of this chapter by a person if the amount owed is more than sixty (60) days past due:
        (1) Set off under IC 6-8.1-9.7 on any state tax refund owed to the person against the delinquent debt.
        (2) Terminate services provided to an individual under the program for failure to pay the cost participation set forth in section 17 of this chapter.
    (b) The agency may not terminate services under subsection (a)(2) until the agency has provided the family with written notice:
        (1) stating:
            (A) the amount of money owed by the family that is past due for services provided; and
            (B) the amount of payment necessary in order to prevent termination of services; and
        (2) advising the family to contact the agency:
            (A) for assistance; or
            (B) to negotiate an alternative payment arrangement or to recalculate the amount of payment owed.

SOURCE: IC 12-15-1.3-15; (11)PD4580.90. -->     SECTION 122. IC 12-15-1.3-15, AS ADDED BY SEA 490-2011, SECTION 264, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. (a) As used in this section, "division" refers to the division of disability and rehabilitative services established by IC 12-9-1-1.
    (b) As used in this section, "waiver" refers to any waiver administered by the office and the division under section 1915(c) of the federal Social Security Act.
    (c) The office shall apply to the United States Department of Health and Human Services for approval to amend a waiver to set priorities as described in subsection (d) in providing services under the waiver.
    (d) The waiver amendment must provide for the following individuals to be given priority in receiving services under the waiver:
        (1) An individual who is determined by the state department of health to no longer need or receive active treatment provided in a supervised group living setting.
        (2) An individual who is receiving service under the direction of the division in a supervised group living setting, nursing facility, or large private intermediate care facility and has a history of unexplained injuries or documented abuse that is substantiated by the division and that threatens the health and welfare of the individual.
        (3) A current resident, or the guardian of a resident who is incapacitated, of a large, private intermediate care facility for the mentally retarded who requests to leave the facility.
        (4) An individual who will be attaining the maximum age for a residential or group home setting

funded by the department of education, the division of family resources, or the office.
        (5) An individual for whom the primary caregiver of the individual is no longer able to care for the individual due to:
            (A) the death of the primary caregiver;
            (B) the long term institutionalization of the primary caregiver;
            (C) the long term incapacitation of the primary caregiver; or
            (D) the long term incarceration of the primary caregiver.
        (6) An individual who is on the waiver waiting list and has been determined to have a shortened life span as defined by the division.
        (7) Any other priority as determined by the division.
    (e) The office may not implement the amendment to the waiver until the office files an affidavit with the governor attesting that the amendment to the federal waiver applied for under this section is in effect. The office shall file the affidavit under this subsection not later than five (5) days after the office is notified that the waiver amendment is approved.
    (f) If the office receives approval for the amendment to the waiver under this section from the United States Department of Health and Human Services and the governor receives the affidavit filed under subsection (e), the office shall implement the amendment to the waiver not more than sixty (60) days after the governor receives the affidavit.
    (c) Before October 1, 2011, the office shall apply to the United States Department of Health and Human Services for approval to amend a waiver to set an emergency placement priority for individuals in the following situations:
        (1) Death of a primary caregiver where alternative placement in a supervised group living setting:
            (A) is not available; or
            (B) is determined by the division to be an inappropriate option.
        (2) A situation in which:
            (A) the primary caregiver is at least eighty (80) years of age; and
            (B) alternate placement in a supervised group living setting is not available or is determined by the division to be an inappropriate option.
        (3) There is evidence of abuse or neglect in the current institutional or home placement, and alternate placement in a supervised group living setting is not available or is determined by the division to be an inappropriate option.
        (4) There are other health and safety risks, as determined by the division director, and alternate placement in a supervised group living setting is not available or is determined by the division to be an inappropriate option.

     (d) The division shall report on a quarterly basis the following information to the division of disability and rehabilitative services advisory council established by IC 12-9-4-2 concerning each Medicaid waiver for which the office has been approved under this section to administer an emergency placement priority for individuals described in this section:
        (1) The number of applications for emergency placement priority waivers.
        (2) The number of individuals served on the waiver.
        (3) The number of individuals on a wait list for the waiver.

    (g) (e) The office may adopt rules under IC 4-22-2 necessary to implement this section.
    (h) (f) This section expires July 1, 2016.

SOURCE: IC 12-15-2-23; (11)PD4580.91. -->     SECTION 123. IC 12-15-2-23, AS ADDED BY P.L.14-2009, SECTION 1, IS AMENDED TO READ

AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 23. (a) This section is effective beginning October 1, 2009.
    (b) Except as provided in subsection (c), When the office conducts a look back (as described in 42 U.S.C. 1396p(c)) to determine, for purposes of eligibility, whether an individual improperly transferred assets, the office shall not consider in total one thousand two hundred dollars ($1,200) per year of contributions made by the individual to a:
        (1) family member; or
        (2) nonprofit organization;
as an improper transfer.
    (c) The office may disregard a contribution by an individual if the individual can demonstrate that the transfer follows a pattern that existed for at least three (3) years before applying for Medicaid or was not for the purpose of fraud.
    (d) (c) Any rule adopted by the office of the secretary concerning a transfer of property may not apply to a transfer of property that occurred before the effective date of the rule.

SOURCE: IC 12-15-2-23.5; (11)PD4580.92. -->     SECTION 124. IC 12-15-2-23.5, AS ADDED BY P.L.14-2009, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 23.5. (a) This section is effective beginning October 1, 2009.
    (b) The office may not implement the optional provision allowed in 42 U.S.C 1396p(c)(1)(A) to apply penalties specified in 42 U.S.C. 1396p(c)(1)(A) to a noninstitutionalized individual or the spouse of the noninstitutionalized individual for the disposal of assets for less than fair market value.
    (c) (b) In implementing the federal Deficit Reduction Act of 2005, the office shall comply with the following:
        (1) A rule adopted may not apply to the transfer of property or another transaction that occurred before the passage of the rule.
        (2) The office may not require an individual to return all assets in order to reduce a penalty period for the transfer of assets. The office shall allow a penalty period to be proportionally reduced for a partial return of assets.
SOURCE: IC 12-15-13-3.5; (11)PD4580.93. -->     SECTION 125. IC 12-15-13-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3.5. (a) As used in this section, "noninstitutional provider" means any Medicaid provider other than the following:
        (1) A health facility licensed under IC 16-28.
        (2) An ICF/MR (as defined in IC 16-29-4-2).
    (b) If the office of the secretary or the office of the secretary's designee believes that an overpayment to a noninstitutional provider has occurred, the office of the secretary or the office of the secretary's designee may submit to the noninstitutional provider a preliminary review of draft audit findings.
    (c) A noninstitutional provider that receives a preliminary review of draft audit findings under subsection (b) may request administrative reconsideration of the preliminary review of draft audit findings not later than forty-five (45) days after the issuance of the preliminary review of draft audit findings. The noninstitutional provider may submit comments along with the request for administrative reconsideration. The noninstitutional provider must request administrative reconsideration before filing an appeal.
    (d) Following administrative reconsideration of the preliminary review of draft audit findings and any comments submitted along with the noninstitutional provider's request for administrative consideration and if the office of the secretary or the office of the secretary's designee believes that

an overpayment has occurred, the office of the secretary or the office of the secretary's designee shall notify the noninstitutional provider in writing that the office of the secretary or the office of the secretary's designee:
        (1) believes that the overpayment has occurred; and
        (2) is issuing a final calculation of the overpayment.
    (e) A noninstitutional provider who receives a notice under subsection (d) may elect to do one (1) of the following:
        (1) Repay the amount of the final calculation not later than three hundred (300) days after the provider received the notice under subsection (d), including interest:
            (A) due from the noninstitutional provider; and
            (B) accruing from the date of overpayment.
        (2) Request a hearing by filing an administrative appeal not later than sixty (60) days after receiving the notice under subsection (d) and repay the amount of the final calculation of the overpayment under subsection (d) not later than three hundred (300) days after receiving the notice under subsection (d).
    (f) If:
        (1) a noninstitutional provider elects to proceed under subsection (e)(2); and
        (2) the office of the secretary or the office of the secretary's designee determines after the hearing and any subsequent appeal that the noninstitutional provider does not owe the money that the office of the secretary or the office of the secretary's designee believed the noninstitutional provider owed;
the office of the secretary or the office of the secretary's designee shall return the amount of the alleged overpayment, and any interest paid by the noninstitutional provider, and pay the noninstitutional provider interest on the money from the date of the noninstitutional provider's repayment.
    (g) Interest that is due under this section shall be paid at a rate that is determined by the commissioner of the department of state revenue under IC 6-8.1-10-1(c) as follows:
        (1) Interest due from a noninstitutional provider to the state shall be paid at the rate set by the commissioner for interest payments from the department of state revenue to a taxpayer.
        (2) Interest due from the state to a noninstitutional provider shall be paid at the rate set by the commissioner for interest payments from the department of state revenue to a taxpayer.
    (h) Interest on an overpayment to a noninstitutional provider is not due from the noninstitutional provider if the overpayment is the result of an error of:
        (1) the office; or
        (2) a contractor of the office;
as determined by the office of the secretary or the office of the secretary's designee.
    (i) If interest on an overpayment to a noninstitutional provider is due from the noninstitutional provider, the secretary or the secretary's designee may, in the course of negotiations with the noninstitutional provider regarding an appeal filed under subsection (e), reduce the amount of interest due from the noninstitutional provider.
    (j) Proceedings under this section are subject to IC 4-21.5.

SOURCE: IC 12-15-13-4; (11)PD4580.94. -->     SECTION 126. IC 12-15-13-4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) As used in this section, "institutional provider" means the following:
        (1) A health facility that is licensed under IC 16-28.
        (2) An ICF/MR (as defined in IC 16-29-4-2).
    (b) If the office of the secretary or the office of the secretary's designee believes that an overpayment to an institutional provider has occurred, the office of the secretary or the office of the secretary's designee may do the following:
        (1) Submit to the institutional provider a draft of the audit findings and accept comments from the institutional provider for consideration by the office of the secretary or the office of the secretary's designee before the audit findings are finalized.
        (2) Finalize the audit findings and issue the preliminary recalculated Medicaid rate.
    (c) An institutional provider that receives a preliminary recalculated Medicaid rate under subsection (b)(2) may request administrative reconsideration of the preliminary recalculated Medicaid rate not later than forty-five (45) days after the issuance of the preliminary recalculated rate. The institutional provider must request administrative reconsideration before filing an appeal.
    (d) Following reconsideration of an institutional provider's comments, and if the office of the secretary or the office of the secretary's designee believes that an overpayment has occurred, the office of the secretary or the office of the secretary's designee shall notify the institutional provider in writing that the office of the secretary or the office of the secretary's designee:
        (1) believes that the overpayment has occurred; and
        (2) is issuing a final recalculated Medicaid rate.
    (e) Upon the next payment cycle, the office of the secretary or the office of the secretary's designee shall retroactively implement the final recalculated Medicaid rate.
    (f) If the institutional provider is dissatisfied with the reconsideration response issued by the office of the secretary or the office of the secretary's designee, the institutional provider may request a hearing by filing an appeal with the office of the secretary not later than sixty (60) days after the issuance of the reconsideration response.
    (g) If an institutional provider requests a hearing under subsection (f) and the office of the secretary or the office of the secretary's designee determines after the hearing and any subsequent appeal that the institutional provider does not owe the money that the office of the secretary or the office of the secretary's designee believed the institutional provider owed, the office of the secretary or the office of the secretary's designee shall repay the following to the institutional provider not later than thirty (30) days after the completion of the hearing:
        (1) The amount of the alleged overpayment.
        (2) Any interest paid by the institutional provider.
        (3) Interest on the money described in subdivisions (1) and (2) from the date of the institutional provider's repayment.
    (h) Interest due under this section by either the institutional provider or the office of the secretary shall be paid at a rate that is determined by the commissioner of the department of state revenue under IC 6-8.1-10-1(c) at the rate set by the commissioner for interest payments from the department of state revenue to a taxpayer.
    (i) Interest on an overpayment to an institutional provider is not due from the institutional provider if the office of the secretary or the office of the secretary's designee determines that the overpayment is the result of an error by the following:
        (1) The office of the secretary.
        (2) A contractor of the office of the secretary.
    (j) If interest on an overpayment to an institutional provider is due from the institutional provider, the office of the secretary or the office of the secretary's designee may, in the course of negotiations with the institutional provider concerning an appeal filed under this section, reduce the amount of interest due from the institutional provider.

SOURCE: IC 12-15-14-2.5; (11)PD4580.95. -->     SECTION 127. IC 12-15-14-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.5. (a) The office may not reimburse a nursing facility provider for reserving a bed for a Medicaid recipient when the Medicaid recipient is not present in the nursing facility due to a hospital stay or leave of absence for therapeutic reasons.
     (b) Not later than September 30, 2011, the office shall submit a state Medicaid plan amendment to the federal Centers for Medicare and Medicaid Services to implement this section.
SOURCE: IC 12-15-15-1.1; (11)PD4580.96. -->     SECTION 128. IC 12-15-15-1.1, AS AMENDED BY P.L.218-2007, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1.1. (a) This section applies to a hospital that is:
        (1) licensed under IC 16-21; and
        (2) established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23.
This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
    (b) For a state fiscal year ending after June 30, 2003, in addition to reimbursement received under section 1 of this chapter, a hospital is entitled to reimbursement in an amount calculated as follows:
        STEP ONE: The office shall identify the aggregate inpatient hospital services, reimbursable under this article and under the state Medicaid plan, that were provided during the state fiscal year by hospitals established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23.
        STEP TWO: For the aggregate inpatient hospital services identified under STEP ONE, the office shall calculate the aggregate payments made under this article and under the state Medicaid plan to hospitals established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23, excluding payments under IC 12-15-16, IC 12-15-17, and IC 12-15-19.
        STEP THREE: The office shall calculate a reasonable estimate of the amount that would have been paid in the aggregate by the office for the inpatient hospital services described in STEP ONE under Medicare payment principles.
        STEP FOUR: Subtract the amount calculated under STEP TWO from the amount calculated under STEP THREE.
        STEP FIVE: Subject to subsection (g), from the amount calculated under STEP FOUR, allocate to a hospital established and operated under IC 16-22-8 an amount not to exceed one hundred percent (100%) of the difference between:
            (A) the total cost for the hospital's provision of inpatient services covered under this article for the hospital's fiscal year ending during the state fiscal year; and
            (B) the total payment to the hospital for its provision of inpatient services covered under this article for the hospital's fiscal year ending during the state fiscal year, excluding payments under IC 12-15-16, IC 12-15-17, and IC 12-15-19.
        STEP SIX: Subtract the amount calculated under STEP FIVE from the amount calculated under STEP FOUR.
        STEP SEVEN: Distribute an amount equal to the amount calculated under STEP SIX to the eligible hospitals established and operated under IC 16-22-2 or IC 16-23 described in subsection (c) in an amount not to exceed each hospital's Medicaid shortfall as defined in subsection (f).
    (c) Subject to subsection (e), reimbursement for a state fiscal year under this section consists of payments made after the close of each state fiscal year. A hospital is not eligible for a payment described in this subsection unless an intergovernmental transfer or certification of expenditures is made under subsection (d).
    (d) Subject to subsection (e):
        (1) an intergovernmental transfer may be made by or on behalf of the hospital; or
        (2) a certification of expenditures as eligible for federal financial participation may be made;
after the close of each state fiscal year. An intergovernmental transfer under this subsection must be made to the Medicaid indigent care trust fund in an amount equal to a percentage, as determined by the office, of the amount to be distributed to the hospital under this section. The office shall use the intergovernmental transfer to fund payments made under this section.
    (e) A hospital that makes a certification of expenditures or makes or has an intergovernmental transfer made on the hospital's behalf under this section may appeal under IC 4-21.5 the amount determined by the office to be paid the hospital under subsection (b). The periods described in subsections (c) and (d) for the hospital or another entity to make an intergovernmental transfer or certification of expenditures are tolled pending the administrative appeal and any judicial review initiated by the hospital under IC 4-21.5. The distribution to other hospitals under subsection (b) may not be delayed due to an administrative appeal or judicial review instituted by a hospital under this subsection. If necessary, the office may make a partial distribution to the other eligible hospitals under subsection (b) pending the completion of a hospital's administrative appeal or judicial review, at which time the remaining portion of the payments due to the eligible hospitals shall be made. A partial distribution may be based upon estimates and trends calculated by the office.
    (f) For purposes of this section:
        (1) the Medicaid shortfall of a hospital established and operated under IC 16-22-2 or IC 16-23 is calculated as follows:
            STEP ONE: The office shall identify the inpatient hospital services, reimbursable under this article and under the state Medicaid plan, that were provided during the state fiscal year by the hospital.
            STEP TWO: For the inpatient hospital services identified under STEP ONE, the office shall calculate the payments made under this article and under the state Medicaid plan to the hospital, excluding payments under IC 12-15-16, IC 12-15-17, and IC 12-15-19.
            STEP THREE: The office shall calculate a reasonable estimate of the amount that would have been paid by the office for the inpatient hospital services described in STEP ONE under Medicare payment principles; and
        (2) a hospital's Medicaid shortfall is equal to the amount by which the amount calculated in STEP THREE of subdivision (1) is greater than the amount calculated in STEP TWO of subdivision (1).
    (g) The actual distribution of the amount calculated under STEP FIVE of subsection (b) to a hospital established and operated under IC 16-22-8 shall be made under the terms and conditions provided for the hospital in the state plan for medical assistance. Payment to a hospital under STEP FIVE of subsection (b) is not a condition precedent to the tender of payments to hospitals under STEP SEVEN of subsection (b).
SOURCE: IC 12-15-15-1.3; (11)PD4580.97. -->     SECTION 129. IC 12-15-15-1.3, AS AMENDED BY P.L.218-2007, SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1.3. (a) This section applies to a hospital that is:
        (1) licensed under IC 16-21; and
        (2) established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23.
This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
    (b) For a state fiscal year ending after June 30, 2003, in addition to reimbursement received under section 1 of this chapter, a hospital is entitled to reimbursement in an amount calculated as follows:
        STEP ONE: The office shall identify the aggregate outpatient hospital services, reimbursable under

this article and under the state Medicaid plan, that were provided during the state fiscal year by hospitals established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23.
        STEP TWO: For the aggregate outpatient hospital services identified under STEP ONE, the office shall calculate the aggregate payments made under this article and under the state Medicaid plan to hospitals established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23, excluding payments under IC 12-15-16, IC 12-15-17, and IC 12-15-19.
        STEP THREE: The office shall calculate a reasonable estimate of the amount that would have been paid in the aggregate by the office under Medicare payment principles for the outpatient hospital services described in STEP ONE.
        STEP FOUR: Subtract the amount calculated under STEP TWO from the amount calculated under STEP THREE.
        STEP FIVE: Subject to subsection (g), from the amount calculated under STEP FOUR, allocate to a hospital established and operated under IC 16-22-8 an amount not to exceed one hundred percent (100%) of the difference between:
            (A) the total cost for the hospital's provision of outpatient services covered under this article for the hospital's fiscal year ending during the state fiscal year; and
            (B) the total payment to the hospital for its provision of outpatient services covered under this article for the hospital's fiscal year ending during the state fiscal year, excluding payments under IC 12-15-16, IC 12-15-17, and IC 12-15-19.
        STEP SIX: Subtract the amount calculated under STEP FIVE from the amount calculated under STEP FOUR.
        STEP SEVEN: Distribute an amount equal to the amount calculated under STEP SIX to the eligible hospitals established and operated under IC 16-22-2 or IC 16-23 described in subsection (c) in an amount not to exceed each hospital's Medicaid shortfall as defined in subsection (f).
    (c) A hospital is not eligible for a payment described in this section unless:
        (1) an intergovernmental transfer is made by the hospital or on behalf of the hospital; or
        (2) the hospital or another entity certifies the hospital's expenditures as eligible for federal financial participation.
    (d) Subject to subsection (e):
        (1) an intergovernmental transfer may be made by or on behalf of the hospital; or
        (2) a certification of expenditures as eligible for federal financial participation may be made;
after the close of each state fiscal year. An intergovernmental transfer under this subsection must be made to the Medicaid indigent care trust fund in an amount equal to a percentage, as determined by the office, of the amount to be distributed to the hospital under subsection (b). The office shall use the intergovernmental transfer to fund payments made under this section.
    (e) A hospital that makes a certification of expenditures or makes or has an intergovernmental transfer made on the hospital's behalf under this section may appeal under IC 4-21.5 the amount determined by the office to be paid by the hospital under subsection (b). The periods described in subsections (c) and (d) for the hospital or other entity to make an intergovernmental transfer or certification of expenditures are tolled pending the administrative appeal and any judicial review initiated by the hospital under IC 4-21.5. The distribution to other hospitals under subsection (b) may not be delayed due to an administrative appeal or judicial review instituted by a hospital under this subsection. If necessary, the office may make a partial distribution to the other eligible hospitals under subsection (b) pending the completion of a hospital's administrative appeal or judicial review, at which time the remaining portion of the payments due to the eligible hospitals must be made. A partial distribution may be calculated by the office based upon estimates

and trends.
    (f) For purposes of this section:
        (1) the Medicaid shortfall of a hospital established and operated under IC 16-22-2 or IC 16-23 is calculated as follows:
            STEP ONE: The office shall identify the outpatient hospital services, reimbursable under this article and under the state Medicaid plan, that were provided during the state fiscal year by the hospital.
            STEP TWO: For the outpatient hospital services identified under STEP ONE, the office shall calculate the payments made under this article and under the state Medicaid plan to the hospital, excluding payments under IC 12-15-16, IC 12-15-17, and IC 12-15-19.
            STEP THREE: The office shall calculate a reasonable estimate of the amount that would have been paid by the office for the outpatient hospital services described in STEP ONE under Medicare payment principles; and
        (2) a hospital's Medicaid shortfall is equal to the amount by which the amount calculated in STEP THREE of subdivision (1) is greater than the amount calculated in STEP TWO of subdivision (1).
    (g) The actual distribution of the amount calculated under STEP FIVE of subsection (b) to a hospital established and operated under IC 16-22-8 shall be made under the terms and conditions provided for the hospital in the state plan for medical assistance. Payment to a hospital under STEP FIVE of subsection (b) is not a condition precedent to the tender of payments to hospitals under STEP SEVEN of subsection (b).

SOURCE: IC 12-15-15-1.5; (11)PD4580.98. -->     SECTION 130. IC 12-15-15-1.5, AS AMENDED BY P.L.3-2008, SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1.5. (a) This section applies to a hospital that:
        (1) is licensed under IC 16-21;
        (2) is not a unit of state or local government; and
        (3) is not owned or operated by a unit of state or local government.
This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
    (b) For a state fiscal year ending after June 30, 2003, and before July 1, 2007, in addition to reimbursement received under section 1 of this chapter, a hospital eligible under this section is entitled to reimbursement in an amount calculated as follows:
        STEP ONE: The office shall identify the total inpatient hospital services and the total outpatient hospital services, reimbursable under this article and under the state Medicaid plan, that were provided during the state fiscal year by the hospitals described in subsection (a).
        STEP TWO: For the total inpatient hospital services and the total outpatient hospital services identified under STEP ONE, the office shall calculate the aggregate payments made under this article and under the state Medicaid plan to hospitals described in subsection (a), excluding payments under IC 12-15-16, IC 12-15-17, and IC 12-15-19.
        STEP THREE: The office shall calculate a reasonable estimate of the amount that would have been paid in the aggregate by the office for the inpatient hospital services and the outpatient hospital services identified in STEP ONE under Medicare payment principles.
        STEP FOUR: Subtract the amount calculated under STEP TWO from the amount calculated under STEP THREE.
        STEP FIVE: Distribute an amount equal to the amount calculated under STEP FOUR to the eligible hospitals described in subsection (a) as follows:
            (A) Subject to the availability of funds under IC 12-15-20-2(8)(D) to serve as the nonfederal share of such payment, the first ten million dollars ($10,000,000) of the amount calculated under STEP

FOUR for a state fiscal year shall be paid to a hospital described in subsection (a) that has more than sixty thousand (60,000) Medicaid inpatient days.
            (B) Following the payment to the hospital under clause (A) and subject to the availability of funds under IC 12-15-20-2(8)(D) to serve as the nonfederal share of such payments, the remaining amount calculated under STEP FOUR for a state fiscal year shall be paid to all hospitals described in subsection (a). The payments shall be made on a pro rata basis based on the hospitals' Medicaid inpatient days or other payment methodology approved by the Centers for Medicare and Medicaid Services. For purposes of this clause, a hospital's Medicaid inpatient days are the hospital's in-state and paid Medicaid fee for service and managed care days for the state fiscal year for which services are identified under STEP ONE, as determined by the office.
            (C) Subject to IC 12-15-20.7, in the event the entirety of the amount calculated under STEP FOUR is not distributed following the payments made under clauses (A) and (B), the remaining amount may be paid to hospitals described in subsection (a) that are eligible under this clause. A hospital is eligible for a payment under this clause only if the nonfederal share of the hospital's payment is provided by or on behalf of the hospital. The remaining amount shall be paid to those eligible hospitals:
                (i) on a pro rata basis in relation to all hospitals eligible under this clause based on the hospitals' Medicaid inpatient days; or
                (ii) other payment methodology determined by the office and approved by the Centers for Medicare and Medicaid Services.
    (c) As used in this subsection, "Medicaid supplemental payments" means Medicaid payments for hospitals that are in addition to Medicaid fee-for-service payments, Medicaid risk-based managed care payments, and Medicaid disproportionate share payments, and that are included in the Medicaid state plan, including Medicaid safety-net payments, and payments made under this section and sections 1.1, 1.3, 9, and 9.5 of this chapter. For a state fiscal year ending after June 30, 2007, in addition to the reimbursement received under section 1 of this chapter, a hospital eligible under this section is entitled to reimbursement in an amount calculated as follows:
        STEP ONE: The office shall identify the total inpatient hospital services and the total outpatient hospital services reimbursable under this article and under the state Medicaid plan that were provided during the state fiscal year for all hospitals described in subsection (a).
        STEP TWO: For the total inpatient hospital services and the total outpatient hospital services identified in STEP ONE, the office shall calculate the total payments made under this article and under the state Medicaid plan to all hospitals described in subsection (a). A calculation under this STEP excludes a payment made under the following:
            (A) IC 12-15-16.
            (B) IC 12-15-17.
            (C) IC 12-15-19.
        STEP THREE: The office shall calculate, under Medicare payment principles, a reasonable estimate of the total amount that would have been paid by the office for the inpatient hospital services and the outpatient hospital services identified in STEP ONE.
        STEP FOUR: Subtract the amount calculated under STEP TWO from the amount calculated under STEP THREE.
        STEP FIVE: Distribute an amount equal to the amount calculated under STEP FOUR to the eligible hospitals described in subsection (a) as follows:
            (A) As used in this clause, "Medicaid inpatient days" are the hospital's in-state paid Medicaid fee

for service and risk-based managed care days for the state fiscal year for which services are identified under STEP ONE, as determined by the office. Subject to the availability of funds transferred to the Medicaid indigent care trust fund under STEP FOUR of IC 12-16-7.5-4.5(c) and remaining in the Medicaid indigent care trust fund under IC 12-15-20-2(8)(G) to serve as the nonfederal share of the payments, the amount calculated under STEP FOUR for a state fiscal year shall be paid to all hospitals described in subsection (a). The payments shall be made on a pro rata basis, based on the hospitals' Medicaid inpatient days or in accordance with another payment methodology determined by the office and approved by the Centers for Medicare and Medicaid Services.
            (B) Subject to IC 12-15-20.7, if the entire amount calculated under STEP FOUR is not distributed following the payments made under clause (A), the remaining amount shall be paid as described in clauses (C) and (D) to a hospital that is described in subsection (a) and that is described as eligible under this clause. A hospital is eligible for a payment under clause (C) only if the hospital:
                (i) has less than sixty thousand (60,000) Medicaid inpatient days annually;
                (ii) was eligible for Medicaid disproportionate share hospital payments in the state fiscal year ending June 30, 1998, or the hospital met the office's Medicaid disproportionate share payment criteria based upon state fiscal year 1998 data and received a Medicaid disproportionate share payment for the state fiscal year ending June 30, 2001; and
                (iii) received a Medicaid disproportionate share payment under IC 12-15-19-2.1 for state fiscal years 2001, 2002, 2003, and 2004.
            The payment amount under clause (C) for an eligible hospital is subject to the availability of the nonfederal share of the hospital's payment being provided by the hospital or on behalf of the hospital.
            (C) For state fiscal years ending after June 30, 2007, but before July 1, 2009, payments to eligible hospitals described in clause (B) shall be made as follows:
                (i) The payment to an eligible hospital that merged two (2) hospitals under a single Medicaid provider number effective January 1, 2004, shall equal one hundred percent (100%) of the hospital's hospital-specific limit for the state fiscal year ending June 30, 2005, when the payment is combined with any Medicaid disproportionate share payment made under IC 12-15-19-2.1, Medicaid, and other Medicaid supplemental payments, paid or to be paid to the hospital for a state fiscal year.
                (ii) The payment to an eligible hospital described in clause (B) other than a hospital described in item (i) shall equal one hundred percent (100%) of the hospital's hospital specific limit for the state fiscal year ending June 30, 2004, when the payment is combined with any Medicaid disproportionate share payment made under IC 12-15-19-2.1, Medicaid, and other Medicaid supplemental payments, paid or to be paid to the hospital for a state fiscal year.
            (D) For state fiscal years beginning after June 30, 2009, payments to an eligible hospital described in clause (B) shall be made in a manner determined by the office.
            (E) Subject to IC 12-15-20.7, if the entire amount calculated under STEP FOUR is not distributed following the payments made under clause (A) and clauses (C) or (D), the remaining amount may be paid as described in clause (F) to a hospital described in subsection (a) that is described as eligible under this clause. A hospital is eligible for a payment for a state fiscal year under clause (F) if the hospital:
                (i) is eligible to receive Medicaid disproportionate share payments for the state fiscal year for which the Medicaid disproportionate share payment is attributable under IC 12-15-19-2.1, for

a state fiscal year ending after June 30, 2007; and
                (ii) does not receive a payment under clauses (C) or (D) for the state fiscal year.
            A payment to a hospital under this clause is subject to the availability of nonfederal matching funds.
            (F) Payments to eligible hospitals described in clause (E) shall be made:
                (i) to best use federal matching funds available for hospitals that are eligible for Medicaid disproportionate share payments under IC 12-15-19-2.1; and
                (ii) by using a methodology that allocates available funding under this clause, Medicaid supplemental payments, and payments under IC 12-15-19-2.1, in a manner in which all hospitals eligible under clause (E) receive payments in a manner that takes into account the situation of eligible hospitals that have historically qualified for Medicaid disproportionate share payments and ensures that payments for eligible hospitals are equitable.
            (G) If the Centers for Medicare and Medicaid Services does not approve the payment methodologies in clauses (A) through (F), the office may implement alternative payment methodologies that are eligible for federal financial participation to implement a program consistent with the payments for hospitals described in clauses (A) through (F).
    (d) A hospital described in subsection (a) may appeal under IC 4-21.5 the amount determined by the office to be paid to the hospital under STEP FIVE of subsections (b) or (c). The distribution to other hospitals under STEP FIVE of subsection (b) or (c) may not be delayed due to an administrative appeal or judicial review instituted by a hospital under this subsection. If necessary, the office may make a partial distribution to the other eligible hospitals under STEP FIVE of subsection (b) or (c) pending the completion of a hospital's administrative appeal or judicial review, at which time the remaining portion of the payments due to the eligible hospitals shall be made. A partial distribution may be based on estimates and trends calculated by the office.

SOURCE: IC 12-15-15-1.6; (11)PD4580.99. -->     SECTION 131. IC 12-15-15-1.6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1.6. (a) This section applies only if the office determines, based on information received from the federal United States Centers for Medicare and Medicaid Services, that payments made under section 1.5(b) STEP FIVE (A), (B), or (C) of this chapter will not be approved for federal financial participation. This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
    (b) If the office determines that payments made under section 1.5(b) STEP FIVE (A) of this chapter will not be approved for federal financial participation, the office may make alternative payments to payments under section 1.5(b) STEP FIVE (A) of this chapter if:
        (1) the payments for a state fiscal year are made only to a hospital that would have been eligible for a payment for that state fiscal year under section 1.5(b) STEP FIVE (A) of this chapter; and
        (2) the payments for a state fiscal year to each hospital are an amount that is as equal as possible to the amount each hospital would have received under section 1.5(b) STEP FIVE (A) of this chapter for that state fiscal year.
    (c) If the office determines that payments made under section 1.5(b) STEP FIVE (B) of this chapter will not be approved for federal financial participation, the office may make alternative payments to payments under section 1.5(b) STEP FIVE (B) of this chapter if:
        (1) the payments for a state fiscal year are made only to a hospital that would have been eligible for a payment for that state fiscal year under section 1.5(b) STEP FIVE (B) of this chapter; and
        (2) the payments for a state fiscal year to each hospital are an amount that is as equal as possible to the amount each hospital would have received under section 1.5(b) STEP FIVE (B) of this chapter

for that state fiscal year.
    (d) If the office determines that payments made under section 1.5(b) STEP FIVE (C) of this chapter will not be approved for federal financial participation, the office may make alternative payments to payments under section 1.5(b) STEP FIVE (C) of this chapter if:
        (1) the payments for a state fiscal year are made only to a hospital that would have been eligible for a payment for that state fiscal year under section 1.5(b) STEP FIVE (C) of this chapter; and
        (2) the payments for a state fiscal year to each hospital are an amount that is as equal as possible to the amount each hospital would have received under section 1.5(b) STEP FIVE (C) of this chapter for that state fiscal year.
    (e) If the office determines, based on information received from the federal United States Centers for Medicare and Medicaid Services, that payments made under subsection (b), (c), or (d) will not be approved for federal financial participation, the office shall use the funds that would have served as the nonfederal share of these payments for a state fiscal year to serve as the nonfederal share of a payment program for hospitals to be established by the office. The payment program must distribute payments to hospitals for a state fiscal year based upon a methodology determined by the office to be equitable under the circumstances.

SOURCE: IC 12-15-15-9; (11)PD4580.100. -->     SECTION 132. IC 12-15-15-9, AS AMENDED BY P.L.218-2007, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) For purposes of this section and IC 12-16-7.5-4.5, a payable claim is attributed to a county if the payable claim is submitted to the division by a hospital licensed under IC 16-21-2 for payment under IC 12-16-7.5 for care provided by the hospital to an individual who qualifies for the hospital care for the indigent program under IC 12-16-3.5-1 or IC 12-16-3.5-2 and:
        (1) who is a resident of the county;
        (2) who is not a resident of the county and for whom the onset of the medical condition that necessitated the care occurred in the county; or
        (3) whose residence cannot be determined by the division and for whom the onset of the medical condition that necessitated the care occurred in the county.
This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
    (b) For each state fiscal year ending after June 30, 2003, and before July 1, 2007, a hospital licensed under IC 16-21-2 that submits to the division during the state fiscal year a payable claim under IC 12-16-7.5 is entitled to a payment under subsection (c).
    (c) Except as provided in section 9.8 of this chapter and subject to section 9.6 of this chapter, for a state fiscal year, the office shall pay to a hospital referred to in subsection (b) an amount equal to the amount, based on information obtained from the division and the calculations and allocations made under IC 12-16-7.5-4.5, that the office determines for the hospital under STEP SIX of the following STEPS:
        STEP ONE: Identify:
            (A) each hospital that submitted to the division one (1) or more payable claims under IC 12-16-7.5 during the state fiscal year; and
            (B) the county to which each payable claim is attributed.
        STEP TWO: For each county identified in STEP ONE, identify:
            (A) each hospital that submitted to the division one (1) or more payable claims under IC 12-16-7.5 attributed to the county during the state fiscal year; and
            (B) the total amount of all hospital payable claims submitted to the division under IC 12-16-7.5 attributed to the county during the state fiscal year.
        STEP THREE: For each county identified in STEP ONE, identify the amount of county funds transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5.
        STEP FOUR: For each hospital identified in STEP ONE, with respect to each county identified in STEP ONE, calculate the hospital's percentage share of the county's funds transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5. Each hospital's percentage share is based on the total amount of the hospital's payable claims submitted to the division under IC 12-16-7.5 attributed to the county during the state fiscal year, calculated as a percentage of the total amount of all hospital payable claims submitted to the division under IC 12-16-7.5 attributed to the county during the state fiscal year.
        STEP FIVE: Subject to subsection (j), for each hospital identified in STEP ONE, with respect to each county identified in STEP ONE, multiply the hospital's percentage share calculated under STEP FOUR by the amount of the county's funds transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5.
        STEP SIX: Determine the sum of all amounts calculated under STEP FIVE for each hospital identified in STEP ONE with respect to each county identified in STEP ONE.
    (d) For state fiscal years beginning after June 30, 2007, a hospital that received a payment determined under STEP SIX of subsection (c) for the state fiscal year ending June 30, 2007, shall be paid in an amount equal to the amount determined for the hospital under STEP SIX of subsection (c) for the state fiscal year ending June 30, 2007.
    (e) A hospital's payment under subsection (c) or (d) is in the form of a Medicaid supplemental payment. The amount of a hospital's Medicaid supplemental payment is subject to the availability of funding for the non-federal share of the payment under subsection (f). The office shall make the payments under subsection (c) and (d) before December 15 that next succeeds the end of the state fiscal year.
    (f) The non-federal share of a payment to a hospital under subsection (c) or (d) is funded from the funds transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5.
    (g) The amount of a county's transferred funds available to be used to fund the non-federal share of a payment to a hospital under subsection (c) is an amount that bears the same proportion to the total amount of funds of the county transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5 that the total amount of the hospital's payable claims under IC 12-16-7.5 attributed to the county submitted to the division during the state fiscal year bears to the total amount of all hospital payable claims under IC 12-16-7.5 attributed to the county submitted to the division during the state fiscal year.
    (h) Any county's funds identified in subsection (g) that remain after the non-federal share of a hospital's payment has been funded are available to serve as the non-federal share of a payment to a hospital under section 9.5 of this chapter.
    (i) For purposes of this section, "payable claim" has the meaning set forth in IC 12-16-7.5-2.5(b)(1).
    (j) For purposes of subsection (c):
        (1) the amount of a payable claim is an amount equal to the amount the hospital would have received under the state's fee-for-service Medicaid reimbursement principles for the hospital care for which the payable claim is submitted under IC 12-16-7.5 if the individual receiving the hospital care had been a Medicaid enrollee; and
        (2) a payable hospital claim under IC 12-16-7.5 includes a payable claim under IC 12-16-7.5 for the hospital's care submitted by an individual or entity other than the hospital, to the extent permitted under the hospital care for the indigent program.
    (k) The amount calculated under STEP FIVE of subsection (c) for a hospital with respect to a county may not exceed the total amount of the hospital's payable claims attributed to the county during the state

fiscal year.

SOURCE: IC 12-15-15-9.5; (11)PD4580.101. -->     SECTION 133. IC 12-15-15-9.5, AS AMENDED BY P.L.3-2008, SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9.5. (a) For purposes of this section and IC 12-16-7.5-4.5, a payable claim is attributed to a county if the payable claim is submitted to the division by a hospital licensed under IC 16-21-2 for payment under IC 12-16-7.5 for care provided by the hospital to an individual who qualifies for the hospital care for the indigent program under IC 12-16-3.5-1 or IC 12-16-3.5-2 and:
        (1) who is a resident of the county;
        (2) who is not a resident of the county and for whom the onset of the medical condition that necessitated the care occurred in the county; or
        (3) whose residence cannot be determined by the division and for whom the onset of the medical condition that necessitated the care occurred in the county.
This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
    (b) For each state fiscal year ending after June 30, 2003, but before July 1, 2007, a hospital licensed under IC 16-21-2:
        (1) that submits to the division during the state fiscal year a payable claim under IC 12-16-7.5; and
        (2) whose payment under section 9(c) of this chapter was less than the total amount of the hospital's payable claims under IC 12-16-7.5 submitted by the hospital to the division during the state fiscal year;
is entitled to a payment under subsection (c).
    (c) Subject to section 9.6 of this chapter, for a state fiscal year, the office shall pay to a hospital referred to in subsection (b) an amount equal to the amount, based on information obtained from the division and the calculations and allocations made under IC 12-16-7.5-4.5, that the office determines for the hospital under STEP EIGHT of the following STEPS:
        STEP ONE: Identify each county whose transfer of funds to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5 for the state fiscal year was less than the total amount of all hospital payable claims attributed to the county and submitted to the division during the state fiscal year.
        STEP TWO: For each county identified in STEP ONE, calculate the difference between the amount of funds of the county transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5 and the total amount of all hospital payable claims attributed to the county and submitted to the division during the state fiscal year.
        STEP THREE: Calculate the sum of the amounts calculated for the counties under STEP TWO.
        STEP FOUR: Identify each hospital whose payment under section 9(c) of this chapter was less than the total amount of the hospital's payable claims under IC 12-16-7.5 submitted by the hospital to the division during the state fiscal year.
        STEP FIVE: Calculate for each hospital identified in STEP FOUR the difference between the hospital's payment under section 9(c) of this chapter and the total amount of the hospital's payable claims under IC 12-16-7.5 submitted by the hospital to the division during the state fiscal year.
        STEP SIX: Calculate the sum of the amounts calculated for each of the hospitals under STEP FIVE.
        STEP SEVEN: For each hospital identified in STEP FOUR, calculate the hospital's percentage share of the amount calculated under STEP SIX. Each hospital's percentage share is based on the amount calculated for the hospital under STEP FIVE calculated as a percentage of the sum calculated under STEP SIX.
        STEP EIGHT: For each hospital identified in STEP FOUR, multiply the hospital's percentage share

calculated under STEP SEVEN by the sum calculated under STEP THREE. The amount calculated under this STEP for a hospital may not exceed the amount by which the hospital's total payable claims under IC 12-16-7.5 submitted during the state fiscal year exceeded the amount of the hospital's payment under section 9(c) of this chapter.
    (d) For state fiscal years beginning after June 30, 2007, a hospital that received a payment determined under STEP EIGHT of subsection (c) for the state fiscal year ending June 30, 2007, shall be paid an amount equal to the amount determined for the hospital under STEP EIGHT of subsection (c) for the state fiscal year ending June 30, 2007.
    (e) A hospital's payment under subsection (c) or (d) is in the form of a Medicaid supplemental payment. The amount of the hospital's add-on payment is subject to the availability of funding for the nonfederal share of the payment under subsection (f). The office shall make the payments under subsection (c) or (d) before December 15 that next succeeds the end of the state fiscal year.
    (f) The nonfederal share of a payment to a hospital under subsection (c) or (d) is derived from funds transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5 and not expended under section 9 of this chapter.
    (g) Except as provided in subsection (h), the office may not make a payment under this section until the payments due under section 9 of this chapter for the state fiscal year have been made.
    (h) If a hospital appeals a decision by the office regarding the hospital's payment under section 9 of this chapter, the office may make payments under this section before all payments due under section 9 of this chapter are made if:
        (1) a delay in one (1) or more payments under section 9 of this chapter resulted from the appeal; and
        (2) the office determines that making payments under this section while the appeal is pending will not unreasonably affect the interests of hospitals eligible for a payment under this section.
    (i) Any funds transferred to the Medicaid indigent care trust fund under IC 12-16-7.5-4.5 remaining after payments are made under this section shall be used as provided in IC 12-15-20-2(8).
    (j) For purposes of subsection (c):
        (1) "payable claim" has the meaning set forth in IC 12-16-7.5-2.5(b);
        (2) the amount of a payable claim is an amount equal to the amount the hospital would have received under the state's fee-for-service Medicaid reimbursement principles for the hospital care for which the payable claim is submitted under IC 12-16-7.5 if the individual receiving the hospital care had been a Medicaid enrollee; and
        (3) a payable hospital claim under IC 12-16-7.5 includes a payable claim under IC 12-16-7.5 for the hospital's care submitted by an individual or entity other than the hospital, to the extent permitted under the hospital care for the indigent program.

SOURCE: IC 12-15-16-6; (11)PD4580.102. -->     SECTION 134. IC 12-15-16-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) As used in this section, "low income utilization rate" refers to the low income utilization rate described in section 3 of this chapter.
    (b) Hospitals that qualify for basic disproportionate share under section 1(a) of this chapter shall receive disproportionate share payments as follows:
        (1) For the state fiscal year ending June 30, 1999, a pool not exceeding twenty-one million dollars ($21,000,000) shall be distributed to all hospitals licensed under IC 16-21 that qualify under section 1(a)(1) of this chapter. The funds in the pool must be distributed to qualifying hospitals in proportion to each hospital's Medicaid day utilization rate and Medicaid discharges, as determined based on data from the most recent audited cost report on file with the office. Any funds remaining in the pool referred to in this subdivision following distribution to all qualifying hospitals shall be transferred to

the pool distributed under subdivision (3).
        (2) Hospitals licensed under IC 16-21 that qualify under both section 1(a)(1) and 1(a)(2) of this chapter shall receive a disproportionate share payment in accordance with subdivision (1).
        (3) For the state fiscal year ending June 30, 1999, a pool not exceeding five million dollars ($5,000,000), subject to adjustment by the transfer of any funds remaining in the pool referred to in subdivision (1), following distribution to all qualifying hospitals, shall be distributed to all hospitals licensed under IC 16-21 that:
            (A) qualify under section 1(a)(1) or 1(a)(2) of this chapter; and
            (B) have at least twenty-five thousand (25,000) Medicaid inpatient days per year, based on data from each hospital's Medicaid cost report for the fiscal year ended during state fiscal year 1996.
The funds in the pool must be distributed to qualifying hospitals in proportion to each hospital's Medicaid day utilization rate and total Medicaid patient days, as determined based on data from the most recent audited cost report on file with the office. Payments under this subdivision are in place of the payments made under subdivisions (1) and (2).
    (c) This subsection does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. Other institutions that qualify as disproportionate share providers under section 1 of this chapter, in each state fiscal year, shall receive disproportionate share payments as follows:
        (1) For each of the state fiscal years ending after June 30, 1995, a pool not exceeding two million dollars ($2,000,000) shall be distributed to all private psychiatric institutions licensed under IC 12-25 that qualify under section 1(a)(1) or 1(a)(2) of this chapter. The funds in the pool must be distributed to the qualifying institutions in proportion to each institution's Medicaid day utilization rate as determined based on data from the most recent audited cost report on file with the office.
        (2) A pool not exceeding one hundred ninety-one million dollars ($191,000,000) for all state fiscal years ending after June 30, 1995, shall be distributed to all state mental health institutions under IC 12-24-1-3 that qualify under either section 1(a)(1) or 1(a)(2) of this chapter. The funds in the pool must be distributed to each qualifying institution in proportion to each institution's low income utilization rate, as determined based on the most recent data on file with the office.
    (d) This subsection does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. Disproportionate share payments described in this section shall be made on an interim basis throughout the year, as provided by the office.

SOURCE: IC 12-15-17-1; (11)PD4580.103. -->     SECTION 135. IC 12-15-17-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. A disproportionate share payment shall be made to:
        (1) a hospital licensed under IC 16-21;
        (2) a state mental health institution under IC 12-24-1-3; and
        (3) a private psychiatric institution licensed under IC 12-25;
that serves a disproportionate share of Medicaid recipients and other low income patients as determined under IC 12-15-16-1. However, a provider may not be defined as a disproportionate share provider under IC 12-15-16-1 unless the provider has a Medicaid inpatient utilization rate (as defined in 42 U.S.C. 1396r-4(b)(2)) of at least one percent (1%). Subdivisions (2) and (3) do not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
SOURCE: IC 12-15-19-2.1; (11)PD4580.104. -->     SECTION 136. IC 12-15-19-2.1, AS AMENDED BY P.L.218-2007, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.1. (a) This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. For each state fiscal year ending on or after June 30, 2000, the office shall develop a disproportionate share payment methodology that ensures that each hospital qualifying for disproportionate share payments under

IC 12-15-16-1(a) timely receives total disproportionate share payments that do not exceed the hospital's hospital specific limit provided under 42 U.S.C. 1396r-4(g). The payment methodology as developed by the office must:
        (1) maximize disproportionate share hospital payments to qualifying hospitals to the extent practicable;
        (2) take into account the situation of those qualifying hospitals that have historically qualified for Medicaid disproportionate share payments; and
        (3) ensure that payments for qualifying hospitals are equitable.
    (b) Total disproportionate share payments to a hospital under this chapter shall not exceed the hospital specific limit provided under 42 U.S.C. 1396r-4(g). The hospital specific limit for a state fiscal year shall be determined by the office taking into account data provided by each hospital that is considered reliable by the office based on a system of periodic audits, the use of trending factors, and an appropriate base year determined by the office. The office may require independent certification of data provided by a hospital to determine the hospital's hospital specific limit.
    (c) The office shall include a provision in each amendment to the state plan regarding Medicaid disproportionate share payments that the office submits to the federal Centers for Medicare and Medicaid Services that, as provided in 42 CFR 447.297(d)(3), allows the state to make additional disproportionate share expenditures after the end of each federal fiscal year that relate back to a prior federal fiscal year. However, the total disproportionate share payments to:
        (1) each individual hospital; and
        (2) all qualifying hospitals in the aggregate;
may not exceed the limits provided by federal law and regulation.

SOURCE: IC 12-15-19-6; (11)PD4580.105. -->     SECTION 137. IC 12-15-19-6, AS AMENDED BY P.L.218-2007, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. The office is not required to make disproportionate share payments under this chapter from the Medicaid indigent care trust fund established by IC 12-15-20-1 until the fund has received sufficient deposits, including intergovernmental transfers of funds and certifications of expenditures, to permit the office to make the state's share of the required disproportionate share payments.
    (b) For state fiscal years beginning after June 30, 2006, if:
        (1) sufficient deposits have not been received; or
        (2) the statewide Medicaid disproportionate share allocation is insufficient to provide federal financial participation for the entirety of all eligible disproportionate share hospitals' hospital-specific limits;
the office shall reduce disproportionate share payments made under IC 12-15-19-2.1 and Medicaid safety-net payments made in accordance with the Medicaid state plan to eligible institutions using an equitable methodology consistent with subsection (c).
    (c) For state fiscal years beginning after June 30, 2006, payments reduced under this section shall, in accordance with the Medicaid state plan, be made:
        (1) to best utilize federal matching funds available for hospitals eligible for Medicaid disproportionate share payments under IC 12-15-19-2.1; and
        (2) by utilizing a methodology that allocates available funding under this subdivision, and Medicaid supplemental payments as defined in IC 12-15-15-1.5, in a manner that all hospitals eligible for Medicaid disproportionate share payments under IC 12-15-19-2.1 receive payments using a methodology that:
            (A) takes into account the situation of the eligible hospitals that have historically qualified for Medicaid disproportionate share payments; and
            (B) ensures that payments for eligible hospitals are equitable.
    (d) The percentage reduction shall be sufficient to ensure that payments do not exceed the statewide Medicaid disproportionate share allocation or the amounts that can be financed with:
        (1) the amount transferred from the hospital care for the indigent trust fund;
        (2) other intergovernmental transfers;
        (3) certifications of public expenditures; or
        (4) any other permissible sources of non-federal match.
SOURCE: IC 12-15-19-8; (11)PD4580.106. -->     SECTION 138. IC 12-15-19-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. (a) This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. A provider that qualifies as a municipal disproportionate share provider under IC 12-15-16-1 shall receive a disproportionate share adjustment, subject to the provider's hospital specific limits described in subsection (b), as follows:
        (1) For each state fiscal year ending on or after June 30, 1998, an amount shall be distributed to each provider qualifying as a municipal disproportionate share provider under IC 12-15-16-1. The total amount distributed shall not exceed the sum of all hospital specific limits for all qualifying providers.
        (2) For each municipal disproportionate share provider qualifying under IC 12-15-16-1 to receive disproportionate share payments, the amount in subdivision (1) shall be reduced by the amount of disproportionate share payments received by the provider under IC 12-15-16-6 or sections 1 or 2.1 of this chapter. The office shall develop a disproportionate share provider payment methodology that ensures that each municipal disproportionate share provider receives disproportionate share payments that do not exceed the provider's hospital specific limit specified in subsection (b). The methodology developed by the office shall ensure that a municipal disproportionate share provider receives, to the extent possible, disproportionate share payments that, when combined with any other disproportionate share payments owed to the provider, equals the provider's hospital specific limits.
    (b) Total disproportionate share payments to a provider under this chapter and IC 12-15-16 shall not exceed the hospital specific limit provided under 42 U.S.C. 1396r-4(g). The hospital specific limit for state fiscal years ending on or before June 30, 1999, shall be determined by the office taking into account data provided by each hospital for the hospital's most recent fiscal year or, if a change in fiscal year causes the most recent fiscal period to be less than twelve (12) months, twelve (12) months of data compiled to the end of the provider's fiscal year that ends within the most recent state fiscal year, as certified to the office by an independent certified public accounting firm. The hospital specific limit for all state fiscal years ending on or after June 30, 2000, shall be determined by the office taking into account data provided by each hospital that is deemed reliable by the office based on a system of periodic audits, the use of trending factors, and an appropriate base year determined by the office. The office may require independent certification of data provided by a hospital to determine the hospital's hospital specific limit.
    (c) For each of the state fiscal years:
        (1) beginning July 1, 1998, and ending June 30, 1999; and
        (2) beginning July 1, 1999, and ending June 30, 2000;
the total municipal disproportionate share payments available under this section to qualifying municipal disproportionate share providers is twenty-two million dollars ($22,000,000).
SOURCE: IC 12-15-19-10; (11)PD4580.107. -->     SECTION 139. IC 12-15-19-10, AS AMENDED BY P.L.2-2005, SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. For state fiscal years

beginning after June 30, 2000, the state shall pay providers as follows:
        (1) The state shall make municipal disproportionate share provider payments to providers qualifying under IC 12-15-16-1(b) until the state exceeds the state disproportionate share allocation (as defined in 42 U.S.C. 1396r-4(f)(2)).
        (2) After the state makes all payments under subdivision (1), if the state fails to exceed the state disproportionate share allocation (as defined in 42 U.S.C. 1396r-4(f)(2)), the state shall make disproportionate share provider payments to providers qualifying under IC 12-15-16-1(a).
        (3) After the state makes all payments under subdivision (2), if the state fails to exceed the state disproportionate share allocation (as defined in 42 U.S.C. 1396r-4(f)(2)), or the state limit on disproportionate share expenditures for institutions for mental diseases (as defined in 42 U.S.C. 1396r-4(h)), the state shall make community mental health center disproportionate share provider payments to providers qualifying under IC 12-15-16-1(c).

SOURCE: IC 12-15-20-2; (11)PD4580.108. -->     SECTION 140. IC 12-15-20-2, AS AMENDED BY P.L.218-2007, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. The Medicaid indigent care trust fund is established to pay the non-federal share of the following:
        (1) Enhanced disproportionate share payments to providers under IC 12-15-19-1.
        (2) Subject to subdivision (8), disproportionate share payments to providers under IC 12-15-19-2.1.
        (3) Medicaid payments for pregnant women described in IC 12-15-2-13 and infants and children described in IC 12-15-2-14.
        (4) Municipal disproportionate share payments to providers under IC 12-15-19-8.
        (5) Payments to hospitals under IC 12-15-15-9.
        (6) Payments to hospitals under IC 12-15-15-9.5.
        (7) Payments, funding, and transfers as otherwise provided in clauses (8)(D), (8)(F), and (8)(G).
        (8) Of the intergovernmental transfers deposited into the Medicaid indigent care trust fund, the following apply:
            (A) The entirety of the intergovernmental transfers deposited into the Medicaid indigent care trust fund for state fiscal years ending on or before June 30, 2000, shall be used to fund the state's share of the disproportionate share payments to providers under IC 12-15-19-2.1.
            (B) Of the intergovernmental transfers deposited into the Medicaid indigent care trust fund for the state fiscal year ending June 30, 2001, an amount equal to one hundred percent (100%) of the total intergovernmental transfers deposited into the Medicaid indigent care trust fund for the state fiscal year beginning July 1, 1998, and ending June 30, 1999, shall be used to fund the state's share of disproportionate share payments to providers under IC 12-15-19-2.1. The remainder of the intergovernmental transfers, if any, for the state fiscal year shall be used to fund the state's share of additional Medicaid payments to hospitals licensed under IC 16-21 pursuant to a methodology adopted by the office.
            (C) Of the intergovernmental transfers deposited into the Medicaid indigent care trust fund, for state fiscal years beginning July 1, 2001, and July 1, 2002, an amount equal to:
                (i) one hundred percent (100%) of the total intergovernmental transfers deposited into the Medicaid indigent care trust fund for the state fiscal year beginning July 1, 1998; minus
                (ii) an amount equal to the amount deposited into the Medicaid indigent care trust fund under IC 12-15-15-9(d) for the state fiscal years beginning July 1, 2001, and July 1, 2002;
            shall be used to fund the state's share of disproportionate share payments to providers under IC 12-15-19-2.1. The remainder of the intergovernmental transfers, if any, must be used to fund the state's share of additional Medicaid payments to hospitals licensed under IC 16-21 pursuant

to a methodology adopted by the office.
            (D) The intergovernmental transfers, which shall include amounts transferred under IC 12-16-7.5-4.5, deposited into the Medicaid indigent care trust fund and the certifications of public expenditures deemed to be made to the medicaid indigent care trust fund, for the state fiscal years ending after June 30, 2005, but before July 1, 2007, shall be used, in descending order of priority, as follows:
                (i) As provided in clause (B) of STEP THREE of IC 12-16-7.5-4.5(b)(1) and clause (B) of STEP THREE of IC 12-16-7.5-4.5(b)(2), to fund the amount to be transferred to the office.
                (ii) As provided in clause (C) of STEP THREE of IC 12-16-7.5-4.5(b)(1) and clause (C) of STEP THREE of IC 12-16-7.5-4.5(b)(2), to fund the non-federal share of the payments made under IC 12-15-15-9 and IC 12-15-15-9.5.
                (iii) To fund the non-federal share of the payments made under IC 12-15-15-1.1, IC 12-15-15-1.3, and IC 12-15-19-8.
                (iv) As provided under clause (A) of STEP THREE of IC 12-16-7.5-4.5(b)(1) and clause (A) of STEP THREE of IC 12-16-7.5-4.5(b)(2), for the payment to be made under clause (A) of STEP FIVE of IC 12-15-15-1.5(b).
                (v) As provided under STEP FOUR of IC 12-16-7.5-4.5(b)(1) and STEP FOUR of IC 12-16-7.5-4.5(b)(2), to fund the payments to be made under clause (B) of STEP FIVE of IC 12-15-15-1.5(b).
                (vi) To fund, in an order of priority determined by the office to best use the available non-federal share, the programs listed in clause (H).
            (E) For state fiscal years ending after June 30, 2007, the total amount of intergovernmental transfers used to fund the non-federal share of payments to hospitals under IC 12-15-15-9 and IC 12-15-15-9.5 shall not exceed the amount provided in clause (G)(ii).
            (F) As provided in clause (D), for the following:
                (i) Each state fiscal year ending after June 30, 2003, but before July 1, 2005, an amount equal to the amount calculated under STEP THREE of the following formula shall be transferred to the office:
            STEP ONE: Calculate the product of thirty-five million dollars ($35,000,000) multiplied by the federal medical assistance percentage for federal fiscal year 2003.
            STEP TWO: Calculate the sum of the amounts, if any, reasonably estimated by the office to be transferred or otherwise made available to the office for the state fiscal year, and the amounts, if any, actually transferred or otherwise made available to the office for the state fiscal year, under arrangements whereby the office and a hospital licensed under IC 16-21-2 agree that an amount transferred or otherwise made available to the office by the hospital or on behalf of the hospital shall be included in the calculation under this STEP.
            STEP THREE: Calculate the amount by which the product calculated under STEP ONE exceeds the sum calculated under STEP TWO.
                (ii) The state fiscal years ending after June 30, 2005, but before July 1, 2007, an amount equal to thirty million dollars ($30,000,000) shall be transferred to the office.
            (G) Subject to IC 12-15-20.7-2(b), for each state fiscal year ending after June 30, 2007, the total amount in the Medicaid indigent care trust fund, including the amount of intergovernmental transfers of funds transferred, and the amounts of certifications of expenditures eligible for federal financial participation deemed to be transferred, to the Medicaid indigent care trust fund, shall be used to fund the following:


                (i) Thirty million dollars ($30,000,000) transferred to the office for the Medicaid budget.
                (ii) An amount not to exceed the non-federal share of payments to hospitals under IC 12-15-15-9 and IC 12-15-15-9.5.
                (iii) An amount not to exceed the non-federal share of payments to hospitals made under IC 12-15-15-1.1 and IC 12-15-15-1.3.
                (iv) An amount not to exceed the non-federal share of disproportionate share payments to hospitals under IC 12-15-19-8.
                (v) An amount not to exceed the non-federal share of payments to hospitals under clause (A) of STEP FIVE of IC 12-15-15-1.5(c).
                (vi) An amount not to exceed the non-federal share of Medicaid safety-net payments.
                (vii) An amount not to exceed the non-federal share of payments to hospitals made under clauses (C) or (D) of STEP FIVE of IC 12-15-15-1.5(c).
                (viii) An amount not to exceed the non-federal share of payments to hospitals made under clause (F) of STEP FIVE of IC 12-15-15-1.5(c).
                (ix) An amount not to exceed the non-federal share of disproportionate share payments to hospitals under IC 12-15-19-2.1.
                (x) If additional funds are available after making payments under items (i) through (ix), to fund other Medicaid supplemental payments for hospitals approved by the office and included in the Medicaid state plan.
             Items (ii) through (x) do not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011.
            (H) This clause does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. For purposes of clause (D)(vi), the office shall fund the following:
                (i) An amount equal to the non-federal share of the payments to the hospital that is eligible under this item, for payments made under clause (C) of STEP FIVE of IC 12-15-15-1.5(b) under an agreement with the office, Medicaid safety-net payments and any payment made under IC 12-15-19-2.1. The amount of the payments to the hospital under this item shall be equal to one hundred percent (100%) of the hospital's hospital-specific limit for state fiscal year 2005, when the payments are combined with payments made under IC 12-15-15-9, IC 12-15-15-9.5, and clause (B) of STEP FIVE of IC 12-15-15-1.5(b) for a state fiscal year. A hospital is eligible under this item if the hospital was eligible for Medicaid disproportionate share hospital payments for the state fiscal year ending June 30, 1998, the hospital received a Medicaid disproportionate share payment under IC 12-15-19-2.1 for state fiscal years 2001, 2002, 2003, and 2004, and the hospital merged two (2) hospitals under a single Medicaid provider number, effective January 1, 2004.
                (ii) An amount equal to the non-federal share of payments to hospitals that are eligible under this item, for payments made under clause (C) of STEP FIVE of IC 12-15-15-1.5(b) under an agreement with the office, Medicaid safety-net payments, and any payment made under IC 12-15-19-2.1. The amount of payments to each hospital under this item shall be equal to one hundred percent (100%) of the hospital's hospital-specific limit for state fiscal year 2004, when the payments are combined with payments made to the hospital under IC 12-15-15-9, IC 12-15-15-9.5, and clause (B) of STEP FIVE of IC 12-15-15-1.5(b) for a state fiscal year. A hospital is eligible under this item if the hospital did not receive a payment under item (i), the hospital has less than sixty thousand (60,000) Medicaid inpatient days annually, the hospital

either was eligible for Medicaid disproportionate share hospital payments for the state fiscal year ending June 30, 1998 or the hospital met the office's Medicaid disproportionate share payment criteria based on state fiscal year 1998 data and received a Medicaid disproportionate share payment for the state fiscal year ending June 30, 2001, and the hospital received a Medicaid disproportionate share payment under IC 12-15-19-2.1 for state fiscal years 2001, 2002, 2003, and 2004.
                (iii) Subject to IC 12-15-19-6, an amount not less than the non-federal share of Medicaid safety-net payments in accordance with the Medicaid state plan.
                (iv) An amount not less than the non-federal share of payments made under clause (C) of STEP FIVE of IC 12-15-15-1.5(b) under an agreement with the office to a hospital having sixty thousand (60,000) Medicaid inpatient days annually.
                (v) An amount not less than the non-federal share of Medicaid disproportionate share payments for hospitals eligible under this item, and made under IC 12-15-19-6 and the approved Medicaid state plan. A hospital is eligible for a payment under this item if the hospital is eligible for payments under IC 12-15-19-2.1.
                (vi) If additional funds remain after the payments made under (i) through (v), payments approved by the office and under the Medicaid state plan, to fund the non-federal share of other Medicaid supplemental payments for hospitals.

SOURCE: IC 12-15-20.7-2; (11)PD4580.109. -->     SECTION 141. IC 12-15-20.7-2, AS AMENDED BY P.L.218-2007, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) This section does not apply during the period that the office is assessing a hospital fee authorized by HEA 1001-2011. For each state fiscal year ending before July 1, 2005, and subject to section 3 of this chapter, the office shall make the payments identified in this section in the following order:
        (1) First, payments under IC 12-15-15-9 and IC 12-15-15-9.5.
        (2) Second, payments under clauses (A) and (B) of STEP FIVE of IC 12-15-15-1.5(b).
        (3) Third, Medicaid inpatient payments for safety-net hospitals and Medicaid outpatient payments for safety-net hospitals.
        (4) Fourth, payments under IC 12-15-15-1.1 and 12-15-15-1.3.
        (5) Fifth, payments under IC 12-15-19-8 for municipal disproportionate share hospitals.
        (6) Sixth, payments under IC 12-15-19-2.1 for disproportionate share hospitals.
        (7) Seventh, payments under clause (C) of STEP FIVE of IC 12-15-15-1.5(b).
    (b) For each state fiscal year ending after June 30, 2007, the office shall make the payments for the programs identified in IC 12-15-20-2(8)(G) in the order of priority that best utilizes available non-federal share, Medicaid supplemental payments, and Medicaid disproportionate share payments, and may change the order or priority at any time as necessary for the proper administration of one (1) or more of the payment programs listed in IC 12-15-20-2(8)(G).
SOURCE: IC 12-15-23-2; (11)PD4580.110. -->     SECTION 142. IC 12-15-23-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) If the office of the secretary of family and social services or administrator of the office determines that a provider has received payments the provider is not entitled to, the administrator may enter into an agreement with the provider stating that the amount of the overpayment shall be deducted from subsequent payments to the provider.
     (b) If the office of the secretary of family and social services or the administrator of the office and the provider cannot come to an agreement within sixty (60) days after it is determined that a provider has received payments that the provider is not entitled to, the administrator may recoup the amount of overpayment to the provider claimed by the state from subsequent payments to the

provider.

SOURCE: IC 12-15-35.5-3; (11)PD4580.111. -->     SECTION 143. IC 12-15-35.5-3, AS AMENDED BY P.L.1-2009, SECTION 104, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) Except as provided in subsection (b), the office may establish prior authorization requirements for drugs covered under a program described in section 1 of this chapter.
    (b) With the exception of prior authorization for "brand medically necessary" of a brand name drug with a generic equivalent in accordance with IC 16-42-22-10, the office may not require prior authorization for the following single source or brand name multisource drugs:
        (1) A drug that is classified as an antianxiety, antidepressant, or antipsychotic central nervous system drug in the most recent publication of Drug Facts and Comparisons (published by the Facts and Comparisons Division of J.B. Lippincott Company).
        (2) A drug that, according to:
            (A) the American Psychiatric Press Textbook of Psychopharmacy;
            (B) Current Clinical Strategies for Psychiatry;
            (C) Drug Facts and Comparisons; or
            (D) a publication with a focus and content similar to the publications described in clauses (A) through (C);
        is a cross-indicated drug for a central nervous system drug classification described in subdivision (1).
        (3) A drug that is:
            (A) classified in a central nervous system drug category or classification (according to Drug Facts and Comparisons) that is created after March 12, 2002; and
            (B) prescribed for the treatment of a mental illness (as defined in the most recent publication of the American Psychiatric Association's Diagnostic and Statistical Manual of Mental Disorders).
    (c) Except as provided under section 7 of this chapter, a recipient enrolled in a program described in section 1 of this chapter shall have unrestricted access to a drug described in subsection (b).
SOURCE: IC 12-15-45; (11)PD4580.112. -->     SECTION 144. IC 12-15-45 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 45. Medicaid Waivers
     Sec. 1. A used in this chapter, "commission" refers to the select joint commission on Medicaid oversight established by IC 2-5-26-3.
    Sec. 2. As used in this chapter, "division" refers to the division of rehabilitative services.
    Sec. 3. As used in this chapter, "waiver" refers to the federal Medicaid developmental disabilities home and community based services waiver program that is administered by the office and the division.

     Sec. 4. (a) Before July 1, 2012, the division shall report orally and in writing to the commission for review of a plan to reduce the aggregate and per capita cost of the waiver by implementing changes to the waiver that may include the following:
        (1) Calculating budget neutrality on an individual rather than an aggregate basis.
        (2) Instituting a family care program to provide recipients with another option for receiving services.
        (3) Evaluating the current system to determine whether a group home or a waiver home is the most appropriate use of resources for placement of the individual.
        (4) Evaluating alternative placements for high cost individuals to ensure individuals are served in the most integrated setting appropriate to the individual's needs and within the resources available to the state.
        (5) Migrating individuals from the waiver to a redesigned waiver that provides options to individuals for receiving services and supports appropriate to meet the individual's needs and that are cost effective and high quality and focus on social and health outcomes.
        (6) Requiring cost participation by a recipient whose family income exceeds five hundred percent (500%) of the federal income poverty level, factoring in medical expenses and personal care needs expenses of the recipient.

     (b) After the division makes the report required under subsection (a), the division may consult with the office and take any action necessary to carry out the requirements of this section, including applying to the federal Department of Health and Human Services for approval to amend the waiver.
SOURCE: IC 12-15-35.5-7; (11)PD4580.113. -->     SECTION 145. IC 12-15-35.5-7, AS AMENDED BY P.L.36-2009, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) Subject to subsections (b) and (c), the office may place limits on quantities dispensed or the frequency of refills for any covered drug as required by law or for the purpose of:
        (1) preventing fraud, abuse, or waste;
        (2) preventing overutilization, inappropriate utilization, or inappropriate prescription practices that are contrary to:
            (A) clinical quality and patient safety; and
            (B) accepted clinical practice for the diagnosis and treatment of mental illness and the considerations specified in subsection (h); or
        (3) implementing a disease management program.
    (b) Before implementing a limit described in subsection (a), the office shall:
        (1) consider quality of care and the best interests of Medicaid recipients;
        (2) seek the advice of the drug utilization review board, established by IC 12-15-35-19, at a public meeting of the board; and
        (3) publish a provider bulletin that complies with the requirements of IC 12-15-13-6.
    (c) Subject to subsection (d), the board may establish and the office may implement a restriction on a drug described in section 3(b) of this chapter if:
        (1) the board determines that data provided by the office indicates that a situation described in IC 12-15-35-28(a)(8)(A) through IC 12-15-35-28(a)(8)(K) requires an intervention to:
            (A) prevent fraud, abuse, or waste;
            (B) prevent overutilization, inappropriate utilization, or inappropriate prescription practices that are contrary to:
                (i) clinical quality and patient safety; and
                (ii) accepted clinical practice for the diagnosis and treatment of mental illness; or
            (C) implement a disease management program; and
        (2) the board approves and the office implements an educational intervention program for providers to address the situation.
    (d) A restriction established under subsection (c) for any drug described in section 3(b) of this chapter:
        (1) must comply with the procedures described in IC 12-15-35-35;
        (2) may include requiring a recipient to be assigned to one (1) practitioner and one (1) pharmacy provider for purposes of receiving mental health medications;
        (3) may not lessen the quality of care; and
        (4) must be in the best interest of Medicaid recipients.
    (e) Implementation of a restriction established under subsection (c) must provide for the dispensing of

a temporary supply of the drug for a prescription not to exceed seven (7) business days, if additional time is required to review the request for override of the restriction. This subsection does not apply if the federal Food and Drug Administration has issued a boxed warning under 21 CFR 201.57(e) that applies to the drug and is applicable to the patient.
    (f) Before implementing a restriction established under subsection (c), the office shall:
        (1) seek the advice of the mental health Medicaid quality advisory committee established by IC 12-15-35-51; and
        (2) publish a provider bulletin that complies with the requirements of IC 12-15-13-6.
    (g) Subsections (c) through (f):
        (1) apply only to drugs described in section 3(b) of this chapter; and
        (2) do not apply to a restriction on a drug described in section 3(b) of this chapter that was approved by the board and implemented by the office before April 1, 2003.
     (h) Restrictions referred to in subsection (c) to prevent overutilization, inappropriate utilization, or inappropriate prescription practices that are contrary to accepted clinical practices may include the implementation of the following:
        (1) Encouraging dosages that enhance recipient adherence to a drug regimen.
        (2) Encouraging monotherapy with limitations on the number of drugs from a specific drug class that a recipient may be taking at any one (1) time when there is no documentation of the severity and intensity of the target symptoms.
        (3) Limiting the total number of scheduled psychiatric medications that a recipient may be taking at any one (1) time, when such limit is based on:
            (A) established best practices; or
            (B) guidelines implemented by the division of mental health and addiction for mental health state operated facilities.
        (4) Encouraging, in accordance with IC 16-42-22-10, generic substitution when such a substitution would result in a net cost savings to the Medicaid program.
    (i) Restrictions under subsection (h) may be overridden through the prior authorization review process in cases in which the prescriber demonstrates medical necessity for the prescribed medication.

SOURCE: IC 12-17.6-3-2; (11)PD4580.114. -->     SECTION 146. IC 12-17.6-3-2, AS AMENDED BY P.L.117-2008, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) To be eligible to enroll in the program, a child must meet the following requirements:
        (1) The child is less than nineteen (19) years of age.
        (2) The child is a member of a family with an annual income of:
            (A) more than one hundred fifty percent (150%); and
            (B) not more than:
                (i) three two hundred fifty percent (300%); (250%); or
                (ii) the maximum percentage approved by the federal Centers for Medicare and Medicaid Services if the approved amount is less than three two hundred fifty percent (300%); (250%);
        of the federal income poverty level.
        (3) The child is a resident of Indiana.
        (4) The child meets all eligibility requirements under Title XXI of the federal Social Security Act.
        (5) The child's family agrees to pay any cost sharing amounts required by the office.
    (b) The office may adjust eligibility requirements based on available program resources under rules adopted under IC 4-22-2.
SOURCE: IC 12-24-1-3; (11)PD4580.115. -->     SECTION 147. IC 12-24-1-3, AS AMENDED BY P.L.141-2006, SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) The director of the division of mental health and addiction has administrative control of and responsibility for the following state institutions:
        (1) Evansville State Hospital.
        (2) Evansville State Psychiatric Treatment Center for Children.
        (3) Larue D. Carter Memorial Hospital.
        (4) Logansport State Hospital.
        (5) Madison State Hospital.
        (6) Richmond State Hospital.
        (7) Any other state owned or operated mental health institution.
    (b) Subject to the approval of the director of the budget agency and the governor, the director of the division of mental health and addiction may contract for the management and clinical operation of Larue D. Carter Memorial Hospital.
    (c) The following applies only to the institutions described in subsection (a)(1) and (a)(2):
        (1) Notwithstanding any other statute or policy, the division of mental health and addiction may not do the following after December 31, 2001, unless specifically authorized by a statute enacted by the general assembly:
            (A) Terminate, in whole or in part, normal patient care or other operations at the facility.
            (B) Reduce the staffing levels and classifications below those in effect at the facility on January 1, 2002.
            (C) Terminate the employment of an employee of the facility except in accordance with IC 4-15-2.
        (2) The division of mental health and addiction shall fill a vacancy created by a termination described in subdivision (1)(C) so that the staffing levels at the facility are not reduced below the staffing levels in effect on January 1, 2002.
        (3) Notwithstanding any other statute or policy, the division of mental health and addiction may not remove, transfer, or discharge any patient at the facility unless the removal, transfer, or discharge is in the patient's best interest and is approved by:
            (A) the patient or the patient's parent or guardian;
            (B) the individual's gatekeeper; and
            (C) the patient's attending physician.
    (d) (c) Before July 1, 2014, the Evansville State Psychiatric Treatment Center for Children shall remain independent of and the Evansville State Hospital and the southwestern Indiana community mental health center, and the Evansville State Psychiatric Treatment Center for Children shall continue to function autonomously may not be closed, merged into one (1) facility, or merged with another facility unless: a change in administration is specifically:
         (1) authorized by an enactment of the general assembly; or
        (2) recommended by the council established by section 3.5 of this chapter before January 1, 2014.

SOURCE: IC 12-24-1-3.5; (11)PD4580.116. -->     SECTION 148. IC 12-24-1-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3.5. (a) The council on Evansville state hospitals is established.
    (b) The council consists of the following members:
        (1) One (1) superior court judge having exclusive juvenile jurisdiction in Vanderburgh County, who shall act as chairperson of the council.
        (2) The director of the division of mental health and addiction or the director's designee.
        (3) Two (2) members of the senate, appointed by the president pro tempore of the senate. The members appointed under this subdivision:
            (A) may not be members of the same political party; and
            (B) must represent Evansville or a surrounding area.
        (4) Two (2) members of the house of representatives, appointed by the speaker of the house of representatives. The members appointed under this subdivision:
            (A) may not be members of the same political party; and
            (B) must represent Evansville or a surrounding area.
        (5) Two (2) mental health providers that provide mental health services in the Evansville area.
        (6) One (1) member who:
            (A) resides in the Evansville area; and
            (B) provides services in the community, including:
                (i) law enforcement services; or
                (ii) children's services.
        (7) The superintendent of the Evansville State Psychiatric Treatment Center for Children, or the superintendent's designee.
        (8) The superintendent of the Evansville State Hospital, or the superintendent's designee.
        (9) One (1) representative of a statewide mental health association.
        (10) One (1) parent of a child who has received services at the Evansville State Psychiatric Treatment Center for Children and who is not associated with the Evansville State Psychiatric Treatment Center for Children or the Evansville State Hospital except as a consumer.
    (c) The president pro tempore of the senate shall appoint the members under subsection (b)(1) and (b)(9) and one (1) member under subsection (b)(5). The speaker of the house of representatives shall appoint the members under subsection (b)(6) and (b)(10) and one (1) member under subsection (b)(5).
    (d) The council has the following duties:
        (1) Review the following:
            (A) The mental health and addiction services available to children in the Evansville area.
            (B) The quality of the care provided to patients in the facilities described in section 3(a)(1) and 3(a)(2) of this chapter.
            (C) The utilization of the facilities described in section 3(a)(1) and 3(a)(2) of this chapter and the cause for any underutilization.
        (2) Determine the viability and need for the facilities described in section 3(a)(1) and 3(a)(2) of this chapter.

         (3) Provide recommendations to:
            (A) the office of the secretary; and
            (B) the general assembly, in an electronic format under IC 5-14-6;
        concerning the council's findings under this subsection, including whether the council is making a recommendation under section 3 of this chapter.
    (e) The division of mental health and addiction shall staff the council.
    (f) The expenses of the council shall be paid by the division of mental health and addiction.
    (g) A member of the council is not entitled to a salary per diem or traveling expenses.
    (h) The members described in subsection (b)(7) and (b)(8) shall serve as nonvoting members. The affirmative votes of a majority of the voting members of the council are required for the council to take action on any recommendation.

     (i) This section expires December 31, 2013.
SOURCE: IC 12-28-5-10; (11)PD4580.117. -->     SECTION 149. IC 12-28-5-10, AS AMENDED BY P.L.99-2007, SECTION 147, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. In conjunction with the The division of disability and rehabilitative services, the council shall do the following:
        (1) Determine the current and projected needs of each geographic area of Indiana for residential services for individuals with a developmental disability and, beginning July 1, 2012, annually report the findings to the division of disability and rehabilitative services advisory council established by IC 12-9-4-2.
        (2) Determine how the provision of developmental or vocational services for residents in these geographic areas affects the availability of developmental or vocational services to individuals with a developmental disability living in their own homes and, beginning July 1, 2012, report the findings to the division of disability and rehabilitative services advisory council established by IC 12-9-4-2.
        (3) Develop standards for licensure of supervised group living facilities regarding the following:
            (A) A sanitary and safe environment for residents and employees.
            (B) Classification of supervised group living facilities.
            (C) Any other matters that will ensure that the residents will receive a residential environment.
        (4) Develop standards for the approval of entities providing supported living services.
        (5) Recommend social and habilitation programs to the Indiana health facilities council for individuals with a developmental disability who reside in health facilities licensed under IC 16-28.
        (6) Develop and update semiannually a report that identifies the numbers of individuals with a developmental disability who live in health facilities licensed under IC 16-28. The Indiana health facilities council shall assist in developing and updating this report.
SOURCE: IC 12-28-5-11; (11)PD4580.118. -->     SECTION 150. IC 12-28-5-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. (a) A supervised group living facility must have a license or provisional license issued under this chapter to operate.
    (b) An entity that provides supported living services must be approved by the council division under this chapter to operate.
SOURCE: IC 12-28-5-12; (11)PD4580.119. -->     SECTION 151. IC 12-28-5-12, AS AMENDED BY P.L.99-2007, SECTION 148, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) The council division may license only those supervised group living facilities that:
        (1) meet the standards established under section 10 of this chapter; and
        (2) are necessary to provide adequate services to individuals with a developmental disability in that geographic area.
    (b) A supervised group living facility described in subsection (c) may locate in only one (1) of the following counties:
        (1) A county having a population of more than twenty-seven thousand (27,000) but less than twenty-seven thousand two hundred (27,200).
        (2) A county having a population of more than one hundred seventy thousand (170,000) but less than one hundred eighty thousand (180,000).
        (3) A county having a population of more than fifty thousand (50,000) but less than fifty-five thousand (55,000).
    (c) (b) Notwithstanding 431 IAC 1.1-3-7(c) and 431 IAC 1.1-3-7(d), the council division shall license one (1) supervised group living facility that is located less than one thousand (1,000) feet from another supervised group living facility or a sheltered workshop under the following conditions:
        (1) Both of the supervised group living facilities meet all standards for licensure as provided in

section 10(3) of this chapter.
        (2) Both of the supervised group living facilities are built on land that is owned by one (1) private entity.
        (3) The community formed by the supervised group living facilities provides job opportunities for residents of the supervised group living facilities, as appropriate.
    (d) (c) The council division may approve an entity to provide supported living services only if the entity meets the standards established under section 10 of this chapter.

SOURCE: IC 12-28-5-13; (11)PD4580.120. -->     SECTION 152. IC 12-28-5-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13. The council division may revoke:
        (1) the license of a supervised group living facility; or
        (2) the approval of an entity that provides supported living services;
that no longer meets the standards established under section 10 of this chapter after following the procedures prescribed by IC 4-21.5-3. If a hearing is provided for or authorized to be held by the council, division, the council division may designate a person as its agent or representative to conduct a hearing. The agent or representative shall conduct the hearing under IC 4-21.5-3.
SOURCE: IC 12-28-5-14; (11)PD4580.121. -->     SECTION 153. IC 12-28-5-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 14. (a) The council division may issue a provisional license to a facility that does not qualify for a license under section 12 of this chapter but that provides satisfactory evidence that the facility will qualify within a period prescribed by the council. division. The period may not exceed six (6) months.
    (b) The council division may issue provisional approval to an entity providing supported living services that does not qualify for approval under section 12 of this chapter but that provides satisfactory evidence that the entity will qualify within a period prescribed by the council. division. The period may not exceed six (6) months.
SOURCE: IC 12-28-5-19; (11)PD4580.122. -->     SECTION 154. IC 12-28-5-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 19. (a) The council division may adopt rules under IC 4-22-2 to implement this chapter.
     (b) After June 30, 2011, rules of the former community residential facilities council (repealed) are considered rules of the division.
    SECTION 155. IC 16-18-2-67 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 67. (a) "Comprehensive care bed", for purposes of IC 16-28-16, has the meaning set forth in IC 16-28-16-2.
    (b)
"Comprehensive care bed", for purposes of IC 16-29-2, has the meaning set forth in IC 16-29-2-1.
SOURCE: IC 16-18-2-69.3; (11)PD4580.125. -->     SECTION 156. IC 16-18-2-69.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 69.3. "Continuing care retirement community", for purposes of IC 16-28-15, has the meaning set forth in IC 16-28-15-2.
SOURCE: IC 16-18-2-167; (11)PD4580.126. -->     SECTION 157. IC 16-18-2-167, AS AMENDED BY P.L.99-2007, SECTION 153, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 167. (a) "Health facility":
         (1) except for purposes of IC 16-28-15, means a building, a structure, an institution, or other place for the reception, accommodation, board, care, or treatment extending beyond a continuous twenty-four (24) hour period in a week of more than four (4) individuals who need or desire such services because of physical or mental illness, infirmity, or impairment; and
        (2) for purposes of IC 16-28-15, has the meaning set forth in IC 16-28-15-3.

    (b) The term does not include the premises used for the reception, accommodation, board, care, or treatment in a household or family, for compensation, of a person related by blood to the head of the household or family (or to the spouse of the head of the household or family) within the degree of consanguinity of first cousins.
    (c) The term does not include any of the following:
        (1) Hotels, motels, or mobile homes when used as such.
        (2) Hospitals or mental hospitals, except for that part of a hospital that provides long term care services and functions as a health facility, in which case that part of the hospital is licensed under IC 16-21-2, but in all other respects is subject to IC 16-28.
        (3) Hospices that furnish inpatient care and are licensed under IC 16-25-3.
        (4) Institutions operated by the federal government.
        (5) Foster family homes or day care centers.
        (6) Schools for individuals who are deaf or blind.
        (7) Day schools for individuals with mental retardation.
        (8) Day care centers.
        (9) Children's homes and child placement agencies.
        (10) Offices of practitioners of the healing arts.
        (11) Any institution in which health care services and private duty nursing services are provided that is listed and certified by the Commission for Accreditation of Christian Science Nursing Organizations/Facilities, Inc.
        (12) Industrial clinics providing only emergency medical services or first aid for employees.
        (13) A residential facility (as defined in IC 12-7-2-165).
        (14) Maternity homes.
        (15) Offices of Christian Science practitioners.
SOURCE: IC 16-18-2-253.7; (11)PD4580.127. -->     SECTION 158. IC 16-18-2-253.7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 253.7. "Nursing facility", for purposes of IC 16-28-15, has the meaning set forth in IC 16-28-15-4.
SOURCE: IC 16-18-2-254.5; (11)PD4580.128. -->     SECTION 159. IC 16-18-2-254.5, AS AMENDED BY P.L.38-2010, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 254.5. (a) "Office", for purposes of IC 16-19-13, refers to the office of women's health established by IC 16-19-13-2.
    (b) "Office", for purposes of IC 16-19-14, refers to the office of minority health established by IC 16-19-14-4.
     (c) "Office", for purposes of IC 16-28-15, has the meaning set forth in IC 16-28-15-5.
SOURCE: IC 16-18-2-316.5; (11)PD4580.129. -->     SECTION 160. IC 16-18-2-316.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 316.5. "Replacement bed", for purposes of IC 16-28-16, has the meaning set forth in IC 16-28-16-3.
SOURCE: IC 16-18-2-331.9; (11)PD4580.130. -->     SECTION 161. IC 16-18-2-331.9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 331.9. "Small house health facility" means a freestanding, self-contained comprehensive care health facility that has the following characteristics:
        (1) Has at least ten (10) and not more than twelve (12) private resident rooms in one (1) structure that has the appearance of a residential dwelling that is not more than eight thousand (8,000) square feet and includes the following:
            (A) A fully accessible private bathroom for each resident room that includes a toilet, sink, and roll in shower with a seat.
            (B) A common area living room seating area.
            (C) An open full-sized kitchen where one hundred percent (100%) of the resident's meals are prepared.
            (D) A dining room that has one (1) table large enough to seat each resident of the dwelling

and at least two (2) staff members.
            (E) Access to natural light in each habitable space.
        (2) Does not include the following characteristics of an institutional setting:
            (A) A nurse's station.
            (B) Room numbering or other signs that would not be found in a residential setting.
        (3) Provides self-directed care.

SOURCE: IC 16-28-15; (11)PD4580.131. -->     SECTION 162. IC 16-28-15 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 15. Health Facility Quality Assessment Fee
    Sec. 1. The imposition of a quality assessment fee under this chapter occurs after June 30, 2011.
    Sec. 2. As used in this chapter, "continuing care retirement community" means a health care facility that:
        (1) provides independent living services and health facility services in a campus setting with common areas;
        (2) holds continuing care agreements with at least twenty-five percent (25%) of its residents (as defined in IC 23-2-4-1);
        (3) uses the money from the agreements described in subdivision (2) to provide services to the resident before the resident may be eligible for Medicaid under IC 12-15; and
        (4) meets the requirements of IC 23-2-4.
    Sec. 3. As used in this chapter, "health facility" refers to a health facility that is licensed under this article as a comprehensive care facility.
    Sec. 4. As used in this chapter, "nursing facility" means a health facility that is certified for participation in the federal Medicaid program under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
    Sec. 5. As used in this chapter, "office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.
    Sec. 6. (a) Effective July 1, 2011, the office shall collect a quality assessment fee from each health facility.
    (b) The quality assessment fee must apply to all non-Medicare patient days of the health facility. The office shall determine the quality assessment rate per non-Medicare patient day in a manner that collects the maximum amount permitted by federal law as of July 1, 2011, and October 1, 2011, based on the latest nursing facility financial reports and nursing facility quality assessment data collection forms as of July 28, 2010.
    (c) The office shall offset the collection of the assessment fee for a health facility:
        (1) against a Medicaid payment to the health facility;
        (2) against a Medicaid payment to another health facility that is related to the health facility through common ownership or control; or
        (3) in another manner determined by the office.
    Sec. 7. The office shall implement the waiver approved by the United States Centers for Medicare and Medicaid Services under 42 CFR 433.68(e)(2) that provides for the following:
        (1) Nonuniform quality assessment fee rates.
        (2) An exemption from collection of a quality assessment fee from the following:
            (A) A continuing care retirement community as follows:
                (i) A continuing care retirement community that was registered with the securities commissioner as a continuing care retirement community on January 1, 2007, is not required to meet the definition of a continuing care retirement community in section 2 of

this chapter.
                (ii) A continuing care retirement community that, for the period January 1, 2007, through June 30, 2009, operated independent living units, at least twenty-five percent (25%) of which are provided under contracts that require the payment of a minimum entrance fee of at least twenty-five thousand dollars ($25,000).
                (iii) An organization registered under IC 23-2-4 before July 1, 2009, that provides housing in an independent living unit for a religious order.
                (iv) A continuing care retirement community that meets the definition set forth in section 2 of this chapter.
            (B) A hospital based health facility.
            (C) The Indiana Veterans' Home.
Any revision to the state plan amendment or waiver request under this section is subject to and must comply with this chapter.
    Sec. 8. (a) The money collected from the quality assessment fee during the first year following the enactment may be used only as follows:
        (1) Sixty-seven and one-tenth percent (67.1%) to pay the state's share of costs for Medicaid nursing facility services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
        (2) Twenty-three and eight-tenths percent (23.8%) to pay the state's share of costs for other Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
        (3) Nine and one-tenth percent (9.1%) to pay prior year state nursing facility expenditures.

     (b) The money collected from the quality assessment fee during the second year following enactment may be used only as follows:
        (1) Sixty-six and five-tenths percent (66.5%) to pay the state's share of costs for Medicaid nursing facility services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).

        (2) Twenty-nine and four-tenths percent (29.4%) to pay the state's share of costs for other Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
        (3) Four and one-tenth percent (4.1%) to pay prior year state nursing facility expenditures.
     (c) The money collected from the quality assessment fee after the second year following enactment may be used only as follows:
        (1) Seventy and six-tenths percent (70.6%) to pay the state's share of the costs for Medicaid nursing facility services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
        (2) Twenty-nine and four-tenths percent (29.4%) to pay the state's share of costs for other Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
    (d) Any increase in reimbursement for Medicaid nursing facility services resulting from maximizing the quality assessment rate under section 6(b) of this chapter shall be directed exclusively to initiatives determined by the office to promote and enhance improvements in quality of care to nursing facility residents.
    (e) The office may establish a method to allow a health facility to enter into an agreement to pay the quality assessment fee collected under this chapter under an installment plan.
    Sec. 9. If federal financial participation becomes unavailable to match money collected from the

quality assessment fees for the purpose of enhancing reimbursement to nursing facilities for Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.), the office shall cease collection of the quality assessment fee under this chapter.
     Sec. 10. The office shall adopt rules under IC 4-22-2 necessary to implement this chapter.
     Sec. 11. (a) If a health facility fails to pay the quality assessment fee under this chapter not later than ten (10) days after the date the payment is due, the health facility shall pay interest on the quality assessment fee at the same rate as determined under IC 12-15-21-3(6)(A).
     (b) The office shall report to the state department each nursing facility and each health facility that either:
        (1) fails to submit patient day information requested by the office to calculate the quality assessment fee; or
        (2) fails to pay the quality assessment fee under this chapter;
not later than one hundred twenty (120) days after the patient day information is requested or payment of the quality assessment fee is due.

     Sec. 12. (a) The state department shall do the following:
        (1) Notify each nursing facility and each health facility reported under section 11 of this chapter that the nursing facility's license or health facility's license under IC 16-28 will be revoked if the patient day information is not submitted or the quality assessment fee is not paid.
        (2) Revoke the nursing facility's license or health facility's license under IC 16-28 if the nursing facility or the health facility fails to submit the patient day information or fails to pay the quality assessment fee.

     (b) An action taken under subsection (a)(2) is governed by:
        (1) IC 4-21.5-3-8; or
        (2) IC 4-21.5-4.

     Sec. 13. The select joint commission on Medicaid oversight established by IC 2-5-26-3 shall review the implementation of this chapter.
     Sec. 14. This chapter expires June 30, 2014.

SOURCE: IC 16-28-16; (11)PD4580.132. -->     SECTION 163. IC 16-28-16 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 16. Moratorium on Medicaid Certification of Comprehensive Care Beds
    Sec. 1. This chapter does not apply to the conversion of acute care beds to comprehensive care beds under IC 16-29-3.

     Sec. 2. As used in this chapter, "comprehensive care bed" means a bed that:
        (1) is licensed or is to be licensed under IC 16-28-2;
        (2) functions as a bed licensed under IC 16-28-2; or
        (3) is subject to this article.

The term does not include a comprehensive care bed that will be used solely to provide specialized services and that is subject to IC 16-29.
     Sec. 3. As used in this chapter, "replacement bed" means a comprehensive care bed that is relocated to a health facility that is licensed or is to be licensed under this article. This term includes comprehensive care beds that are certified for participation in:
        (1) the state Medicaid program; or
        (2) both the state Medicaid program and federal Medicare program.

     Sec. 4. (a) Except as provided in subsection (b), the state department may not approve the certification of new or converted comprehensive care beds for participation in the state Medicaid program unless the statewide comprehensive care bed occupancy rate is more than ninety-five

percent (95%), as calculated annually on January 1 by the state department of health.
     (b) This section does not apply to the following:
        (1) A comprehensive care health facility that:
            (A) seeks a replacement bed exception;
            (B)
is licensed or is to be licensed under this article;
            (C) applies to the state department of health to certify a comprehensive care bed for participation in the Medicaid program if the comprehensive care bed for which the health facility is seeking certification is a replacement bed for an existing comprehensive care bed;

            (D) applies to the division of aging in the manner:
                (i) described in subsection (c); and
                (ii) prescribed by the division; and
            (E) meets the licensure, survey, and certification requirements of this article.
        (2) A small house health facility approved under section 6 of this chapter.

     (c) An application made under subsection (b)(1) for a replacement bed exception must include the following:
         (1) The total number and identification of the existing comprehensive care beds that the applicant requests be replaced by health facility location and by provider.
         (2) If the replacement bed is being transferred to a different comprehensive care health facility with the same ownership, a provision that provides the division of aging written verification from the health facility holding the comprehensive care bed certification that the health facility has agreed to transfer the beds to the applicant health facility.
        (3) If the replacement bed is being transferred to a different comprehensive care health facility under different ownership, a provision that provides the division of aging a copy of the complete agreement between the comprehensive care health facility transferring the beds and the applicant comprehensive care health facility.
        (4) Any other information requested by the division of aging necessary to evaluate the transaction.

     Sec. 5. Except in the case of an emergency or a disaster, Medicaid certification of an existing comprehensive care bed may not be transferred to a new location until the new facility is seeking certification of the bed.
    Sec. 6. (a) A person planning to construct a small house health facility shall apply to the state department for a license under this article.
    (b) An applicant under this section, including an entity related to the applicant through common ownership or control, may apply to the state department for Medicaid certification of not more than fifty (50) comprehensive care beds for small house health facilities per year.
    (c) The state department may not approve certification of more than one hundred (100) new comprehensive care beds designated for small house health facilities per year.
    (d) The state department shall approve an application for Medicaid certification for a small house health facility:
        (1) in the order of the completed application date; and
        (2) if the applicant meets the definition of a small house health facility and the requirements of this section.
    (e) A person that fails to complete construction and begin operation of a small house comprehensive care health facility within twelve (12) months after the state department's approval of the application forfeits the person's right to the Medicaid certified comprehensive care beds approved by the state department if:


        (1) another person has applied to the state department for approval of certified comprehensive care beds for participation in the state Medicaid program at least one (1) small house health facility; and
        (2) the person's application was denied for the sole reason that the maximum number of Medicaid certified comprehensive care beds specified in subsection (c) had been approved for small house health facilities.
    Sec. 7. This chapter expires June 30, 2014.

SOURCE: IC 16-29-6; (11)PD4580.133. -->     SECTION 164. IC 16-29-6 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 6. Comprehensive Care Health Facilities and Medicaid Services
    Sec. 1. Except as provided by this chapter, this chapter applies to a health facility:
        (1) that is licensed or will be licensed under IC 16-28 as a comprehensive care facility; and
        (2) for which construction began after June 30, 2011.
    Sec. 2. This chapter does not apply to the following:
        (1) A small house health facility.
        (2) A continuing care retirement community (as defined in IC 16-28-15-2) that:
            (A) seeks to add licensed beds to an existing licensed facility; or
            (B) has executed at least fifty percent (50%) of the facility's continuing care agreements with individuals before December 31, 2011.
    Sec. 3. As used in this chapter, "comprehensive care bed" has the meaning set forth in IC 16-28-16-2.
    Sec. 4. As used in this chapter, "new comprehensive care facility" refers to a health facility.
        (1) for which construction began after June 30, 2011; and
        (2) that is licensed or will be licensed under IC 16-28 as a comprehensive care facility
    Sec. 5. As used in this chapter, "replacement bed" has the meaning set forth in IC 16-28-16-3.
    Sec. 6. Subject to section 7 of this chapter, a comprehensive care bed in a new comprehensive care facility may not be certified for participation in the state Medicaid program before July 1, 2016.
    Sec. 7. (a) Section 6 of this chapter does not apply to a replacement bed if the new comprehensive care facility:
        (1) seeks a replacement bed exception;
        (2) is licensed or is to be licensed under this article;
        (3) applies to the state department to certify a comprehensive care bed for participation in the Medicaid program if the comprehensive care bed for which the health facility is seeking certification is a replacement bed for an existing comprehensive care bed;
        (4) applies to the division of aging in the manner:
            (A) described in subsection (b); and
            (B) prescribed by the division; and
        (5) meets the licensure, survey, and certification requirements of IC 16-28.
    (b) An application made under subsection (a) for a replacement bed exception must include the following:
        (1) The total number and identification of the existing comprehensive care beds that the applicant requests be replaced by health facility location and by provider.
        (2) If the replacement bed is being transferred to a different comprehensive care health facility with the same ownership, a provision that provides the division of aging written verification from the health facility holding the comprehensive care bed certification that the health facility has agreed to transfer the beds to the applicant health facility.
        (3) If the replacement bed is being transferred to a different comprehensive care health facility under different ownership, a provision that provides the division of aging a copy of the complete agreement between the comprehensive care health facility transferring the beds and the applicant comprehensive care health facility.
        (4) Any other information requested by the division of aging necessary to evaluate the transaction.
    Sec. 8. Not later than October 31, 2013, the office of the secretary of family and social services shall report to the select joint commission on Medicaid oversight established by IC 2-5-26-3 with a five (5) year plan to steadily reduce the number of Medicaid certified comprehensive care beds and health facility patients.
    Sec. 9. This chapter expires July 1, 2016.

SOURCE: IC 16-41-17-2; (11)PD4580.134. -->     SECTION 165. IC 16-41-17-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) Subject to subsection (c), (d), every infant shall be given examinations at the earliest feasible time for the detection of the following disorders:
        (1) Phenylketonuria.
        (2) Hypothyroidism.
        (3) Hemoglobinopathies, including sickle cell anemia.
        (4) Galactosemia.
        (5) Maple Syrup urine disease.
        (6) Homocystinuria.
        (7) Inborn errors of metabolism that result in mental retardation and that are designated by the state department.
        (8) Congenital adrenal hyperplasia.
        (9) Biotinidase deficiency.
        (10) Disorders detected by tandem mass spectrometry or other technologies with the same or greater detection capabilities as tandem mass spectrometry, if the state department determines that the technology is available for use by a designated laboratory under section 7 of this chapter.
    (b) Subject to subsection (c), (d), every infant shall be given a physiologic hearing screening examination at the earliest feasible time for the detection of hearing impairments.
     (c) Beginning January 1, 2012, and subject to subsection (d), every infant shall be given a pulse oximetry screening examination at the earliest feasible time for the detection of low oxygen levels. Section 10(a)(2) of this chapter does not apply to this subsection.
    (c) (d) If a parent of an infant objects in writing, for reasons pertaining to religious beliefs only, the infant is exempt from the examinations required by this chapter.
SOURCE: IC 16-47-1-5; (11)PD4580.135. -->     SECTION 166. IC 16-47-1-5, AS AMENDED BY P.L.173-2007, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5. (a) The department following shall participate in the program:
         (1) The department, for a health benefit plan:
            (1) (A) described in section 2(1), 2(2), or 2(3) of this chapter; and
            (2) (B) that provides coverage for prescription drugs.
         (2) After June 30, 2011, a state educational institution, for a health benefit plan:
            (A) described in section 2(4) of this chapter; and
            (B) that provides coverage for prescription drugs;
        unless the budget agency determines that the state educational institution's participation in the program would not result in an overall financial benefit to the state educational institution. The

budget agency may delay compliance with this subdivision to a date after July 1, 2011, that is determined by the budget agency to allow for the orderly transition from another program.
    (b) The following may participate in the program:
        (1) A state agency other than the department that:
            (A) purchases prescription drugs; or
            (B) arranges for the payment of the cost of prescription drugs.
        (2) A local unit (as defined in IC 5-10-8-1).
        (3) The Indiana comprehensive health insurance association established under IC 27-8-10.
        (4) A state educational institution for a health benefit plan:
            (A) described in section 2(4) of this chapter; and
            (B) that provides coverage for prescription drugs.
    (c) The state Medicaid program may not participate in the program under this chapter.

SOURCE: IC 20-20-5.5-3; (11)PD4580.136. -->     SECTION 167. IC 20-20-5.5-3, AS ADDED BY HEA 1429-2011, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011] Sec. 3. (a) The state superintendent shall notify the governing bodies of each school corporation, charter school, and accredited nonpublic school immediately of:
        (1) the initial publication and annual update on the department's Internet web site of the report described in section 2(b) of this chapter, including the Internet web site address where the report is published; and
        (2) updates of the following types of information in the report described in section 2(b) of this chapter:
            (A) The addition of materials.
            (B) The removal of materials.
            (C) Changes in the per unit price of curricular materials that exceed five percent (5%).
    (b) A notification under this section must state that:
        (1) the reviews of curricular materials included in the report described in section 2(b) of this chapter are departmental reviews only; and
        (2) each governing body has authority to adopt textbooks for a school corporation.
SOURCE: IC 20-21-4-3; (11)PD4580.137. -->     SECTION 168. IC 20-21-4-3, AS ADDED BY P.L.1-2005, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The board shall prescribe, subject to the approval of the state personnel department and the budget agency, a salary schedule for the school, using a daily rate of pay for each teacher that must be equal to that of the largest school corporation in the county in which the school is located.
    (b) The board shall prescribe the terms of the annual contract awarded to licensed teachers qualifying for payment under the salary schedule as described in subsection (a).
    (c) The hours of work for all teachers shall be set in accordance with IC 4-15-2.
     (d) Each teacher accrues vacation leave and holidays in accordance with the vacation leave and holiday policy of the largest school corporation in the county in which the school is located. A teacher is not eligible for additional vacation leave or holidays set for state employees under IC 1-1-9 or IC 4-15 or rules adopted to implement these statutes.
SOURCE: IC 20-22-4-3; (11)PD4580.138. -->     SECTION 169. IC 20-22-4-3, AS ADDED BY P.L.1-2005, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The board shall prescribe, subject to the approval of the state personnel department and the budget agency, a salary schedule for the school, using a daily rate of pay for each teacher, that must be equal to that of the largest school corporation in the county in which the school is located.
    (b) The board shall prescribe the terms of the annual contract awarded to licensed teachers qualifying for payment under the salary schedule as described in subsection (a).
    (c) The hours of work for all teachers shall be set in accordance with IC 4-15-2.
     (d) Each teacher accrues vacation leave and holidays in accordance with the vacation leave and holiday policy of the largest school corporation in the county in which the school is located. A teacher is not eligible for additional vacation leave or holidays set for state employees under IC 1-1-9 or IC 4-15 or rules adopted to implement these statutes.
SOURCE: IC 20-24-7-6.5; (11)PD4580.139. -->     SECTION 170. IC 20-24-7-6.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6.5. (a) Subject to subsection (b) and with the approval of a majority of the members of the governing body, a school corporation may distribute any part of the following to a conversion school sponsored by the school corporation in the amount and under the terms and conditions adopted by a majority of the members of the governing body:
        (1) State tuition support and other state distributions to the school corporation.
        (2) Any other amount deposited in the school corporation's general fund.
    (b) The total amount that may be transferred under subsection (a) in a calendar year to a particular conversion charter school may not exceed the result determined under STEP FOUR of the following formula:
        STEP ONE: Determine the result of:
            (A) the amount of state tuition support that the school corporation is eligible to receive in the calendar year; divided by
            (B) the current ADM of the school corporation for the calendar year.
        STEP TWO: Determine the result of:
            (A) the amount of state tuition support that the conversion charter school is eligible to receive in the calendar year; divided by
            (B) the current ADM of the conversion charter school for the calendar year.
        STEP THREE: Determine the greater of zero (0) or the result of:
            (A) the STEP ONE amount; minus
            (B) the STEP TWO amount.
        STEP FOUR: Determine the result of:
            (A) the STEP THREE amount; multiplied by
            (B) the current ADM of the conversion charter school for the calendar year
.
SOURCE: IC 20-24-7-13; (11)PD4580.140. -->     SECTION 171. IC 20-24-7-13, AS AMENDED BY HEA 1002, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13. (a) As used in this section, "virtual charter school" means any charter school, including a conversion charter school, that provides for the delivery of more than fifty percent (50%) of instruction to students through:
        (1) virtual distance learning;
        (2) online technologies; or
        (3) computer based instruction.
    (b) Beginning with the 2011-2012 school year, a virtual charter school may apply for sponsorship with any statewide sponsor in accordance with the sponsor's guidelines.
    (c) Before January 1, 2012, a virtual charter school is entitled to receive funding from the state in an amount equal to the sum of:
        (1) the product of:
            (A) the number of students included in the virtual charter school's ADM; multiplied by
            (B) eighty-five eighty percent (85%) (80%) of the school's foundation amount determined under

IC 20-43-5-4; plus
        (2) the total of any special education grants under IC 20-43-7 to which the virtual charter school is entitled. statewide average basic tuition support.
     (d) After December 31, 2011, a virtual charter school is entitled to receive funding from the state in an amount equal to the sum of:
        (1) the product of:
            (A) the number of students included in the virtual charter school's ADM; multiplied by
            (B) eighty-seven and five-tenths percent (87.5%) of the school's foundation amount determined under IC 20-43-5-4; plus
        (2) the total of any special education grants under IC 20-43-7 to which the virtual charter school is entitled.
After December 31, 2011,
a virtual charter school is entitled to receive special education grants under IC 20-43-7 calculated in the same manner as special education grants are calculated for other school corporations.
    (d) The department shall adopt rules under IC 4-22-2 to govern the operation of virtual charter schools.
    (e) Beginning in 2009, the department shall before December 1 of each year submit an annual report to the budget committee concerning the program under this section.
    (f) This subsection does not apply to students who were enrolled in a virtual charter school during the 2010-2011 school year. Each school year, at least sixty percent (60%) of the students who are enrolled in virtual charter schools under this section for the first time must have been included in the state's ADM count for the previous school year.

SOURCE: IC 20-24-7.5; (11)PD4580.141. -->     SECTION 172. IC 20-24-7.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]:
     Chapter 7.5. New Charter School Startup Grant
    Sec. 1. This chapter applies to a charter school that initially is established and begins enrolling eligible pupils after June 30, 2011.
    Sec. 2. This chapter does not apply to a virtual charter school.
    Sec. 3. A charter school is eligible for a one (1) time grant under this chapter in the first calendar year immediately following the calendar year in which the charter school is established and begins enrolling eligible pupils.
    Sec. 4. A charter school's new charter school startup grant is equal to the result of:
        (1) the amount of basic tuition support determined for the charter school under IC 20-43-6-3 for the calendar year that immediately follows the calendar year in which the charter school is established and begins enrolling eligible pupils; divided by
        (2) three (3).

The grant shall be paid from the charter school facilities assistance fund established by IC 20-24-12.
SOURCE: IC 20-26-11-13; (11)PD4580.142. -->     SECTION 173. IC 20-26-11-13, AS AMENDED BY P.L.146-2008, SECTION 471, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 13. (a) As used in this section, the following terms have the following meanings:
        (1) "Class of school" refers to a classification of each school or program in the transferee corporation by the grades or special programs taught at the school. Generally, these classifications are denominated as kindergarten, elementary school, middle school or junior high school, high school, and special schools or classes, such as schools or classes for special education, career and technical education, or career education.
        (2) "Special equipment" means equipment that during a school year:
            (A) is used only when a child with disabilities is attending school;
            (B) is not used to transport a child to or from a place where the child is attending school;
            (C) is necessary for the education of each child with disabilities that uses the equipment, as determined under the individualized education program for the child; and
            (D) is not used for or by any child who is not a child with disabilities.
        (3) "Student enrollment" means the following:
            (A) The total number of students in kindergarten through grade 12 who are enrolled in a transferee school corporation on a date determined by the state board.
            (B) The total number of students enrolled in a class of school in a transferee school corporation on a date determined by the state board.
        However, a kindergarten student shall be counted under clauses (A) and (B) as one-half (1/2) student. The state board may select a different date for counts under this subdivision. However, the same date shall be used for all school corporations making a count for the same class of school.
    (b) Each transferee corporation is entitled to receive for each school year on account of each transferred student, except a student transferred under section 6 of this chapter, transfer tuition from the transferor corporation or the state as provided in this chapter. Transfer tuition equals the amount determined under STEP THREE of the following formula:
        STEP ONE: Allocate to each transfer student the capital expenditures for any special equipment used by the transfer student and a proportionate share of the operating costs incurred by the transferee school for the class of school where the transfer student is enrolled.
        STEP TWO: If the transferee school included the transfer student in the transferee school's ADM for a school year, allocate to the transfer student a proportionate share of the following general fund revenues of the transferee school for, except as provided in clause (C), the calendar year in which the school year ends:
            (A) State tuition support distributions.
            (B) Property tax levies under IC 20-45-7 and IC 20-45-8.
            (C) The sum of the following excise tax revenue (as defined in IC 20-43-1-12) received for deposit in the calendar year in which the school year begins:
                 (i) Financial institution excise tax revenue (IC 6-5.5).
                (ii) Motor vehicle excise taxes (IC 6-6-5).
                (iii) Commercial vehicle excise taxes (IC 6-6-5.5).
                (iv) Boat excise tax (IC 6-6-11).
                (v) Aircraft license excise tax (IC 6-6-6.5).

            (D) Allocations to the transferee school under IC 6-3.5.
        STEP THREE: Determine the greater of:
            (A) zero (0); or
            (B) the result of subtracting the STEP TWO amount from the STEP ONE amount.
If a child is placed in an institution or facility in Indiana by or with the approval of the department of child services, the institution or facility shall charge the department of child services for the use of the space within the institution or facility (commonly called capital costs) that is used to provide educational services to the child based upon a prorated per student cost.
    (c) Operating costs shall be determined for each class of school where a transfer student is enrolled. The operating cost for each class of school is based on the total expenditures of the transferee corporation for the class of school from its general fund expenditures as specified in the classified budget forms prescribed by the state board of accounts. This calculation excludes:
        (1) capital outlay;
        (2) debt service;
        (3) costs of transportation;
        (4) salaries of board members;
        (5) contracted service for legal expenses; and
        (6) any expenditure that is made from extracurricular account receipts;
for the school year.
    (d) The capital cost of special equipment for a school year is equal to:
        (1) the cost of the special equipment; divided by
        (2) the product of:
            (A) the useful life of the special equipment, as determined under the rules adopted by the state board; multiplied by
            (B) the number of students using the special equipment during at least part of the school year.
    (e) When an item of expense or cost described in subsection (c) cannot be allocated to a class of school, it shall be prorated to all classes of schools on the basis of the student enrollment of each class in the transferee corporation compared with the total student enrollment in the school corporation.
    (f) Operating costs shall be allocated to a transfer student for each school year by dividing:
        (1) the transferee school corporation's operating costs for the class of school in which the transfer student is enrolled; by
        (2) the student enrollment of the class of school in which the transfer student is enrolled.
When a transferred student is enrolled in a transferee corporation for less than the full school year of student attendance, the transfer tuition shall be calculated by the part of the school year for which the transferred student is enrolled. A school year of student attendance consists of the number of days school is in session for student attendance. A student, regardless of the student's attendance, is enrolled in a transferee school unless the student is no longer entitled to be transferred because of a change of residence, the student has been excluded or expelled from school for the balance of the school year or for an indefinite period, or the student has been confirmed to have withdrawn from school. The transferor and the transferee corporation may enter into written agreements concerning the amount of transfer tuition due in any school year. If an agreement cannot be reached, the amount shall be determined by the state board, and costs may be established, when in dispute, by the state board of accounts.
    (g) A transferee school shall allocate revenues described in subsection (b) STEP TWO to a transfer student by dividing:
        (1) the total amount of revenues received; by
        (2) the ADM of the transferee school for the school year that ends in the calendar year in which the revenues are received.
However, for state tuition support distributions or any other state distribution computed using less than the total ADM of the transferee school, the transferee school shall allocate the revenues to the transfer student by dividing the revenues that the transferee school is eligible to receive in a calendar year by the student count used to compute the state distribution.
    (h) Instead of the payments provided in subsection (b), the transferor corporation or state owing transfer tuition may enter into a long term contract with the transferee corporation governing the transfer of students. The contract may:
        (1) be entered into for a period of not more than five (5) years with an option to renew;
        (2) specify a maximum number of students to be transferred; and
        (3) fix a method for determining the amount of transfer tuition and the time of payment, which may

be different from that provided in section 14 of this chapter.
    (i) A school corporation may negotiate transfer tuition agreements with a neighboring school corporation that can accommodate additional students. Agreements under this section may:
        (1) be for one (1) year or longer; and
        (2) fix a method for determining the amount of transfer tuition or time of payment that is different from the method, amount, or time of payment that is provided in this section or section 14 of this chapter.
A school corporation may not transfer a student under this section without the prior approval of the child's parent.

SOURCE: IC 20-26-12-24; (11)PD4580.143. -->     SECTION 174. IC 20-26-12-24, AS AMENDED BY HEA 1429-2011, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 24. (a) The superintendent shall establish procedures for textbook adoption. The procedures must include the involvement of teachers and parents on an advisory committee for the preparation of recommendations for textbook adoptions. The majority of the members of the advisory committee must be teachers, and at least forty percent (40%) of the committee must be parents. These recommendations shall be submitted to the superintendent in accordance with the established procedures in the local school corporation.
    (b) The governing body, upon receiving these recommendations from the superintendent, shall adopt a textbook for use in teaching each subject in the school corporation.
    (c) A special committee of teachers and parents may also be appointed to review books, magazines, and audiovisual material used or proposed for use in the classroom to supplement state adopted textbooks and may make recommendations to the superintendent and the governing body concerning the use of this material.
    (d) A textbook selected shall be used for the lesser of:
        (1) six (6) years; or
        (2) the effective period of the academic standards adopted by the state board to which that textbook is aligned.
    (e) A selection may be extended beyond that period for up to six (6) years.
    (f) The governing body may, if the governing body considers it appropriate, retain a textbook adopted under this section and authorize the purchase of supplemental materials to ensure continued alignment with academic standards adopted by the state board.
    (g) The superintendent, advisory committee, and governing body may consider using the list of curricular materials (as defined in IC 20-20-5.5-1) provided by the department under IC 20-20-5.5.
    (h) Notwithstanding subsection (g) and this chapter, the superintendent, advisory committee, and governing body shall adopt reading textbooks from the list of recommended curricular materials provided by the department under IC 20-20-5.5.
    (i) A governing body may not purchase textbooks from a publisher unless the publisher agrees, in accordance with Sections 612(a)(23)(A) and 674(3)(4) 674(4) of the Individuals with Disabilities Education Act 2004 (20 U.S.C. 1400 et seq.), to provide or grant a license to the school corporation to allow for the reproduction of adopted textbooks in:
        (1) large type;
        (2) Braille; and
        (3) audio format. and
        (4) formats necessary to ensure usability for all students in the school corporation.
SOURCE: IC 20-28-9-1; (11)PD4580.144. -->     SECTION 175. IC 20-28-9-1, AS AMENDED BY SEA1-2011, SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. (a) This subsection takes effect July 1, 2012,

or upon the expiration of a contract in existence on July 1, 2011, whichever is earlier, and governs salary increases for a teacher employed by a school corporation on or after the date this subsection takes effect. Compensation attributable to additional degrees or graduate credits earned before the effective date of the local salary schedule created under this chapter shall continue. Compensation attributable to additional degrees for which a teacher has started course work before July 1, 2011, and completed course work before September 2, 2014, shall also continue.
    (b) Increases or increments in a local salary scale must be based upon a combination of the following factors:
        (1) A combination of the following factors taken together may account for not more than thirty-three percent (33%) of the calculation used to determine a teacher's increase or increment:
            (A) The number of years of a teacher's experience.
            (B) The attainment of either:
                (i) additional content area degrees beyond the requirements for employment; or
                (ii) additional content area degrees and credit hours beyond the requirements for employment, if required under an agreement bargained under IC 20-29.
        (2) The results of an evaluation conducted under IC 20-28-11.5.
        (3) The assignment of instructional leadership roles, including the responsibility for conducting evaluations under IC 20-28-11.5.
        (4) The academic needs of students in the school corporation.
    (c) A teacher rated ineffective or improvement necessary under IC 20-28-11.5 may not receive any raise or increment for the following year if the teacher's employment contract is continued. The amount that would otherwise have been allocated for the salary increase of teachers rated ineffective or improvement necessary shall be allocated for compensation of all teachers rated effective and highly effective based on the criteria in subsection (b).
    (d) A teacher who does not receive a raise or increment under subsection (c) may file a request with the superintendent or superintendent's designee not later than five (5) days after receiving notice that the teacher received a rating of ineffective. The teacher is entitled to a private conference with the superintendent or superintendent's designee.
    (e) Not later than January 31, 2012, the department shall publish a model salary schedule that a school corporation may adopt.
    (f) Each school corporation shall submit its local salary schedule to the department. The department shall publish the local salary schedules on the department's Internet web site.
    (g) The department shall report any noncompliance of this section to the state board.
    (h) The state board shall take appropriate action to ensure compliance with this section.
    (i) This chapter may not be construed to require or allow a school corporation to decrease the salary of any teacher below the salary the teacher was earning on or before July 1, 2012, if that decrease would be made solely to conform to the new salary scale.

SOURCE: IC 20-28-11.5-3; (11)PD4580.145. -->     SECTION 176. IC 20-28-11.5-3, AS ADDED BY SEA 1-2011, SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. As used in this chapter, "school corporation" includes:
        (1) a school corporation;
        (2) a school created by an interlocal agreement under IC 36-1-7;
        (3) a special education cooperative under IC 20-35-5; and
        (4) a joint career and technical education program created under IC 20-37-1.
However, for purposes of section 4(a) and 4(b) of this chapter, "school corporation" includes a charter

school, and a virtual charter school, an eligible school (as defined in IC 20-51-1-4.7), and a participating school (as defined in IC 20-51-1-6).

SOURCE: IC 20-29-4-1; (11)PD4580.146. -->     SECTION 177. IC 20-29-4-1, AS AMENDED BY SEA 575-2011, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. School employees may:
        (1) form, join, or assist school employee organizations;
        (2) participate in collective bargaining with school employers through representatives of their own choosing; and
        (3) engage in other activities, individually or in concert;
to establish, maintain, or improve salaries, wages, hours, salary and wage related fringe benefits, and other matters set forth in IC 20-29-6-4 and IC 20-29-6-5.
SOURCE: IC 20-29-6-12; (11)PD4580.147. -->     SECTION 178. IC 20-29-6-12, AS AMENDED BY SEA 575-2011, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. Formal collective bargaining between a school corporation and the exclusive representative shall not begin before:
         (1) August 1 in the first year of the state budget biennium; or
        (2) August 1 in the second year of the state budget biennium if the parties agreed to a one (1) year contract during the first year of the state budget biennium or the contract provides for renegotiating certain financial items the second year of a two (2) year contract.

Informal negotiations may be held before August 1.
SOURCE: IC 20-29-6-12.5; (11)PD4580.148. -->     SECTION 179. IC 20-29-6-12.5, AS ADDED BY SEA 575-2011, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12.5. (a) Before August 1 of the first year of the state budget biennium, the department shall provide the parties with an estimate of the general fund revenue available for bargaining in the school corporation from the school funding formula.
    (b)
Within thirty (30) days after the date of the first state ADM count date of the school year in the first year of the state budget biennium, the department shall provide the parties with a certification of estimated general fund revenue available for bargaining from the school funding formula. A school employer that has passed a general fund operating referendum under IC 20-46-1 must have that amount certified by the department of local government finance. The school corporation must obtain the certification before the commencement of bargaining. These certifications must be the basis for determinations throughout impasse proceedings under this chapter.
SOURCE: IC 20-29-6-13; (11)PD4580.149. -->     SECTION 180. IC 20-29-6-13, AS AMENDED BY SEA 575-2011, SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13. (a) At any time after at least sixty (60) days following the beginning of formal bargaining collectively between the parties, an impasse is declared, and the board shall appoint a mediator from the board's staff or an ad hoc panel.
    (b) The mediator shall begin mediation with fifteen (15) days after the board receives notice of impasse.
    (c) The mediation must consist of not more than three (3) mediation sessions and must result in one (1) of the following:
        (1) An agreement between the parties on the items permitted to be bargained under section 4 of this chapter.
        (2) Each party's last best offer, including fiscal rationale, related to items permitted to be bargained under section 4 of this chapter.
    (d) Costs for the mediator shall be borne equally by the parties.
    (e) Mediation shall be completed within thirty (30) days.
SOURCE: IC 20-29-6-15.1; (11)PD4580.150. -->     SECTION 181. IC 20-29-6-15.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15.1. (a) If an agreement has not been reached on the items permitted to be bargained collectively under section 4 of this chapter, within

fifteen (15) days after mediation under section 13 of this chapter has ended, the board shall initiate factfinding.
    (b) Factfinding must culminate in the factfinder imposing contract terms on the parties. The factfinder must select one (1) party's last best offer as the contract terms. The factfinder's order must be restricted to only those items permitted to be bargained and included in the collective bargaining agreement under section 4 of this chapter and must not put the employer in a position of deficit financing (as defined in IC 20-29-2-6). The factfinder's order may not impose terms beyond those proposed by the parties in their last, best offers.
    (c) Costs for the factfinder shall be borne equally by the parties.
    (d) Factfinding may not last longer than fifteen (15) days.

SOURCE: IC 20-29-6-16; (11)PD4580.151. -->     SECTION 182. IC 20-29-6-16, AS AMENDED BY SEA 575-2011, SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16. (a) If an agreement has not been reached on the items to be bargained collectively by November 1, as provided in IC 6-1.1-17-5, the parties shall continue the status quo, terms of the current contract that is in effect, and the school employer may issue tentative individual contracts and prepare its budget on that basis. During this status quo period, in order to allow the successful resolution of the dispute, the school employer may not unilaterally change the terms or conditions of employment that are issues in dispute.
     (b) During the bargaining process, Upon the expiration of the current contract that is in effect, the school employer shall continue under the terms of the current contract that is in effect, with no increase or increment in salary, wages, or benefits for any bargaining unit employee until a new contract is executed, unless continuation of the status quo would put the school employer in a position of deficit financing due to a reduction in the employer's actual general fund revenue or an increase in an employer's expenditures when the expenditures exceed the current year actual general fund revenue.
    (c) The only parts of the contract that must continue in status quo under this section are the items contained in the contract and listed in section 4 of this chapter.
    (d) This section may not be construed as relieving the school employer or the school employee organization from the duty to bargain collectively until a mutual agreement has been reached and a contract entered as called for in this chapter.
SOURCE: IC 20-29-8-7; (11)PD4580.152. -->     SECTION 183. IC 20-29-8-7, AS AMENDED BY SEA 575-2011, SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) When a factfinder is requested or required under IC 20-29-6, the board shall appoint a factfinder from the staff or panel established under section 6 of this chapter.
    (b) The factfinder shall make an investigation and hold hearings as the factfinder considers necessary in connection with a dispute.
    (c) The factfinder:
        (1) may restrict the factfinder's findings to those issues that the factfinder determines significant;
        (2) must restrict the findings to the items listed in IC 20-29-6-4; and
        (3) may not impose terms beyond those proposed by the parties in their last, best offers.
    (d) The factfinder may use evidence furnished to the factfinder by:
        (1) the parties;
        (2) the board;
        (3) the board's staff; or
        (4) any other state agency.
    (e) The factfinder shall conduct the factfinding hearing in public in a room or facility owned by the county or local unit of government located in the county in which the school employer is located, or if the

school employer is located in more than one (1) county, in the county in which the greatest number of students who attend the school employer's schools reside. The public hearing may begin not earlier than October 1 in the first year of the state budget biennium and must be concluded by December 31 of the same year.
    (f) The factfinding process may not exceed fifteen (15) days from beginning to end, and not more than two (2) of those days may be used for public testimony, which may be taken at the discretion of the factfinder. During the public hearing, each party shall present fully its last, best offer, including the fiscal rationale for the offer. Only general operating funds and those funds certified by the department of education and the department of local government finance may be considered as a source of the finding funding for items, unless the school funding formula allows other funds to be used for certain items.
    (g) The factfinder shall make a recommendation as to the settlement of the disputes over which the factfinder has jurisdiction.
    (h) The factfinder shall:
        (1) make the investigation, hearing, and findings as expeditiously as the circumstances permit; and
        (2) deliver the findings to the parties and to the board.
    (i) The board, after receiving the findings and recommendations, may make additional findings and recommendations to the parties based on information in:
        (1) the report; or
        (2) the board's own possession.
The board may not make any recommendations to the parties related to any items not specifically identified in IC 20-29-6-4.
    (j) At any time within five (5) days after the findings and recommendations are delivered to the board, the board may make the findings and recommendations of the factfinder and the board's additional findings and recommendations, if any, available to the public through news media and other means the board considers effective.
    (k) The board shall make the findings and recommendations described in subsection (j) available to the public not later than ten (10) days after the findings and recommendations are delivered to the board.

SOURCE: IC 20-29-8-10.1; (11)PD4580.153. -->     SECTION 184. IC 20-29-8-10.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10.1. A person who has served as a mediator in a dispute between a school employer and an exclusive representative may not serve as a factfinder in a dispute arising in the same school corporation within a period of five (5) years except by the mutual consent of the parties.
SOURCE: IC 20-29-8-13.1; (11)PD4580.154. -->     SECTION 185. IC 20-29-8-13.1 IS ADDED IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13.1. (a) The investigation, hearing, and findings of the factfinder must be:
        (1) made as expeditiously as the circumstances allow; and
        (2) delivered to the parties and to the board.
    (b) The board, after receiving the findings and recommendations under subsection (a), may make additional findings and recommendations to the parties based upon information in the report or in the board's possession. The board may not make any recommendations to the parties related to any items not specifically identified in IC 20-29-6-4 and may not address items beyond those proposed by the parties in their last, best offers.
    (c) The board:
        (1) may, at any time within five (5) days; and
        (2) shall, within ten (10) days;
after receiving the findings and recommendations delivered under subsection (a), make the findings and recommendations of the factfinder and the board's additional findings and recommendations, if any, available to the public through the news media and any other means.

SOURCE: IC 20-31-2-9; (11)PD4580.155. -->     SECTION 186. IC 20-31-2-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. "Special management team" means an entity that manages a turnaround academy.
SOURCE: IC 20-31-2-10; (11)PD4580.156. -->     SECTION 187. IC 20-31-2-10 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. "Turnaround academy" means a school that is subject to IC 20-31-9.5.
SOURCE: IC 20-31-9-3; (11)PD4580.157. -->     SECTION 188. IC 20-31-9-3, AS ADDED BY P.L.1-2005, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) This section applies if, in the third year after initial placement in the lowest category or designation, a school still remains in the lowest category or designation.
    (b) The state board shall establish and assign an expert team to the school. The expert team:
        (1) must include representatives from the community or region that the school serves; and
        (2) may include:
            (A) school superintendents, members of governing bodies, and teachers from school corporations that are in high categories or designations; and
            (B) special consultants or advisers.
    (c) The expert team shall:
        (1) assist the school in revising the school's plan; and
        (2) recommend changes in the school that will promote improvement, including the reallocation of resources or requests for technical assistance.
    (d) The governing body of the school corporation in which a school to which this section applies is located may petition the state board to immediately restructure the school by presenting a written plan to the state board setting forth the proposed intervention for the school. If the state board approves the petition and accepts the plan, the school:
        (1) operates under the applicable provisions of IC 20-31-9.5; and
        (2) is carried forward in the same performance category or designation in which the school is placed at the time the state board accepts the plan.

SOURCE: IC 20-31-9-4; (11)PD4580.158. -->     SECTION 189. IC 20-31-9-4, AS ADDED BY P.L.1-2005, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) This section applies if, in the fifth year after initial placement in the lowest category or designation, a school still remains in the lowest category or designation.
    (b) The state board shall do the following:
        (1) Hold at least one (1) public hearing in the school corporation where the school is located to consider and hear testimony concerning the following options for school improvement:
            (A) Merging the school with a nearby school that is in a higher category.
            (B) Assigning a special management team to operate all or part of the school.
            (C) The department's recommendations for improving the school.
            (D) Other options for school improvement expressed at the public hearing. including closing the school.
            (E) Revising the school's plan in any of the following areas:
                (i) Changes in school procedures or operations.
                (ii) Professional development.
                (iii) Intervention for individual teachers or administrators.
        (2) If the state board determines that intervention will improve the school, implement at least one (1) of the options listed in subdivision (1).
     (c) Unless the school is closed or merged, a school that is subject to improvement under this section becomes a turnaround academy under IC 20-31-9.5.
SOURCE: IC 20-31-9.5; (11)PD4580.159. -->     SECTION 190. IC 20-31-9.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]:
     Chapter 9.5. Turnaround Academies
    Sec. 1. (a) None of the following may be considered a school employer under IC 20-29-6 with respect to a turnaround academy:
        (1) The state.
        (2) The state board.
        (3) A special management team assigned by the state board under IC 20-31-9-4 to operate a school as a turnaround academy.
    (b) A special management team assigned under IC 20-31-9-4 to operate a school as a turnaround academy shall make all personnel decisions in the school. In operating the school as a turnaround academy under this chapter, the special management team is not bound by a contract entered into under IC 20-29.
    Sec. 2. (a) If the state board assigns a special management team under IC 20-31-9-4 to operate a school as a turnaround academy, for as long as the special management team operates the turnaround academy:
        (1) the special management team shall continue to use the school building, the accompanying real property, and the building's contents, equipment, and supplies; and
        (2) the school corporation shall continue to:
            (A) provide transportation for students attending the turnaround academy at the same level of service the school corporation provided before the school became a turnaround academy; and
            (B) maintain and repair the buildings and grounds consistent with the maintenance and repair to the school corporation's other buildings and grounds.
        The school corporation shall consult with the special management team regarding these matters.
    (b) If the special management team contracts with a school corporation for goods or services, the school corporation may not charge the special management team more for the goods or services than the school corporation pays for the goods or services.
    (c) The special management team and the school corporation's board shall hold a joint public meeting at least two (2) times each year to discuss issues and progress concerning the turnaround academy.
    Sec. 3. (a) Turnaround academies are eligible to receive building and technology loans administered by the state board from the common school fund.
    (b) A student who attends a turnaround academy or another school subject to intervention under this chapter remains, under IC 20-43-4-1, an eligible pupil of the school corporation where the student has legal settlement.
    (c) The state board, based upon recommendations received from the department, shall determine the amounts of state tuition support and federal funds that are necessary to fund options for improvement implemented by the state board under this chapter with respect to each turnaround academy.
    (d) The department shall do the following:
        (1) Withhold from state tuition support and federal funds otherwise to be distributed to the school corporation of the school operated as a turnaround academy under this chapter the amount determined under subsection (c) for the affected students. The amount withheld under this subdivision may not exceed the total per pupil funding for the affected students.
        (2) Enter into any contracts necessary to implement the options for improvement implemented for the school by the state board, including contracts with a special management team assigned under IC 20-31-9-4 to operate the school as a turnaround academy.
        (3) Make payments under the contracts entered into under subdivision (2) with funds withheld from the school corporation under subdivision (1).
    Sec. 4. Any student who lives in the attendance area served by a school that operated as a turnaround academy under this chapter may attend the turnaround academy. The turnaround academy may not refuse enrollment to a student who lives in the attendance area.
    Sec. 5. (a) The executive of a city or county in which one (1) or more turnaround academies are located may petition the state board to oversee the special management team. The petition must include the following:
        (1) The names of one (1) or more turnaround academies located within the executive's jurisdiction for which the executive wishes to conduct oversight.
        (2) The functions the executive wishes to perform.
        (3) Information on how and by whom those functions will be carried out.
    (b) The state board may approve or not approve a petition under this section in whole or part.
    Sec. 6. The state board may adopt rules under IC 4-22-2 to implement this chapter.

SOURCE: IC 20-32-5-15; (11)PD4580.160. -->     SECTION 191. IC 20-32-5-15, AS ADDED BY P.L.1-2005, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. (a) The state superintendent shall develop an ISTEP program testing schedule in which:
        (1) each student in grades 3, 6, 8, and 10 must be tested; and
        (2) each student in grade 10 or grade 11 must take a graduation examination.
    (b) The state board shall adopt rules to establish when a student is considered to be in grade 10 for purposes of initially taking the graduation examination.
SOURCE: IC 20-33-5-7; (11)PD4580.161. -->     SECTION 192. IC 20-33-5-7, AS AMENDED BY HEA 1429-2011, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) If a determination is made that the applicant is eligible for assistance, the school corporation shall pay the cost of the student's required fees.
    (b) A school corporation may shall receive a reimbursement from the department for some or all of the costs incurred by a school corporation during a school year in providing textbook assistance to students who are eligible under section 2 of this chapter.
    (c) To be guaranteed some level of reimbursement from the department, the governing body of a school corporation shall request the reimbursement before November 1 of a school year.
    (d) In its request, the governing body shall certify to the department:
        (1) the number of students who are enrolled in that school corporation and who are eligible for assistance under this chapter;
        (2) the costs incurred by the school corporation in providing:
            (A) textbooks (including textbooks used in special education and high ability classes) to these students;
            (B) workbooks, digital content, and consumable textbooks (including workbooks, consumable textbooks, and other consumable instructional materials that are used in special education and

high ability classes) that are used by students for not more than one (1) school year;
            (C) instead of the purchase of textbooks, developmentally appropriate material for instruction in kindergarten through the grade 3 level, laboratories, and children's literature programs; and
            (D) curricular materials (as defined in IC 20-20-5.5-1);
        (3) that each textbook described in subdivision (2)(A) and included in the reimbursement request (except those textbooks used in special education classes and high ability classes) has been adopted by the governing body; and
        (4) that the amount of reimbursement requested for each textbook under subdivision (3) does not exceed twenty percent (20%) of the costs incurred for the textbook;
        (5) that the amount of reimbursement requested for each workbook or consumable textbook (or other consumable instructional material used in special education and high ability classes) under subdivision (2)(B), if applicable, does not exceed one hundred percent (100%) of the costs incurred for the workbook, digital content, or consumable textbook (or other consumable instructional material used in special education and high ability classes);
        (6) that the amount of reimbursement requested for each textbook used in special education and high ability classes is amortized for the number of years in which the textbook is used;
        (7) that the amount of reimbursement requested for developmentally appropriate material is amortized for the number of years in which the material is used and does not exceed a total of one hundred percent (100%) of the costs incurred for the developmentally appropriate material; and
        (8) (4) any other information required by the department. including copies of purchase orders used to acquire consumable instructional materials used in special education and high ability classes and developmentally appropriate material.
    (e) Each school within a school corporation shall maintain complete and accurate information concerning the number of students determined to be eligible for assistance under this chapter. This information shall be provided to the department upon request.
    (f) If the amount of reimbursement requested before November 1 of a particular year exceeds the amount of money appropriated to the department for this purpose, the department shall proportionately reduce the amount of reimbursement to each school corporation.
    (g) A school corporation may submit a supplemental reimbursement request under section 8 of this chapter. The school corporation is entitled to receive a supplemental reimbursement only if there are funds available. The department shall proportionately reduce the amount of supplemental reimbursement to each school corporation if the total amount requested exceeds the amount of money available to the department for this purpose. In the case of a supplemental reimbursement, the provisions in this section apply, except that section 8 of this chapter applies to the making of the supplemental request by the governing body of the school corporation.
    (h) (f) Parents receiving other governmental assistance or aid that considers educational needs in computing the entire amount of assistance granted may not be denied assistance if the applicant's total family income does not exceed the standards established by this chapter.
     (g) The amount of reimbursement that a school corporation is entitled to receive shall be determined as provided in section 9.5 of this chapter.

SOURCE: IC 20-33-5-9; (11)PD4580.162. -->     SECTION 193. IC 20-33-5-9, AS AMENDED BY HEA 1429-2011, SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) If a parent of a child or an emancipated minor who is enrolled in an accredited nonpublic school meets the financial eligibility standard under section 2 of this chapter, the parent or the emancipated minor may receive a reimbursement from the department as provided in this chapter for the costs or some of the costs incurred by the parent or

emancipated minor in fees that are reimbursable under section 7 of this chapter. The extent to which the fees are reimbursable under this section may not exceed the percentage rates of reimbursement under section 7 of this chapter. In addition, if a child enrolls in an accredited nonpublic school after the initial request for reimbursement is filed under subsection (d), the parent of the child or the emancipated minor who meets the financial eligibility standard may receive a reimbursement from the department for the costs or some of the costs incurred in fees that are reimbursable under section 7 of this chapter by applying to the accredited nonpublic school for assistance. In this case, this section applies. However, section 10 of this chapter applies to the making of the supplemental request for reimbursement by the principal or other designee of the accredited nonpublic school.
    (b) The department shall provide each accredited nonpublic school with sufficient application forms for assistance, prescribed by the state board of accounts.
    (c) Each accredited nonpublic school shall provide the parents or emancipated minors who wish to apply for assistance with:
        (1) the appropriate application forms; and
        (2) any assistance needed in completing the application form.
    (d) The parent or emancipated minor shall submit the application to the accredited nonpublic school. The accredited nonpublic school shall make a determination of financial eligibility subject to appeal by the parent or emancipated minor.
    (e) If a determination is made that the applicant is eligible for assistance, subsection (a) applies.
    (f) To be guaranteed some level of reimbursement from the department, the principal or other designee shall submit the reimbursement request before November 1 of a school year.
    (g) In its request, the principal or other designee shall certify to the department:
        (1) the number of students who are enrolled in the accredited nonpublic school and who are eligible for assistance under this chapter;
        (2) the costs incurred in providing:
            (A) textbooks (including textbooks used in special education and high ability classes);
            (B) workbooks, digital content, and consumable textbooks (including workbooks, consumable textbooks, and other consumable teaching materials that are used in special education and high ability classes) that are used by students for not more than one (1) school year; and
            (C) curricular materials (as defined in IC 20-20-5.5-1);
        (3) that each textbook described in subdivision (2)(A) and included in the reimbursement request (except those textbooks used in special education classes and high ability classes) has been adopted by the governing body; and
        (4) that the amount of reimbursement requested for each textbook under subdivision (3) does not exceed twenty percent (20%) of the costs incurred for the textbook;
        (5) that the amount of reimbursement requested for each workbook or consumable textbook (or other consumable teaching material used in special education and high ability classes) under subdivision (2)(B), if applicable, does not exceed one hundred percent (100%) of the costs incurred for the workbook or consumable textbook (or other consumable teaching material used in special education and high ability classes);
        (6) that the amount of reimbursement requested for each textbook used in special education and high ability classes is amortized for the number of years in which the textbook is used; and
        (7) (4) any other information required by the department. including copies of purchase orders used to acquire consumable teaching materials used in special education and high ability classes.
    (h) If the amount of reimbursement requested before November 1 of a particular school year exceeds

the amount of money appropriated to the department for this purpose, the department shall proportionately reduce the amount of reimbursement to each accredited nonpublic school. An accredited nonpublic school may submit a supplemental reimbursement request under section 10 of this chapter. The parent or emancipated minor is entitled to receive a supplemental reimbursement only if funds are available. The department shall proportionately reduce the amount of supplemental reimbursement to the accredited nonpublic schools if the amount requested exceeds the amount of money available to the department for this purpose.
     (h) The amount of reimbursement that a parent or emancipated minor is entitled to receive shall be determined as provided in section 9.5 of this chapter.
    (i) The accredited nonpublic school shall distribute the money received under this chapter to the appropriate eligible parents or emancipated minors.
    (j) Section 7(h) of this chapter applies to parents or emancipated minors as described in this section.
    (k) The accredited nonpublic school and the department shall maintain complete and accurate information concerning the number of applicants determined to be eligible for assistance under this section.
    (l) The state board shall adopt rules under IC 4-22-2 to implement this section.

SOURCE: IC 20-33-5-9.5; (11)PD4580.163. -->     SECTION 194. IC 20-33-5-9.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9.5. (a) This section applies to reimbursements made under this chapter in calendar year 2012 and thereafter.
    (b) The amount of reimbursement that a school corporation or an accredited nonpublic school is entitled to receive under section 7 of this chapter in a calendar year is equal to the amount determined in the following STEPS:
        STEP ONE: Determine the amount appropriated to make reimbursements under this chapter for the state fiscal year ending in the calendar year.
        STEP TWO: Determine the total number of eligible students for which reimbursement was requested under either section 7 or 9 of this chapter before November 1 of the previous calendar year by all school corporations and accredited nonpublic schools.
        STEP THREE: Divide the result determined in STEP ONE by the number determined in STEP TWO:
        STEP FOUR: Multiply:
            (A) the STEP THREE result; by
            (B) the number of eligible students for which reimbursement was requested under section 7 or 9 of this chapter before November 1 of the previous calendar year by the school corporation or the accredited nonpublic school.

SOURCE: IC 20-35-8-1; (11)PD4580.164. -->     SECTION 195. IC 20-35-8-1, AS ADDED BY P.L.1-2005, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. (a) Except as provided in subsection (b), if a student with legal settlement in a school corporation is transferred to attend school in another school corporation because of a disability or multiple disabilities, the transferor corporation shall:
        (1) either:
            (A) provide; or
            (B) pay for, in the amount determined under section 2 of this chapter;
        any transportation that is necessary or feasible, as determined under section 2 of this chapter and the rules adopted by the state board; and
        (2) pay transfer tuition for the student to the transferee corporation in accordance with IC 20-26-11.
    (b) If the student attends a school operated through:
        (1) a joint school service and supply program; or
        (2) another cooperative program;
involving the school corporation of the student's legal settlement, transportation and other costs shall be made in amounts and at the times provided in the agreement or other arrangement made between the participating school corporations.
     (c) Student data, including ISTEP program testing scores, academic progress, grade level, and graduation date, for a student described in subsection (a) shall be included in determinations for the school corporation in which the student has legal settlement.
SOURCE: IC 20-40-8-1; (11)PD4580.165. -->     SECTION 196. IC 20-40-8-1, AS AMENDED BY P.L.146-2008, SECTION 477, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 1. As used in this chapter, "calendar year distribution" means the sum of the following:
        (1) A school corporation's:
            (A) state tuition support; and
            (B) maximum permissible tuition support levy (as defined in IC 20-45-1-15 before its repeal);
        for the calendar year.
        (2) The school corporation's sum of the following excise tax revenue (as defined in IC 20-43-1-12) of the school corporation for the immediately preceding calendar year:
             (A) Financial institution excise tax revenue (IC 6-5.5).
            (B) Motor vehicle excise taxes (IC 6-6-5).
            (C) Commercial vehicle excise taxes (IC 6-6-5.5).
            (D) Boat excise tax (IC 6-6-11).
            (E) Aircraft license excise tax (IC 6-6-6.5).

SOURCE: IC 20-40-8-11; (11)PD4580.166. -->     SECTION 197. IC 20-40-8-11, AS AMENDED BY SEA 575-2011, SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. Money in the fund may be used to pay for the purchase, lease, repair, or maintenance of equipment to be used by the school corporation. However, money in the fund may not be used to pay for the purchase, lease, repair, or maintenance of the following:
        (1) Vehicles to be used for any purpose. other than maintenance vehicles.
        (2) Except as provided in section 12 of this chapter, equipment to be used primarily for interscholastic or extracurricular activities.
SOURCE: IC 20-40-8-16; (11)PD4580.167. -->     SECTION 198. IC 20-40-8-16, AS AMENDED BY SEA-575-2011, SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 16. (a) For purposes of this section, maintenance does not include janitorial or comparable routine services normally provided in the daily operation of the facilities or equipment.
    (b) Subject to this section, money in the fund may be used to pay for services of school corporation employees who are:
        (1) bricklayers;
        (2) stone masons;
        (3) cement masons;
        (4) tile setters;
        (5) glaziers;
        (6) insulation workers;
        (7) asbestos removers;
        (8) painters;
        (9) paperhangers;
        (10) drywall applicators and tapers;
        (11) plasterers;
        (12) pipe fitters;
        (13) roofers;
        (14) structural and steel workers;
        (15) metal building assemblers;
        (16) heating and air conditioning installers;
        (17) welders;
        (18) carpenters;
        (19) electricians; or
        (20) plumbers;
as these occupations are defined in the United States Department of Labor, Employment and Training Administration, Dictionary of Occupational Titles, Fourth Edition, Revised 1991.
    (c) Payment may be made under this section for employee services described in subsection (b) only if:
        (1) the employees perform:
            (A) construction of;
            (B) renovation of;
            (C) remodeling of;
            (D) repair of; or
            (E) maintenance on;
        the facilities and equipment specified in sections 10 and 11 of this chapter; and
         (2) the total of all annual salaries and benefits paid by the school corporation to employees described in this section is at least six hundred thousand dollars ($600,000); and
        
(2) (3) the payment of the employees described in this section is included as part of the school corporation's proposed plan.
     (d) The number of employees covered by this section is limited to the number of employee positions described in this section that existed in the school corporation on January 1, 1993.
SOURCE: IC 20-43-1-1; (11)PD4580.168. -->     SECTION 199. IC 20-43-1-1, AS AMENDED BY P.L.182-2009(ss), SECTION 323, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. This article expires January 1, 2012. 2014.
SOURCE: IC 20-43-1-3; (11)PD4580.169. -->     SECTION 200. IC 20-43-1-3, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 3. "Academic "Honors diploma award" refers to the amount determined under IC 20-43-10-2.
SOURCE: IC 20-43-1-8.5; (11)PD4580.170. -->     SECTION 201. IC 20-43-1-8.5, AS ADDED BY HEA 1341-2011, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011] (RETROACTIVE)]: Sec. 8.5. (a) "Child find" means activities conducted by the school corporation to locate, identify, and evaluate all students at least three (3) years of age, but less than twenty-two (22) years of age, who are in need of special education and related services, regardless of the severity of their disabilities, including but not limited to students who attend a nonpublic school within the school corporation's boundaries.
     (b) Notwithstanding the effective date in HEA 1341-2011, SECTION 1, this section takes effect July 1, 2011 (rather than January 1, 2011).
SOURCE: IC 20-43-1-18.5; (11)PD4580.171. -->     SECTION 202. IC 20-43-1-18.5, AS ADDED BY HEA 1341-2011, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011](RETROACTIVE)]: Sec. 18.5. (a) "Parentally placed nonpublic school students with disabilities" means students with disabilities who are enrolled by their parents in nonpublic schools or facilities, including religious schools or facilities, that are day schools or residential schools providing elementary or secondary education as determined under Indiana law. For

students at least three (3) years of age and less than six (6) years of age, nonpublic schools are schools that meet the definition of an elementary school in 511 IAC 7-32-33.
     (b) Notwithstanding the effective date in HEA 1341-2011, SECTION 2, this section takes effect July 1, 2011 (rather than January 1, 2011).

SOURCE: IC 20-43-1-25; (11)PD4580.172. -->     SECTION 203. IC 20-43-1-25, AS AMENDED BY P.L.182-2009(ss), SECTION 325, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 25. "State tuition support" means the amount of state funds to be distributed to:
        (1) a school corporation other than a virtual charter school in any calendar year under this article for all grants, distributions, and awards described in IC 20-43-2-3; and
        (2) a virtual charter school in any calendar year under IC 20-24-7-13. IC 20-43-6-3.
SOURCE: IC 20-43-2-2; (11)PD4580.173. -->     SECTION 204. IC 20-43-2-2, AS AMENDED BY P.L.182-2009(ss), SECTION 329, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011 (RETROACTIVE)]: Sec. 2. The maximum state distribution for a calendar year for all school corporations for the purposes described in section 3 of this chapter is:
        (1) five billion eight hundred twenty-nine million nine hundred thousand dollars ($5,829,900,000) in 2009;
        (2) six billion five hundred forty-eight million nine hundred thousand dollars ($6,548,900,000) in 2010; and
        (3) (1) six billion five two hundred sixty-eight forty-seven million five eight hundred thousand dollars ($6,568,500,000) ($6,247,800,000) in 2011;
         (2) six billion two hundred seventy-seven million eight hundred thousand dollars ($6,277,800,000) in 2012; and
        (3) six billion three hundred thirty-nine million six hundred thousand dollars ($6,339,600,000) in 2013.

SOURCE: IC 20-43-2-3; (11)PD4580.174. -->     SECTION 205. IC 20-43-2-3, AS AMENDED BY P.L.182-2009(ss), SECTION 330, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 3. If the total amount to be distributed:
        (1) as basic tuition support;
        (2) for academic honors diploma awards;
        (3) for primetime distributions;
        (4) for special education grants; and
        (5) for career and technical education grants;
        (6) for restoration grants; and
        (7) for small school grants;
for a particular year exceeds the maximum state distribution for a calendar year, the amount to be distributed for state tuition support under this article to each school corporation during each of the last six (6) months of the year shall be proportionately reduced so that the total reductions equal the amount of the excess.
SOURCE: IC 20-43-3-4; (11)PD4580.175. -->     SECTION 206. IC 20-43-3-4, AS AMENDED BY P.L.182-2009(ss), SECTION 331, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 4. (a) This subsection applies to calendar year 2009. A school corporation's previous year revenue equals the amount determined under STEP TWO of the following formula:
        STEP ONE: Determine the sum of the following:
            (A) The school corporation's basic tuition support for the year that precedes the current year.
            (B) The school corporation's maximum permissible tuition support levy for calendar year 2008.
            (C) The school corporation's excise tax revenue for calendar year 2007.
        STEP TWO: Subtract from the STEP ONE result an amount equal to the reduction in the school corporation's state tuition support under any combination of subsection (c), subsection (d), IC 20-10.1-2-1 (before its repeal), or IC 20-30-2-4.
    (b) This subsection applies to calendar years 2010 and 2011. A school corporation's previous year revenue equals the amount determined under STEP TWO of the following formula:
        STEP ONE: Determine the sum of the following:
            (A) The school corporation's basic tuition support actually received for the year that precedes the current year.
            (B) For calendar year 2010, the amount of education stabilization funds received by the school corporation in calendar year 2009 under Section 14002(a) of the federal American Recovery and Reinvestment Act of 2009 (ARRA).
            (C) The amount of the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years.
             (B) For 2012, the restoration grant (IC 20-43-12 (repealed)) actually received for 2011.
            (C) For 2012, the small school grant (IC 20-43-12.2 (repealed)) actually received for 2011.

        STEP TWO: Subtract from the STEP ONE result an amount equal to the reduction in the school corporation's state tuition support under any combination of subsection (c) (b) or IC 20-30-2-4.
    (c) (b) A school corporation's previous year revenue must be reduced if:
        (1) the school corporation's state tuition support for special education or career and technical education is reduced as a result of a complaint being filed with the department after December 31, 1988, because the school program overstated the number of children enrolled in special education programs or career and technical education programs; and
        (2) the school corporation's previous year revenue has not been reduced under this subsection more than one (1) time because of a given overstatement.
The amount of the reduction equals the amount the school corporation would have received in state tuition support for special education and career and technical education because of the overstatement.
    (d) This section applies only to 2009. A school corporation's previous year revenue must be reduced if an existing elementary or secondary school located in the school corporation converts to a charter school under IC 20-24-11. The amount of the reduction equals the product of:
        (1) the sum of the amounts distributed to the conversion charter school under IC 20-24-7-3(c) and IC 20-24-7-3(d) (as effective December 31, 2008); multiplied by
        (2) two (2).
SOURCE: IC 20-43-4-7; (11)PD4580.176. -->     SECTION 207. IC 20-43-4-7, AS AMENDED BY P.L.182-2009(ss), SECTION 332, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 7. (a) This subsection does not apply to a charter school. When calculating adjusted ADM for 2010 2012 distributions, this subsection, section, as effective after December 31, 2009, 2011, shall be used to calculate the adjusted ADM for the previous year rather than the calculation used to calculate adjusted ADM for 2009 2011 distributions. For purposes of this article, a school corporation's "adjusted ADM" for the current year is the result determined under the following formula:
        STEP ONE: Determine the sum of the following:
            (A) The school corporation's ADM for the year preceding the current year by two (2) years divided by three (3).
            (B) The school corporation's ADM for the year preceding the current year by one (1) year divided by three (3).
            (C) The school corporation's ADM for the current year divided by three (3).
        STEP TWO: Determine the school corporation's ADM for the current year.
        STEP THREE: Determine the greater of the following:
            (A) The STEP ONE result.
            (B) The STEP TWO result.
    (b) A charter school's adjusted ADM for purposes of this article is the charter school's current ADM. school corporation's current ADM.
SOURCE: IC 20-43-5-3; (11)PD4580.177. -->     SECTION 208. IC 20-43-5-3, AS AMENDED BY P.L.182-2009(ss), SECTION 333, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 3. A school corporation's complexity index is determined under the following formula:
        STEP ONE: Determine the greater of zero (0) or the result of the following:
            (1) Determine the percentage of the school corporation's students who were eligible for free or reduced price lunches in the school year ending in the later of:
                (A) 2007 for purposes of determining the complexity index in 2009, and 2009 2011 for the purposes of determining the complexity index in 2010 2012 and 2011; 2013; or
                (B) the first year of operation of the school corporation.
            (2) Determine the quotient of:
                (A) in 2009:
                (i) two thousand four hundred dollars ($2,400); divided by
                (ii) four thousand eight hundred twenty-five dollars ($4,825);
                (B) in 2010:
                (i) two thousand two hundred sixty-three dollars ($2,263); divided by
                (ii) four thousand five hundred fifty dollars ($4,550); and
                (C) in 2011:
                (i) two thousand two hundred forty-one dollars ($2,241); divided by
                (ii) four thousand five hundred five dollars ($4,505);
                 (A) in 2012:
                (i) two thousand one hundred twenty-nine dollars ($2,129); divided by
                (ii) four thousand two hundred eighty dollars ($4,280); and
                (B) in 2013:
                (i) two thousand one hundred ninety dollars ($2,190); divided by
                (ii) four thousand four hundred five dollars ($4,405).

            (3) Determine the product of:
                (A) the subdivision (1) amount; multiplied by
                (B) the subdivision (2) amount.
        STEP TWO: Determine the result of one (1) plus the STEP ONE result.
        STEP THREE: This STEP applies if the STEP TWO result in 2012 is equal to or greater than at least one and twenty-five twenty-eight hundredths (1.25). (1.28) and applies if the STEP TWO result in 2013 is at least one and thirty-one hundredths (1.31). Determine the result of the following:
            (1) In 2012, subtract one and twenty-five twenty-eight hundredths (1.25) (1.28) and in 2013, subtract one and thirty-one hundredths (1.31) from the STEP TWO result.
            (2) Determine the result of:
                (A) the STEP TWO result; plus
                (B) the subdivision (1) result.
The data to be used in making the calculations under STEP ONE must be the data collected in the annual

pupil enrollment count by the department.

SOURCE: IC 20-43-5-4; (11)PD4580.178. -->     SECTION 209. IC 20-43-5-4, AS AMENDED BY P.L.182-2009(ss), SECTION 334, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 4. A school corporation's foundation amount for a calendar year is the result determined under STEP TWO THREE of the following formula:
        STEP ONE: The STEP ONE amount is:
            (A) in 2009, four thousand eight hundred twenty-five dollars ($4,825);
            (B) in 2010, four thousand five hundred fifty dollars ($4,550); and
            (C) in 2011, four thousand five hundred five dollars ($4,505);
             (A) in 2012, four thousand two hundred eighty dollars ($4,280); and
            (B) in 2013, four thousand four hundred five dollars ($4,405).

        STEP TWO: Multiply the STEP ONE amount by the school corporation's complexity index.
         STEP THREE: Determine the sum of the STEP TWO amount and the following:
            (A) Zero dollars ($0), if the school corporation's current ADM is less than five hundred (500).
            (B) One hundred fifty dollars ($150), if the school corporation's current ADM is at least five hundred (500) and is not more than one thousand (1,000).
            (C) The result of one hundred fifty thousand dollars ($150,000) divided by the school corporation's current ADM, if the school corporation's current ADM is more than one thousand (1,000).

SOURCE: IC 20-43-5-6; (11)PD4580.179. -->     SECTION 210. IC 20-43-5-6, AS AMENDED BY P.L.182-2009(ss), SECTION 336, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 6. (a) A school corporation's transition to foundation amount for a calendar year is equal to the result determined under STEP THREE TWO of the following formula:
        STEP ONE: Determine the difference of:
            (A) the school corporation's foundation amount; minus
            (B) the lesser of:
                (i) the
school corporation's previous year revenue foundation amount; or
                (ii) the result of the school corporation's foundation amount multiplied by one and two-tenths (1.2).

        STEP TWO: Divide the STEP ONE result by:
            (A) three (3) in 2009;
            (B) two (2) in 2010; and
            (C) one (1) in 2011.
        STEP THREE: TWO: A school corporation's STEP THREE TWO amount is the following:
            (A) For a charter school located outside Marion County that has previous year revenue that is not greater than zero (0), the charter school's STEP THREE TWO amount is the quotient of:
                (i) the school corporation's transition to foundation revenue for the calendar year where the charter school is located; divided by
                (ii) the school corporation's current ADM.
            (B) For a charter school located in Marion County that has previous year revenue that is not greater than zero (0), the charter school's STEP THREE TWO amount is the weighted average of the transition to foundation revenue for the school corporations where the students counted in the current ADM of the charter school have legal settlement, as determined under item (iv) of the following formula:
                (i) Determine the transition to foundation revenue for each school corporation where a student

counted in the current ADM of the charter school has legal settlement.
                (ii) For each school corporation identified in item (i), divide the item (i) amount by the school corporation's current ADM.
                (iii) For each school corporation identified in item (i), multiply the item (ii) amount by the number of students counted in the current ADM of the charter school that have legal settlement in the particular school corporation.
                (iv) Determine the sum of the item (iii) amounts for the charter school.
            (C) The STEP THREE TWO amount for a school corporation that is not a charter school described in clause (A) or (B) is the following:
                (i) The school corporation's foundation amount for the calendar year if the STEP ONE amount is at least negative one hundred fifty dollars (-$150) and not more than fifty dollars ($50).
                (ii) The sum of the school corporation's previous year revenue foundation amount and the greater of the school corporation's STEP TWO amount or fifty dollars ($50), if the school corporation's STEP ONE amount is greater than fifty dollars ($50). zero (0) or greater.
                (iii) (ii) The amount determined under subsection (b), if the school corporation's STEP ONE amount is less than negative. one hundred fifty dollars (-$150). zero (0).
    (b) For the purposes of STEP THREE (C)(iii) TWO (C)(ii) in subsection (a), determine the result of:
        (1) the result determined for the school corporation's previous year revenue foundation amount; corporation under STEP ONE (B) of subsection (a); minus
        (2) the greater of:
            (A) one hundred fifty dollars ($150); or
            (B) the result of:
            (i) (A) the absolute value of the STEP ONE amount; divided by
            (ii) nine (9) in 2010, and eight (8) in 2011. (B) seven (7) in 2012 and six (6) in 2013.

SOURCE: IC 20-43-5-7; (11)PD4580.180. -->     SECTION 211. IC 20-43-5-7, AS AMENDED BY P.L.182-2009(ss), SECTION 337, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 7. A school corporation's transition to foundation revenue for a calendar year is equal to the product of:
            (1) the school corporation's transition to foundation amount for the calendar year; multiplied by
            (2) the school corporation's
                (A) current ADM. if the current ADM for the school corporation is less than one hundred (100); and
                (B) current adjusted ADM, if clause (A) does not apply.
SOURCE: IC 20-43-6-3; (11)PD4580.181. -->     SECTION 212. IC 20-43-6-3, AS AMENDED BY HEA 1002-2011, SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 3. (a) A school corporation's basic tuition support for a year is the amount determined under the applicable provision of this section.
    (b) This subsection applies to a school corporation that has transition to foundation revenue per adjusted ADM for a year that is not equal to the foundation amount for the year. The school corporation's basic tuition support for a year is equal to the school corporation's transition to foundation revenue for the year.
    (c) This subsection applies to a school corporation that has transition to foundation revenue per adjusted ADM for a year that is equal to the foundation amount for the year. The school corporation's basic tuition support for a year is the sum of the following:
        (1) The foundation amount for the year multiplied by the school corporation's adjusted ADM.
        (2) The amount of the annual decrease in federal aid to impacted areas from the year preceding the ensuing calendar year by three (3) years to the year preceding the ensuing calendar year by two (2) years.
    (d) (c) This subsection applies to students of a virtual charter school. who are participating in a program under IC 20-24-7-13. A virtual charter school's basic tuition support for a year for those students is the amount determined under IC 20-24-7-13.
SOURCE: IC 20-43-7-0.5; (11)PD4580.182. -->     SECTION 213. IC 20-43-7-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 0.5. This chapter applies to a virtual charter school.
SOURCE: IC 20-43-7-9; (11)PD4580.183. -->     SECTION 214. IC 20-43-7-9, AS ADDED BY HEA 1341-2011, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011](RETROACTIVE)]: Sec. 9. (a) This section does not apply to a charter school.
    (b) Each calendar year, a school corporation shall expend part of the school corporation's state special education grant on the provision of special education and related services to parentally placed nonpublic school students with disabilities. The school corporation shall, at a minimum, expend an amount from the state special education grant equal to the amount attributable to the number of parentally placed nonpublic school students with disabilities included in the school corporation's count conducted under section 1 of this chapter.
    (c) In determining compliance with this section, a school corporation may include state special education grant expenditures on the following:
        (1) Activities and services for which the school corporation may expend federal grants under Part B of the federal Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.).
        (2) Child find activities, including the cost of initial educational evaluations and reevaluations.
    (d) A school corporation shall maintain sufficient and accurate records to demonstrate compliance with this section.
    (e) The state board shall adopt rules to implement this section, including, but not limited to, annual reporting requirements, monitoring, and consequences for noncompliance. The consequences may include requiring expenditure of additional state funds in a subsequent year if the school fails to expend the requisite amount in a prior year that occurs after June 30, 2011.
     (f) Notwithstanding the effective date in HEA 1341-2011, SECTION 3, this section takes effect July 1, 2011 (rather than January 1, 2011).
SOURCE: IC 20-43-8-0.5; (11)PD4580.184. -->     SECTION 215. IC 20-43-8-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 0.5. This chapter does not apply to a virtual charter school.
SOURCE: IC 20-43-9-0.5; (11)PD4580.185. -->     SECTION 216. IC 20-43-9-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 0.5. This chapter does not apply to a virtual charter school.
SOURCE: IC 20-43-9-6; (11)PD4580.186. -->     SECTION 217. IC 20-43-9-6, AS AMENDED BY P.L.182-2009(ss), SECTION 342, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 6. A school corporation's primetime distribution for a calendar year under this chapter is the amount determined by the following formula:
        STEP ONE: Determine the applicable target pupil/teacher ratio for the school corporation as follows:
            (A) If the school corporation's complexity index is less than one and one-tenth (1.1), the school corporation's target pupil/teacher ratio is eighteen to one (18:1).
            (B) If the school corporation's complexity index is at least one and one-tenth (1.1) but less than one and two-tenths (1.2), three-tenths (1.3), the school corporation's target pupil/teacher ratio is fifteen (15) plus the result determined in item (iii) to one (1):
                (i) Determine the result of one and two-tenths (1.2), three-tenths (1.3) minus the school corporation's complexity index.
                (ii) Determine the item (i) result divided by one-tenth (0.1). two-tenths (0.2).
                (iii) Determine the item (ii) result multiplied by three (3).
            (C) If the school corporation's complexity index is at least one and two-tenths (1.2), three-tenths (1.3), the school corporation's target pupil/teacher ratio is fifteen to one (15:1).
        STEP TWO: Determine the result of:
            (A) the ADM of the school corporation in kindergarten through grade 3 for the current school year; divided by
            (B) the school corporation's applicable target pupil/teacher ratio, as determined in STEP ONE.
        STEP THREE: Determine the result of:
            (A) the basic tuition support for the year multiplied by seventy-five hundredths (0.75); divided by
            (B) the school corporation's total ADM.
        STEP FOUR: Determine the result of:
            (A) the STEP THREE result; multiplied by
            (B) the ADM of the school corporation in kindergarten through grade 3 for the current school year.
        STEP FIVE: Determine the result of:
            (A) the STEP FOUR result; divided by
            (B) the staff cost amount.
        STEP SIX: Determine the greater of zero (0) or the result of:
            (A) the STEP TWO amount; minus
            (B) the STEP FIVE amount.
        STEP SEVEN: Determine the result of:
            (A) the STEP SIX amount; multiplied by
            (B) the staff cost amount.
        STEP EIGHT: Determine the greater of the STEP SEVEN amount or:
             (A) for 2012, fifty percent (50%) of the school corporation's guaranteed primetime amount; or
            (B) for 2013, zero (0).

        STEP NINE: A school corporation's amount under this STEP is the following:
            (A) If the amount the school corporation received under this chapter in the previous calendar year is greater than zero (0), the amount under this STEP is the lesser of:
                (i) the STEP EIGHT amount; or
                (ii) the amount the school corporation received under this chapter for the previous calendar year multiplied by one hundred seven and one-half percent (107.5%).
            (B) If the amount the school corporation received under this chapter in the previous calendar year is not greater than zero (0), the amount under this STEP is the STEP EIGHT amount.
SOURCE: IC 20-43-10-0.5; (11)PD4580.187. -->     SECTION 218. IC 20-43-10-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 0.5. This chapter does not apply to a virtual charter school.
SOURCE: IC 20-43-10-2; (11)PD4580.188. -->     SECTION 219. IC 20-43-10-2, AS ADDED BY P.L.2-2006, SECTION 166, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2012]: Sec. 2. (a) A school corporation's academic honors diploma award for a calendar year is the amount determined under STEP TWO FOUR of the following formula:
        STEP ONE: Determine the number of the school corporation's eligible pupils who successfully completed an academic honors diploma program in the school year ending in the previous calendar year.
         STEP TWO: Determine the result of:
            (A) the number of the school corporation's eligible pupils who successfully completed a Core 40 diploma with technical honors program in the school year ending in the previous calendar year; minus
            (B) the number of eligible pupils who would otherwise be double counted under both clause (A) and STEP ONE.
        STEP THREE: Determine the sum of the number of eligible students determined under STEP ONE and the number of eligible students determined under STEP TWO.

        STEP TWO: FOUR: Multiply the STEP ONE THREE amount by nine hundred dollars ($900).
    (b) An amount received by a school corporation as an honors diploma award may be used only for:
        (1) any:
            (A) staff training;
            (B) program development;
            (C) equipment and supply expenditures; or
            (D) other expenses;
        directly related to the school corporation's academic honors diploma program; and
        (2) the school corporation's program for high ability students.
    (c) A governing body that does not comply with this section for a school year is not eligible to receive an academic honors diploma award for the following school year.
SOURCE: IC 20-46-7-12; (11)PD4580.190. -->     SECTION 220. IC 20-46-7-12, AS AMENDED BY P.L.146-2008, SECTION 514, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) Except as provided by IC 5-1-14-10, the maximum term or repayment period for bonds issued by a school corporation for a school building construction project may not exceed twenty (20) years after the date of the issuance of the bonds.
     (b) If a school corporation is an eligible school corporation under IC 5-1-5-2.5, the school corporation may extend the repayment period beyond the maximum repayment period that applied to the bond, loan, or lease at the time the obligation was incurred as provided by IC 5-1-5-2.5.
SOURCE: IC 20-46-7-15; (11)PD4580.191. -->     SECTION 221. IC 20-46-7-15 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 15. (a) As used in this section, "debt service fund" includes the separate debt service fund for the payment of debt service on bonds used to implement solutions to a contractual retirement or severance liability.
    (b) As used in this section, "eligible school corporation" has the meaning set forth in IC 5-1-5-2.5.
    (c) As used in this section, "increment" refers to the annual increment computed under IC 5-1-5-2.5 with respect to bonds issued to retire or otherwise refund other bonds
for each year that the bonds that are being retired or refunded would have been outstanding.
    (d) A school corporation may make a request to continue to impose a debt service fund levy in the amount that the school corporation would have been able to impose to pay debt service on bonds that were retired or refunded by the issuance of refunding bonds. A school corporation must include in its request a copy of the ordinance adopted under IC 5-1-5-2.5.
    (e) The department of local government finance shall grant the school corporation permission to continue to impose such a debt service fund levy if the department finds that the school corporation qualifies to issue refunding bonds under IC 5-1-5-2.5.
    (f) An eligible school corporation that is granted permission to impose a debt service fund levy as described in this section may transfer the lesser of the amount of credits granted under IC 6-1.1-20.6 against the school corporation's combined levy for all the school corporation's funds or the amount of the increment from the debt service fund to:
        (1) the capital projects fund;
        (2) the transportation fund;
        (3) the school bus replacement fund; or
        (4) a combination of the funds in subdivisions (1) through (3).

SOURCE: IC 20-51-4-3; (11)PD4580.192. -->     SECTION 222. IC 20-51-4-3, AS ADDED BY HEA 1003-2011, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) An eligible school may not discriminate on the basis of race, color, or national origin.
    (b) An eligible school shall abide by the school's written admission policy fairly and without discrimination with regard to students who:
        (1) apply for; or
        (2) are awarded;
scholarships under this chapter.
    (c) If the number of applicants for enrollment in an eligible school under a choice scholarship exceeds the number of choice scholarships available to the eligible school, the eligible school must draw at random in a public meeting the applications of applicants who are entitled to a choice scholarship from among the applicants who meet the requirements for admission to the eligible school.
    (d) The department shall at a minimum, annually visit each eligible school and charter school make random visits to eligible schools and charter schools to verify that the eligible school or charter school complies with the provisions of IC 20-51-4, the Constitutions of the state of Indiana and the United States.
    (e) Each eligible school, public school, and charter school shall grant the department full reasonable access to its premises, including access to any points of ingress to and egress from the school's grounds, buildings, and property. for observing classroom instruction and reviewing any instructional materials and curriculum.
     (f) Each year the principal of each eligible school shall certify to the department that the eligible school is complying with the requirements of this chapter. The department shall develop a process for eligible schools to follow to make certifications.
SOURCE: IC 21-12-3-13; (11)PD4580.193. -->     SECTION 223. IC 21-12-3-13, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13. The commission may deny not provide assistance under this chapter to a higher education award applicant or recipient who is:
        (1) convicted of a felony;
        (2) sentenced to a term of imprisonment for that felony; and
        (3) confined for that felony at a penal facility (as defined in IC 35-41-1-21).
SOURCE: IC 21-12-3-19; (11)PD4580.194. -->     SECTION 224. IC 21-12-3-19, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 19. The auditor of state shall create a separate and segregated higher education award fund distinct from the freedom of choice grant fund. Money may be exchanged or transferred between these funds as provided by section 21 of this chapter and IC 21-12-4-9. All money disbursed from the higher education award fund shall be in accordance with this chapter. Money remaining in the higher education award fund at the end of any fiscal year does not revert to the state general fund but remains available to be used for making higher education awards under this chapter.
SOURCE: IC 21-12-3-21; (11)PD4580.195. -->     SECTION 225. IC 21-12-3-21, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 21. After the commitments for the higher education award fund have been fully met for any academic year under this chapter, The commission may order the auditor of state to transfer to the freedom of choice grant fund any money remaining in from the higher education award fund. The auditor of state shall make the transfer ordered by the commission with the approval of the budget director and the governor.
SOURCE: IC 21-12-4-6; (11)PD4580.196. -->     SECTION 226. IC 21-12-4-6, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ

AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. Except as provided in section 9 of this chapter and IC 21-12-3-21, money shall not be exchanged or transferred among these funds.

SOURCE: IC 21-12-4-9; (11)PD4580.197. -->     SECTION 227. IC 21-12-4-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. The commission may order the auditor of state to transfer money from the freedom of choice grant fund to the higher education award fund. The auditor of state shall make the transfer ordered by the commission with the approval of the budget director and the governor.
SOURCE: IC 21-12-6-6; (11)PD4580.198. -->     SECTION 228. IC 21-12-6-6, AS AMENDED BY SEA 577-2011, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) A student may apply to the commission for a scholarship. To qualify for a scholarship, the student must meet the following requirements:
        (1) Be an eligible student who qualified to participate in the program under section 5 of this chapter.
        (2) Be a resident of Indiana.
        (3) Be a graduate from a secondary school located in Indiana that meets the admission criteria of an eligible institution and have achieved a cumulative grade point average in high school of:
            (A) at least 2.0 on a 4.0 grading scale, if the student is expected to graduate from high school before July 1, 2014; and
            (B) at least 2.5 on a 4.0 grading scale, if the student is expected to graduate from high school after June 30, 2014.
        (4) Have applied to attend and be accepted to attend as a full-time student an eligible institution.
        (5) Certify in writing that the student has:
            (A) not illegally used controlled substances (as defined in IC 35-48-1-9);
            (B) not illegally consumed alcoholic beverages;
            (C) not committed any other crime or a delinquent act (as described in IC 31-37-1-2 or IC 31-37-2-2 through IC 31-37-2-5 (or IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5) before their repeal));
            (D) timely filed an application for other types of financial assistance available to the student from the state or federal government; and
            (E) participate in an academic success program required under the rules adopted by the commission and the commission for higher education.
        (6) Submit to the commission all the information and evidence required by the commission to determine eligibility as a scholarship applicant.
        (7) This subdivision applies only to applicants who initially enroll in the program under section 5 of this chapter or IC 21-12-6.5-2 after June 30, 2011. For purposes of this chapter, applicants who are enrolled in the program before July 1, 2011, will not have an income or financial resources test applied to them when they subsequently apply for a scholarship. Have a lack of financial resources reasonably available to the applicant, as defined by the commission, that, in the absence of an award under this chapter, would deter the scholarship applicant from completing the applicant's education at the approved postsecondary educational institution that the applicant has selected and that has accepted the applicant. if the student initially enrolls in the program after June 30, 2011.
        (8) Meet any other minimum criteria established by the commission.
    (b) This section applies to an individual who graduates from high school after December 31, 2011. To be eligible for a scholarship under this section, a student must initially attend the eligible institution described in subdivision (a)(4) not later than the fall semester (or its equivalent, as determine by the commission) in the year immediately following the year in which the student graduates from high school.
SOURCE: IC 21-12-6-7; (11)PD4580.199. -->     SECTION 229. IC 21-12-6-7, AS AMENDED BY SEA 577-2011, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. (a) Subject to IC 21-12-13-2, a scholarship awarded under section 6 of this chapter or this section may be renewed. To qualify for a scholarship renewal, a scholarship recipient must do the following:
        (1) Submit to the commission a renewal application that contains all the information and evidence required by the commission to determine eligibility for the scholarship renewal.
        (2) Continue to be enrolled as a full-time student in good standing at an eligible institution.
        (3) This subdivision applies only to applicants who initially enroll in the program under section 5 of this chapter or IC 21-12-6.5-2 after June 30, 2011. For purposes of this chapter, applicants who are enrolled in the program before July 1, 2011, will not have an income or financial resources test applied to them when they subsequently apply to renew a scholarship. Continue to have a lack of financial resources reasonably available to the applicant, as defined by the commission, that, in the absence of an award under this chapter, would deter the scholarship applicant from completing the applicant's education at the approved postsecondary educational institution that the applicant has selected and that has accepted the applicant. if the student initially enrolls in the program after June 30, 2011.
        (4) Subject to subsection (b), if the student initially enrolls in an eligible institution for a semester (or its equivalent) beginning after June 30, 2012, maintain at least the following cumulative grade point average:
            (A) For credit hours applicable to the equivalent of the applicant's freshman academic year, a cumulative grade point average that the eligible institution determines is satisfactory academic progress.
            (B) For credit hours applicable to the equivalent of the applicant's sophomore academic year, a cumulative grade point average of 2.25 on a 4.0 grading scale or its equivalent as established by the eligible institution.
            (C) For credit hours applicable to the equivalent of the applicant's junior or senior academic year, a cumulative grade point average of 2.5 on a 4.0 grading scale or its equivalent as established by the eligible institution.
        (5) Continue to meet any other minimum criteria established by the commission.
    (b) After the first semester or its equivalent at the eligible institution that a person does not achieve the requisite cumulative grade point average specified in subsection (a)(4), the person is considered to be on probation and must achieve the requisite cumulative grade point average by the next semester or its equivalent at the eligible institution in order to continue to receive benefits under this chapter.
SOURCE: IC 21-12-6-10.3; (11)PD4580.200. -->     SECTION 230. IC 21-12-6-10.3, AS ADDED BY SEA 577-2011, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10.3. (a) This section applies to a student who qualifies for a scholarship under section 6 or 7 of this chapter, if the student initially enrolls in the program after June 30, 2011. Applicants who are enrolled in the program before July 1, 2011, will not have an income or financial resources test applied to them under this section when they subsequently apply for a scholarship or apply to renew a scholarship.
    (b) A scholarship applicant shall be awarded the following amount as adjusted under subsections (c) and (d):
        (1) If the scholarship applicant attends an approved postsecondary educational institution that is a state educational institution, the full educational costs that the scholarship applicant would otherwise be required to pay at the eligible institution.
        (2) If the scholarship applicant attends an approved postsecondary educational institution that is

private, the lesser of the educational costs that the scholarship applicant would otherwise be required to pay at the private eligible institution, or the average of the educational costs of all state educational institutions, not including Ivy Tech Community College.
        (3) If the scholarship applicant attends an approved postsecondary educational institution that is a postsecondary proprietary educational institution, the lesser of the educational costs that the scholarship applicant would otherwise be required to pay at the postsecondary proprietary educational institution or the educational costs of Ivy Tech Community College.
    (c) The amount of an award under subsection (b) shall be reduced by:
        (1) the amount of the Frank O'Bannon grant awarded to the scholarship applicant; plus
        (2) an additional amount based on the expected family contribution, if necessary, as determined by the commission, to provide scholarships within the available appropriation.
    (d) The total of all tuition scholarships awarded under this section in a state fiscal year may not exceed the amount available for distribution from the fund for scholarships under this chapter. If the total amount to be distributed from the fund in a state fiscal year exceeds the amount available for distribution, the amount to be distributed to each eligible applicant shall be proportionately reduced so that the total reductions equal the amount of the excess based on the relative financial need of each eligible applicant.

SOURCE: IC 21-12-10; (11)PD4580.201. -->     SECTION 231. IC 21-12-10 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 10. Mitch Daniels Early Graduation Scholarship
    Sec. 1. As used in this chapter, "publicly supported school" means the following:
        (1) A school corporation (as defined in IC 20-18-2-16(a)).
        (2) A charter school (as defined in IC 20-24-1-4).
        (3) A high school maintained by a state educational institution under IC 20-24.5 or another law.
    Sec. 2. The Mitch Daniels early graduation scholarship program is established. The commission shall administer the Mitch Daniels early graduation scholarship program.
    Sec. 3. An individual is eligible for a Mitch Daniels early graduation scholarship if the individual:
        (1) is a resident of Indiana, as defined by the commission;
        (2) attended a publicly supported school on a full-time equivalency basis (as defined in IC 20-43-1-14) for at least the last two (2) semesters before the individual graduated from high school;
        (3) had legal settlement (as defined in IC 20-18-2-11) in Indiana for at least the last two (2) semesters before the individual graduated from high school;
        (4) met at least the minimum requirements set by the Indiana state board of education for granting a high school diploma by the end of grade 11 (including any summer school courses completed before July 1 of a year) and was awarded after December 31, 2010, a high school diploma by the publicly supported school that the individual last attended for course credits earned before the end of grade 11;
        (5) was not enrolled in a publicly supported school for any part of grade 12;
        (6) applies to the commission for a
Mitch Daniels early graduation scholarship in the manner specified by the commission; and
        (7) within five (5) months after graduating from high school, becomes a student in good standing at an approved postsecondary educational institution whose students are eligible to receive a higher education award (IC 21-12-3-11) or a freedom of choice grant (IC 21-12-4-4) and is engaged in a program that will lead to an approved postsecondary degree or credential.
    Sec. 4. Graduation from a nonstandard course and curriculum program or a program for high

ability students that has been granted a waiver by the Indiana state board of education shall be treated as meeting the minimum requirements set by the state board of education for granting a high school diploma.
    Sec. 5. (a) A publicly supported school shall submit to the department of education the name of each individual described in section 3(1) through 3(4) of this chapter.
    (b) The department of education shall submit to the commission the information submitted under subsection (a) and any other supporting information requested by the commission on the schedule and in the form specified by the commission.
    Sec. 6. (a) If an applicant becomes a student in good standing at an approved postsecondary institution, the institution shall provide a written notice to the commission.
    (b) If the applicant has met the eligibility requirements prescribed in this chapter, the commission shall award the applicant a Mitch Daniels early graduation scholarship and make the payment directly to the institution. The institution may apply the payment to any outstanding tuition and fees and shall remit the balance of the scholarship to the student.
    Sec. 7. The amount of a Mitch Daniels early graduation scholarship is four thousand dollars ($4,000).
    Sec. 8. The amount of a
Mitch Daniels early graduation scholarship awarded under this chapter shall not be considered as a financial resource in a determination of the amount of any grant or scholarship under this article or, except as required by federal law, the amount of any other grant or scholarship administered by the commission.
    Sec. 9. An institution is not required to change its admission standards to accept an individual to whom the commission has issued a Mitch Daniels early graduation scholarship. The scholarship may not be used for remedial course work at the institution. The institution shall provide facilities and instruction to the applicant on the same terms as to other students.
    Sec. 10. (a) The commission shall notify the department of the amount of Mitch Daniels early graduation scholarships granted for each state fiscal year. The department shall deduct the scholarship amount presented by the commission from the appropriation for tuition support for that state fiscal year and promptly transfer the amount to the commission.
    (b) In the department's biennial budget request, the department shall estimate the number of students that are expected to become eligible for a Mitch Daniels early graduation scholarship and the estimated total amount needed to provide the scholarships for each state fiscal year for which the department requests an appropriation for tuition support. The department shall include in its request for tuition support an amount sufficient to provide the scholarships. The requested amount may not exceed the amount that would have been included in the department's request for tuition support if the students had not graduated early.

SOURCE: IC 21-14-2-7; (11)PD4580.202. -->     SECTION 232. IC 21-14-2-7, AS AMENDED BY P.L.3-2008, SECTION 132, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 7. The rates must be set according to the procedure set forth in section 8 of this chapter
        (1) on or before June 30 of the odd-numbered year; or
        (2) not later than sixty (60) days after the state budget bill is enacted into law.
whichever
is later.
SOURCE: IC 21-14-2-8; (11)PD4580.203. -->     SECTION 233. IC 21-14-2-8, AS ADDED BY P.L.234-2007, SECTION 272, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. A state educational institution shall hold a public hearing before adopting a proposed tuition and fee rate increase. The state educational institution shall give public notice of the hearing at least ten (10) days before the hearing. The public notice must

include the specific proposal for the tuition and fee rate increase and the expected uses of the revenue to be raised by the proposed increase. The hearing must be held
        (1) on or before May 31 of each odd numbered year; or
        (2) thirty-one (31) not later than thirty (30) days after the state budget bill is enacted into law;
whichever is later. commission for higher education has established the recommended tuition and mandatory fee increase targets for each state educational institution under section 12.5 of this chapter.

SOURCE: IC 21-14-2-12.5; (11)PD4580.204. -->     SECTION 234. IC 21-14-2-12.5, AS ADDED BY P.L.224-2007, SECTION 136, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12.5. (a) This section applies to tuition and mandatory fees that a board of trustees of a state educational institution votes to increase after June 30, 2007. under section 7 of this chapter.
    (b) Not later than thirty (30) days after the enactment of a state budget, the commission for higher education shall recommend nonbinding tuition and mandatory fee increase targets for each state educational institution.
    (c) The state educational institution shall submit a report to the state budget committee concerning the financial and budgetary factors considered by the board of trustees in determining the amount of the increase.
    (d) The state budget committee shall review the targets recommended under subsection (b) and reports received under subsection (c) and may request that a state educational institution appear at a public meeting of the state budget committee concerning the report.
SOURCE: IC 21-30-6-3; (11)PD4580.205. -->     SECTION 235. IC 21-30-6-3, AS ADDED BY P.L.2-2007, SECTION 271, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) If the board of trustees of a state educational institution decides to sell, convey, or dispose of real property received as a gift, bequest, or devise, the board of trustees shall adopt a resolution to that effect.
    (b) If the value of the real property, as determined by an independent appraisal procured by the board of trustees, is less than five seven hundred fifty thousand dollars ($500,000), ($750,000), no further authorization is required before the board of trustees may dispose of the real property.
    (c) If the board of trustees determines by appraisal or otherwise that the value of the real property is five seven hundred fifty thousand dollars ($500,000) ($750,000) or more, the following apply:
        (1) The value of the real property comprised in and constituting the gift, bequest, or devise shall be determined by three (3) disinterested appraisers appointed by the governor.
        (2) The real property may not be sold, conveyed, or otherwise disposed of for less than the appraised value of the real property.
        (3) The sale, conveyance, or disposition must be approved by the governor.
SOURCE: IC 21-33-3-3; (11)PD4580.206. -->     SECTION 236. IC 21-33-3-3, AS AMENDED BY P.L.31-2010, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The commission for higher education shall complete a review of a project approved or authorized by the general assembly.
     (b) This subsection does not apply to a project approved or authorized by the general assembly for which a state appropriation will be used. The commission for higher education shall complete the review required under subsection (a) within ninety (90) days after the project is submitted for review. If the review is not completed within ninety (90) days, the budget agency or the budget committee may proceed without the commission's review.
SOURCE: IC 21-33-3-5; (11)PD4580.207. -->     SECTION 237. IC 21-33-3-5, AS AMENDED BY P.L.31-2010, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) Subject to this section, in addition to projects authorized by the general assembly, the board of trustees of a state educational institution may

engage in a project to:
        (1) construct buildings or facilities of a cost greater than five hundred thousand dollars ($500,000); or
        (2) purchase or lease-purchase land, buildings, or facilities the principal value of which exceeds two hundred fifty thousand dollars ($250,000);
only if there are funds available for the project, the project meets any of the applicable conditions, and the project is reviewed by the commission for higher education and approved by the governor upon recommendation of the budget agency. The review by the commission for higher education must be completed not later than ninety (90) days after the project is submitted for review.
    (b) If:
        (1) any part of the cost of a project described in subsection (a) is paid by state appropriated funds or by mandatory student fees assessed all students for the project; and
        (2) the project is to:
            (A) construct new buildings or facilities of a cost greater than five seven hundred fifty thousand dollars ($500,000); ($750,000); or
            (B) purchase or lease-purchase land, buildings, or facilities the principal value of which exceeds three five hundred thousand dollars ($300,000); ($500,000);
the project must also be approved by the general assembly.
    (c) This section does not limit the board of trustees in supplementing a project approved by the general assembly from gifts or other available funds so long as approval for the expansion of the project is given by the governor on review by the commission for higher education and recommendation of the budget agency.
    (d) The review and approval requirements of this section do not apply to a project to:
        (1) construct buildings or facilities; or
        (2) purchase or lease-purchase land, buildings, or facilities;
if the project involves the expansion or improvement of housing for students undertaken entirely by a fraternity or sorority at the state educational institution.

SOURCE: IC 21-33-3-6; (11)PD4580.208. -->     SECTION 238. IC 21-33-3-6, AS AMENDED BY P.L.31-2010, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) Subject to subsection (b), in addition to projects authorized by the general assembly, the board of trustees of a state educational institution may engage in a repair and rehabilitation project for which:
        (1) the cost of the project exceeds seven hundred fifty thousand dollars ($750,000); and
        (2) any part of the cost of the project is paid by state appropriated funds or by mandatory student fees assessed all students;
only if the project is reviewed by the commission for higher education and approved by the governor, on recommendation of the budget agency. The review by the commission for higher education must be completed not later than ninety (90) days after the project is submitted for review.
    (b) If no part of the cost of a repair and rehabilitation project is paid by state appropriated funds or by mandatory student fees assessed all students, the review and approval requirements of this section apply only if the project exceeds one million five hundred thousand dollars ($1,000,000). ($1,500,000).
SOURCE: IC 21-33-3-9; (11)PD4580.209. -->     SECTION 239. IC 21-33-3-9, AS ADDED BY P.L.2-2007, SECTION 274, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. To pay the cost of a project authorized under this chapter, the following funds may be used:
        (1) Funds appropriated in any state fiscal year for the project by the general assembly, subject to allocation of the funds by the budget agency, with approval of the governor.
        (2) Funds derived from the issuance and sale of bonds by the board of trustees of any of the state educational institutions, so long as the issuance of the bonds that are to be supported by mandatory student fees assessed all students has been approved by the general assembly for each applicable project.
        (3) Funds derived from earnings, farm and miscellaneous sales, or other receipts, so long as a project to:
            (A) construct buildings or facilities with a cost greater than ninety three hundred thousand dollars ($90,000); ($300,000); or
            (B) purchase or lease-purchase land, buildings, or facilities the principal value of which exceeds fifty one hundred fifty thousand dollars ($50,000); ($150,000);
        is reviewed by the commission for higher education and approved by the governor, on recommendation of the budget agency.
        (4) Federal funds granted and allowed a state educational institution for a project to construct buildings or facilities, so long as each project:
            (A) with a cost greater than ninety three hundred thousand dollars ($90,000); ($300,000); or
            (B) to purchase or lease-purchase land, buildings, or facilities the principal value of which exceeds one hundred fifty thousand dollars ($50,000); ($150,000);
        is reviewed by the commission for higher education and approved by the governor, on recommendation of the budget agency.
        (5) Available funds derived from gifts, bequests, devises, or other source not listed in subdivisions (1) through (4), so long as each project to:
            (A) construct buildings or facilities with a cost greater than ninety three hundred thousand dollars ($90,000); ($300,000); or
            (B) purchase or lease-purchase land, buildings, or facilities the principal value of which exceeds one hundred fifty thousand dollars ($50,000); ($150,000);
        is reviewed by the commission for higher education and approved by the governor, on recommendation of the budget agency.
SOURCE: IC 21-33-4-1; (11)PD4580.210. -->     SECTION 240. IC 21-33-4-1, AS ADDED BY P.L.2-2007, SECTION 274, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. A state educational institution may undertake a qualified energy savings project as provided in this chapter. If the part of the qualified energy savings project related to real property improvements is greater than five seven hundred fifty thousand dollars ($500,000), ($750,000), the project must be reviewed by the commission for higher education and approved by the governor and the budget director on the recommendation of the budget committee. A qualified energy savings project does not require the prior approval of the general assembly, notwithstanding the source of payment for the project or bonds issued to fund the project.
SOURCE: IC 21-34-9-2; (11)PD4580.211. -->     SECTION 241. IC 21-34-9-2, AS ADDED BY P.L.2-2007, SECTION 275, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. This chapter does not apply to any contract:
        (1) relating to a building facility the cost of which does not exceed three hundred fifty thousand dollars ($50,000); ($350,000); or
        (2) for architectural or engineering services relating to the planning of a building facility.
SOURCE: IC 21-38-6-1; (11)PD4580.212. -->     SECTION 242. IC 21-38-6-1, AS ADDED BY P.L.2-2007, SECTION 279, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. An employee health plan that provides coverage for early intervention services shall reimburse the first steps program for payments made by the program for early intervention services that are covered under the employee health plan. a monthly fee established by the division of disability and rehabilitative services. The monthly fee shall be provided instead of

claims processing of individual claims.

SOURCE: IC 21-43-1-5; (11)PD4580.213. -->     SECTION 243. IC 21-43-1-5, AS ADDED BY P.L.234-2007, SECTION 111, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. "Postsecondary credit":
         (1) for purposes of section 5.5 of this chapter and IC 21-43-1.5, means credit toward:
            (A) an associate degree;
            (B) a baccalaureate degree; or
            (C) a career and technical education certification;
        that is granted by a state educational institution upon the successful completion of a course taken in a high school setting in a program established under IC 21-43-4 or IC 21-43-5;

        (1) (2) for purposes of IC 21-43-2, means credit toward:
            (A) an associate degree;
            (B) a baccalaureate degree; or
            (C) a career and technical education certification;
        granted by a state educational institution upon the successful completion of a course taken under a program established under IC 21-43-2; and
        (2) (3) for purposes of IC 21-43-5, means credit toward:
            (A) an associate degree;
            (B) a baccalaureate degree; or
            (C) a career and technical education certification;
        granted by a state educational institution upon the successful completion of a course taken under a program established under IC 21-43-5.
SOURCE: IC 21-43-1-5.5; (11)PD4580.214. -->     SECTION 244. IC 21-43-1-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.5. "Priority dual credit course" refers to a course of study for postsecondary credit that the commission designates as a priority dual credit course under IC 21-43-1.5-1.
SOURCE: IC 21-43-1.5; (11)PD4580.215. -->     SECTION 245. IC 21-43-1.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 1.5. Priority Dual Credit Courses
    Sec. 1. The commission may identify a set of courses that:
        (1) are offered in the high school setting for postsecondary credit; and
        (2) receive state funding;
as priority dual credit courses.
    Sec. 2. The rate charged to a student for a priority dual credit course shall be set by the commission.

SOURCE: IC 21-43-4-3; (11)PD4580.216. -->     SECTION 246. IC 21-43-4-3, AS ADDED BY P.L.2-2007, SECTION 284, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. The postsecondary enrollment program is established for secondary school students. in grades 11 and 12.
SOURCE: IC 21-43-4-4; (11)PD4580.217. -->     SECTION 247. IC 21-43-4-4, AS ADDED BY P.L.2-2007, SECTION 284, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. A student may enroll in courses offered by an eligible institution under the program on a full-time or part-time basis during grade 11 or grade 12, or both. secondary school.
SOURCE: IC 21-43-4-6; (11)PD4580.218. -->     SECTION 248. IC 21-43-4-6, AS ADDED BY P.L.2-2007, SECTION 284, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. Before February 1 each year, each school corporation shall provide each student in grades 8, 9, 10, and 11 with information concerning the program.
SOURCE: IC 21-43-5-2; (11)PD4580.219. -->     SECTION 249. IC 21-43-5-2, AS ADDED BY P.L.234-2007, SECTION 64, IS AMENDED TO READ

AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. The double up for college program is established for secondary school students. in grades 11 and 12. School corporations and state educational institutions may collaborate to offer:
        (1) early college;
        (2) dual credit; or
        (3) dual enrollment;
programs, as defined by the commission for higher education, that meet the educational objectives of the school corporation and are offered by the state educational institutions in secondary school locations.

SOURCE: IC 21-43-5-3; (11)PD4580.220. -->     SECTION 250. IC 21-43-5-3, AS ADDED BY P.L.2-2007, SECTION 284, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. A student may enroll in a course offered by a state educational institution under the program on a full-time or part-time basis during grade 11 or grade 12, or both. secondary school.
SOURCE: IC 27-8-10-2.1; (11)PD4580.221. -->     SECTION 251. IC 27-8-10-2.1, AS AMENDED BY P.L.1-2007, SECTION 186, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.1. (a) There is established a nonprofit legal entity to be referred to as the Indiana comprehensive health insurance association, which must assure that health insurance is made available throughout the year to each eligible Indiana resident applying to the association for coverage. All carriers, health maintenance organizations, limited service health maintenance organizations, and self-insurers providing health insurance or health care services in Indiana must be members of the association. The association shall operate under a plan of operation established and approved under subsection (c) and shall exercise its powers through a board of directors established under this section.
    (b) The board of directors of the association consists of nine (9) members whose principal residence is in Indiana selected as follows:
        (1) Four (4) members to be appointed by the commissioner from the members of the association, one (1) of which must be a representative of a health maintenance organization.
        (2) Two (2) members to be appointed by the commissioner shall be consumers representing policyholders.
        (3) Two (2) members shall be the state budget director or designee and the commissioner of the department of insurance or designee.
        (4) One (1) member to be appointed by the commissioner must be a representative of health care providers.
The commissioner shall appoint the chairman of the board, and the board shall elect a secretary from its membership. The term of office of each appointed member is three (3) years, subject to eligibility for reappointment. Members of the board who are not state employees may be reimbursed from the association's funds for expenses incurred in attending meetings. The board shall meet at least semiannually, with the first meeting to be held not later than May 15 of each year.
    (c) The association shall submit to the commissioner a plan of operation for the association and any amendments to the plan necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation becomes effective upon approval in writing by the commissioner consistent with the date on which the coverage under this chapter must be made available. The commissioner shall, after notice and hearing, approve the plan of operation if the plan is determined to be suitable to assure the fair, reasonable, and equitable administration of the association and provides for the sharing of association losses on an equitable, proportionate basis among the member carriers, health maintenance organizations, limited service health maintenance organizations, and self-insurers. If the association fails to submit a suitable plan of operation within one hundred eighty (180) days after the

appointment of the board of directors, or at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall adopt rules under IC 4-22-2 necessary or advisable to implement this section. These rules are effective until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner. The plan of operation must:
        (1) establish procedures for the handling and accounting of assets and money of the association;
        (2) establish the amount and method of reimbursing members of the board;
        (3) establish regular times and places for meetings of the board of directors;
        (4) establish procedures for records to be kept of all financial transactions and for the annual fiscal reporting to the commissioner;
        (5) establish procedures whereby selections for the board of directors will be made and submitted to the commissioner for approval;
        (6) contain additional provisions necessary or proper for the execution of the powers and duties of the association; and
        (7) establish procedures for the periodic advertising of the general availability of the health insurance coverages from the association.
    (d) The plan of operation may provide that any of the powers and duties of the association be delegated to a person who will perform functions similar to those of this association. A delegation under this section takes effect only with the approval of both the board of directors and the commissioner. The commissioner may not approve a delegation unless the protections afforded to the insured are substantially equivalent to or greater than those provided under this chapter.
    (e) The association has the general powers and authority enumerated by this subsection in accordance with the plan of operation approved by the commissioner under subsection (c). The association has the general powers and authority granted under the laws of Indiana to carriers licensed to transact the kinds of health care services or health insurance described in section 1 of this chapter and also has the specific authority to do the following:
        (1) Enter into contracts as are necessary or proper to carry out this chapter, subject to the approval of the commissioner.
        (2) Subject to section 2.6 of this chapter, sue or be sued, including taking any legal actions necessary or proper for recovery of any assessments for, on behalf of, or against participating carriers.
        (3) Take legal action necessary to avoid the payment of improper claims against the association or the coverage provided by or through the association.
        (4) Establish a medical review committee to determine the reasonably appropriate level and extent of health care services in each instance.
        (5) Establish appropriate rates, scales of rates, rate classifications and rating adjustments, such rates not to be unreasonable in relation to the coverage provided and the reasonable operational expenses of the association.
        (6) Pool risks among members.
        (7) Issue policies of insurance on an indemnity or provision of service basis providing the coverage required by this chapter.
        (8) Administer separate pools, separate accounts, or other plans or arrangements considered appropriate for separate members or groups of members.
        (9) Operate and administer any combination of plans, pools, or other mechanisms considered appropriate to best accomplish the fair and equitable operation of the association.
        (10) Appoint from among members appropriate legal, actuarial, and other committees as necessary to provide technical assistance in the operation of the association, policy and other contract design,

and any other function within the authority of the association.
        (11) Hire an independent consultant.
        (12) Develop a method of advising applicants of the availability of other coverages outside the association.
        (13) Provide for the use of managed care plans for insureds, including the use of:
            (A) health maintenance organizations; and
            (B) preferred provider plans.
        (14) Solicit bids directly from providers for coverage under this chapter.
        (15) Subject to section 3 of this chapter, negotiate reimbursement rates and enter into contracts with individual health care providers and health care provider groups.
    (f) Rates for coverages issued by the association may not be unreasonable in relation to the benefits provided, the risk experience, and the reasonable expenses of providing the coverage. Separate scales of premium rates based on age apply for individual risks. Premium rates must take into consideration the extra morbidity and administration expenses, if any, for risks insured in the association. The rates for a given classification may must be equal to
        (1) not more than one hundred fifty percent (150%) of the average premium rate for that class charged by the five (5) carriers with the largest premium volume in the state during the preceding calendar year. for an insured whose family income is less than three hundred fifty-one percent (351%) of the federal income poverty level for the same size family; and
        (2) an amount equal to:
            (A) not less than one hundred fifty-one percent (151%); and
            (B) not more than two hundred percent (200%);
        of the average premium rate for that class charged by the five (5) carriers with the largest premium volume in the state during the preceding calendar year, for an insured whose family income is more than three hundred fifty percent (350%) of the federal income poverty level for the same size family.
In determining the average rate of the five (5) largest carriers, the rates charged by the carriers shall be actuarially adjusted to determine the rate that would have been charged for benefits substantially identical to those issued by the association. All rates adopted by the association must be submitted to the commissioner for approval.
    (g) Following the close of the association's fiscal year, the association shall determine the net premiums, the expenses of administration, and the incurred losses for the year. Twenty-five percent (25%) of any net loss shall be assessed by the association to all members in proportion to their respective shares of total health insurance premiums as reported to the department of insurance, excluding premiums for Medicaid contracts with the state of Indiana, received in Indiana during the calendar year (or with paid losses in the year) coinciding with or ending during the fiscal year of the association. Seventy-five percent (75%) of any net loss shall be paid by the state. In sharing losses, the association may abate or defer in any part the assessment of a member, if, in the opinion of the board, payment of the assessment would endanger the ability of the member to fulfill its contractual obligations. The association may also provide for interim assessments against members of the association if necessary to assure the financial capability of the association to meet the incurred or estimated claims expenses or operating expenses of the association until the association's next fiscal year is completed. Net gains, if any, must be held at interest to offset future losses or allocated to reduce future premiums. Assessments must be determined by the board members specified in subsection (b)(1), subject to final approval by the commissioner.
    (h) The association shall conduct periodic audits to assure the general accuracy of the financial data submitted to the association, and the association shall have an annual audit of its operations by an

independent certified public accountant.
    (i) The association is subject to examination by the department of insurance under IC 27-1-3.1. The board of directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the commissioner.
    (j) All policy forms issued by the association must conform in substance to prototype forms developed by the association, must in all other respects conform to the requirements of this chapter, and must be filed with and approved by the commissioner before their use.
    (k) The association may not issue an association policy to any individual who, on the effective date of the coverage applied for, does not meet the eligibility requirements of section 5.1 of this chapter.
    (l) The association and the premium collected by the association shall be exempt from the premium tax, the adjusted gross income tax, or any combination of these upon revenues or income that may be imposed by the state.
    (m) Members who, during any calendar year, have paid one (1) or more assessments levied under this chapter may include in the rates for premiums charged for insurance policies to which this chapter applies amounts sufficient to recoup a sum equal to the amounts paid to the association by the member less any amounts returned to the member insurer by the association, and the rates shall not be deemed excessive by virtue of including an amount reasonably calculated to recoup assessments paid by the member.
    (n) The association shall provide for the option of monthly collection of premiums.
    (o) The association shall periodically certify to the budget agency the amount necessary to pay seventy-five percent (75%) of any net loss as specified in subsection (g).

SOURCE: IC 27-8-10-3; (11)PD4580.222. -->     SECTION 252. IC 27-8-10-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) An association policy issued under this chapter may pay an amount for medically necessary eligible expenses related to the diagnosis or treatment of illness or injury that exceed the deductible and coinsurance amounts applicable under section 4 of this chapter. Payment under an association policy must be based on one (1) or a combination of the following reimbursement methods, as determined by the board of directors:
        (1) The association's usual and customary fee schedule in effect on January 1, 2004. If payment is based on the usual and customary fee schedule in effect on January 1, 2004, the rates of reimbursement under the fee schedule must be adjusted annually by a percentage equal to the percentage change in the Indiana medical care component of the Consumer Price Index for all Urban Consumers, as published by the United States Bureau of Labor Statistics during the preceding calendar year.
        (2) A health care provider network arrangement. If payment is based on a health care provider network arrangement, reimbursement under an association policy must be made according to:
            (A) a network fee schedule for network health care providers and nonnetwork health care providers; and
            (B) any additional coinsurance that applies to the insured under the association policy if the insured obtains health care services from a nonnetwork health care provider.
         (3) Reimbursement for an eligible expense in an amount equal to not less than the federal Medicare reimbursement rate for the eligible expense plus ten percent (10%).
    (b) Eligible expenses are the charges for the following health care services and articles to the extent furnished by a health care provider in an emergency situation or furnished or prescribed by a physician:
        (1) Hospital services, including charges for the institution's most common semiprivate room, and for private room only when medically necessary, but limited to a total of one hundred eighty (180) days in a year.
        (2) Professional services for the diagnosis or treatment of injuries, illnesses, or conditions, other than mental or dental, that are rendered by a physician or, at the physician's direction, by the physician's staff of registered or licensed nurses, and allied health professionals.
        (3) The first twenty (20) professional visits for the diagnosis or treatment of one (1) or more mental conditions rendered during the year by one (1) or more physicians or, at their direction, by their staff of registered or licensed nurses, and allied health professionals.
        (4) Drugs and contraceptive devices requiring a physician's prescription.
        (5) Services of a skilled nursing facility for not more than one hundred eighty (180) days in a year.
        (6) Services of a home health agency up to two hundred seventy (270) days of service a year.
        (7) Use of radium or other radioactive materials.
        (8) Oxygen.
        (9) Anesthetics.
        (10) Prostheses, other than dental.
        (11) Rental of durable medical equipment which has no personal use in the absence of the condition for which prescribed.
        (12) Diagnostic X-rays and laboratory tests.
        (13) Oral surgery for:
            (A) excision of partially or completely erupted impacted teeth;
            (B) excision of a tooth root without the extraction of the entire tooth; or
            (C) the gums and tissues of the mouth when not performed in connection with the extraction or repair of teeth.
        (14) Services of a physical therapist and services of a speech therapist.
        (15) Professional ambulance services to the nearest health care facility qualified to treat the illness or injury.
        (16) Other medical supplies required by a physician's orders.
An association policy may also include comparable benefits for those who rely upon spiritual means through prayer alone for healing upon such conditions, limitations, and requirements as may be determined by the board of directors.
    (c) A managed care organization that issues an association policy may not refuse to enter into an agreement with a hospital solely because the hospital has not obtained accreditation from an accreditation organization that:
        (1) establishes standards for the organization and operation of hospitals;
        (2) requires the hospital to undergo a survey process for a fee paid by the hospital; and
        (3) was organized and formed in 1951.
    (d) This section does not prohibit a managed care organization from using performance indicators or quality standards that:
        (1) are developed by private organizations; and
        (2) do not rely upon a survey process for a fee charged to the hospital to evaluate performance.
    (e) For purposes of this section, if benefits are provided in the form of services rather than cash payments, their value shall be determined on the basis of their monetary equivalency.
    (f) The following are not eligible expenses in any association policy within the scope of this chapter:
        (1) Services for which a charge is not made in the absence of insurance or for which there is no legal obligation on the part of the patient to pay.
        (2) Services and charges made for benefits provided under the laws of the United States, including Medicare and Medicaid, military service connected disabilities, medical services provided for

members of the armed forces and their dependents or for employees of the armed forces of the United States, medical services financed in the future on behalf of all citizens by the United States.
        (3) Benefits which would duplicate the provision of services or payment of charges for any care for injury or disease either:
            (A) arising out of and in the course of an employment subject to a worker's compensation or similar law; or
            (B) for which benefits are payable without regard to fault under a coverage statutorily required to be contained in any motor vehicle or other liability insurance policy or equivalent self-insurance.
        However, this subdivision does not authorize exclusion of charges that exceed the benefits payable under the applicable worker's compensation or no-fault coverage.
        (4) Care which is primarily for a custodial or domiciliary purpose.
        (5) Cosmetic surgery unless provided as a result of an injury or medically necessary surgical procedure.
        (6) Any charge for services or articles the provision of which is not within the scope of the license or certificate of the institution or individual rendering the services.
    (g) The coverage and benefit requirements of this section for association policies may not be altered by any other inconsistent state law without specific reference to this chapter indicating a legislative intent to add or delete from the coverage requirements of this chapter.
    (h) This chapter does not prohibit the association from issuing additional types of health insurance policies with different types of benefits that, in the opinion of the board of directors, may be of benefit to the citizens of Indiana.
    (i) This chapter does not prohibit the association or its administrator from implementing uniform procedures to review the medical necessity and cost effectiveness of proposed treatment, confinement, tests, or other medical procedures. Those procedures may take the form of preadmission review for nonemergency hospitalization, case management review to verify that covered individuals are aware of treatment alternatives, or other forms of utilization review. Any cost containment techniques of this type must be adopted by the board of directors and approved by the commissioner.

SOURCE: IC 27-8-10-5.1; (11)PD4580.223. -->     SECTION 253. IC 27-8-10-5.1, AS AMENDED BY P.L.3-2008, SECTION 213, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 5.1. (a) A person is not eligible for an association policy if the person is eligible for Medicaid. any of the coverage described in subdivisions (1) and (2). A person other than a federally eligible individual may not apply for an association policy unless the person has applied for:
         (1) Medicaid; and
        (2) coverage under the:
            (A) preexisting condition insurance plan program established by the Secretary of Health and Human Services under Section 1101 of Title I of the federal Patient Protection and Affordable Care Act (P.L. 111-148); and
            (B) Indiana check-up plan under IC 12-15-44.2;

not more than sixty (60) days before applying for the association policy.
    (b) Except as provided in subsection (c), a person is not eligible for an association policy if, at the effective date of coverage, the person has or is eligible for coverage under any insurance plan that equals or exceeds the minimum requirements for accident and sickness insurance policies issued in Indiana as set forth in IC 27. However, an offer of coverage described in IC 27-8-5-2.5(e) (expired July 1, 2007, and removed), IC 27-8-5-2.7, IC 27-8-5-19.2(e) (expired July 1, 2007, and repealed), or IC 27-8-5-19.3 does not affect an individual's eligibility for an association policy under this subsection. Coverage under any

association policy is in excess of, and may not duplicate, coverage under any other form of health insurance.
    (c) Except as provided in IC 27-13-16-4 and subsection (a), a person is eligible for an association policy upon a showing that:
        (1) the person has been rejected by one (1) carrier for coverage under any insurance plan that equals or exceeds the minimum requirements for accident and sickness insurance policies issued in Indiana, as set forth in IC 27, without material underwriting restrictions;
        (2) an insurer has refused to issue insurance except at a rate exceeding the association plan rate; or
        (3) the person is a federally eligible individual.
For the purposes of this subsection, eligibility for Medicare coverage does not disqualify a person who is less than sixty-five (65) years of age from eligibility for an association policy.
    (d) Coverage under an association policy terminates as follows:
        (1) On the first date on which an insured is no longer a resident of Indiana.
        (2) On the date on which an insured requests cancellation of the association policy.
        (3) On the date of the death of an insured.
        (4) At the end of the policy period for which the premium has been paid.
        (5) On the first date on which the insured no longer meets the eligibility requirements under this section.
    (e) An association policy must provide that coverage of a dependent unmarried child terminates when the child becomes nineteen (19) years of age (or twenty-five (25) years of age if the child is enrolled full time in an accredited educational institution). The policy must also provide in substance that attainment of the limiting age does not operate to terminate a dependent unmarried child's coverage while the dependent is and continues to be both:
        (1) incapable of self-sustaining employment by reason of mental retardation or mental or physical disability; and
        (2) chiefly dependent upon the person in whose name the contract is issued for support and maintenance.
However, proof of such incapacity and dependency must be furnished to the carrier within one hundred twenty (120) days of the child's attainment of the limiting age, and subsequently as may be required by the carrier, but not more frequently than annually after the two (2) year period following the child's attainment of the limiting age.
    (f) An association policy that provides coverage for a family member of the person in whose name the contract is issued must, as to the family member's coverage, also provide that the health insurance benefits applicable for children are payable with respect to a newly born child of the person in whose name the contract is issued from the moment of birth. The coverage for newly born children must consist of coverage of injury or illness, including the necessary care and treatment of medically diagnosed congenital defects and birth abnormalities. If payment of a specific premium is required to provide coverage for the child, the contract may require that notification of the birth of a child and payment of the required premium must be furnished to the carrier within thirty-one (31) days after the date of birth in order to have the coverage continued beyond the thirty-one (31) day period.
    (g) Except as provided in subsection (h), an association policy may contain provisions under which coverage is excluded during a period of three (3) months following the effective date of coverage as to a given covered individual for preexisting conditions, as long as medical advice or treatment was recommended or received within a period of three (3) months before the effective date of coverage. This subsection may not be construed to prohibit preexisting condition provisions in an insurance policy that

are more favorable to the insured.
    (h) If a person applies for an association policy within six (6) months after termination of the person's coverage under a health insurance arrangement and the person meets the eligibility requirements of subsection (c), then an association policy may not contain provisions under which:
        (1) coverage as to a given individual is delayed to a date after the effective date or excluded from the policy; or
        (2) coverage as to a given condition is denied;
on the basis of a preexisting health condition. This subsection may not be construed to prohibit preexisting condition provisions in an insurance policy that are more favorable to the insured.
    (i) For purposes of this section, coverage under a health insurance arrangement includes, but is not limited to, coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985.

SOURCE: IC 27-8-27-6; (11)PD4580.224. -->     SECTION 254. IC 27-8-27-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. A health insurance plan that provides coverage for early intervention services shall reimburse the first steps program for payments made by the program for early intervention services that are covered under the health insurance plan. a monthly fee established by the division of disability and rehabilitative services. The monthly fee shall be provided instead of claims processing of individual claims.
SOURCE: IC 31-9-2-17.8; (11)PD4580.225. -->     SECTION 255. IC 31-9-2-17.8, AS ADDED BY P.L.146-2008, SECTION 537, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 17.8. "Child services", for purposes of this title, means the following:
        (1) Services, other than services that are costs of secure detention, specifically provided by or on behalf of the department for or on behalf of children who are:
            (A) adjudicated to be:
                (i) children in need of services under IC 31-34; or
                (ii) delinquent children under IC 31-37;
            (B) parties in a child in need of services case filed under IC 31-34 or in a delinquency case filed under IC 31-37 before adjudication or entry of a dispositional decree;
            (C) subject to temporary care or supervision by the department under any applicable provision of IC 31-33, IC 31-34, or IC 31-37;
            (D) recipients or beneficiaries of a program of informal adjustment approved under IC 31-34-8 or IC 31-37-9; or
            (E) recipients or beneficiaries of:
                (i) adoption assistance or kinship guardianship assistance under Title IV-E of the federal Social Security Act (42 U.S.C. 673), as amended;
                (ii) adoption subsidies or assistance under IC 31-19-26.5; or
                (iii) assistance, including emergency assistance or assisted guardianships, provided under Title IV-A of the federal Social Security Act (42 U.S.C. 601 et seq.), as amended; or
                 (iv) other financial assistance provided to or for the benefit of a child who was previously adjudicated as a child in need of services or delinquent child, including a legal guardianship established to implement a permanency plan under IC 31-34-21-7.5(c)(1)(E) if IC 29-3-8-9 applies and the assistance is approved under a rule or published policy of the department.
        (2) Costs of using an institution or facility for providing educational services to children described in subdivision (1)(A), under either IC 20-33-2-29 (if applicable) or IC 20-26-11-13 (if applicable).
        (3) Assistance awarded by the department to a destitute child under IC 31-26-2.
SOURCE: IC 33-24-6-12; (11)PD4580.226. -->     SECTION 256. IC 33-24-6-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) The judicial technology and automation project fund is established to fund the judicial technology and automation project. The division of state court administration shall administer the fund. The fund consists of the following:
        (1) Deposits made under IC 33-37-9-4.
        (2) Other appropriations made by the general assembly.
        (3) Grants and gifts designated for the fund or the judicial technology and automation project.
    (b) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
    (c) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    (d) There is annually appropriated to the division of state court administration the money in the fund The budget committee may release funds for the judicial technology and automation project after the division of state court administration certifies that the judicial technology automation project is in compliance with the information sharing and exchange provisions of IC 33-24-6-3(a).
SOURCE: IC 33-37-5-2; (11)PD4580.227. -->     SECTION 257. IC 33-37-5-2, AS AMENDED BY P.L.1-2006, SECTION 507, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) Each clerk shall establish a clerk's record perpetuation fund. The clerk shall deposit all the following in the fund:
        (1) Revenue received by the clerk for transmitting documents by facsimile machine to a person under IC 5-14-3.
        (2) Document storage fees required under section 20 of this chapter.
        (3) The late payment fees imposed under section 22 of this chapter that are authorized for deposit in the clerk's record perpetuation fund under IC 33-37-7-2.
        (4) The fees required under IC 29-1-7-3.1 for deposit of a will.
         (5) Automated record keeping fees deposited in the fund under IC 33-37-7-2(n).
    (b) The clerk may use any money in the fund for the following purposes:
        (1) The preservation of records.
        (2) The improvement of record keeping systems and equipment.
         (3) Case management system.
SOURCE: IC 33-37-5-21; (11)PD4580.228. -->     SECTION 258. IC 33-37-5-21, AS AMENDED BY P.L.182-2009(ss), SECTION 394, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 21. (a) This section applies to all civil, criminal, infraction, and ordinance violation actions.
    (b) The clerk shall collect an automated record keeping fee as follows:
        (1) Seven dollars ($7) after June 30, 2003, and before July 1, 2011.
        (2) Four Five dollars ($4) ($5) after June 30, 2011.
SOURCE: IC 33-37-5-21.2; (11)PD4580.229. -->     SECTION 259. IC 33-37-5-21.2, AS AMENDED BY P.L.1-2006, SECTION 509, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 21.2. (a) This subsection does not apply to the following:
        (1) A criminal proceeding.
        (2) A proceeding to enforce a statute defining an infraction.
        (3) A proceeding for an ordinance violation.
In each action filed in a court described in IC 33-37-1-1 and in each small claims action in a court described in IC 33-34, the clerk shall collect a public defense administration fee of three five dollars ($3). ($5).
    (b) In each action in which a person is:
        (1) convicted of an offense;
        (2) required to pay a pretrial diversion fee;
        (3) found to have committed an infraction; or
        (4) found to have violated an ordinance;
the clerk shall collect a public defense administration fee of three five dollars ($3). ($5).
SOURCE: IC 33-37-7-2; (11)PD4580.230. -->     SECTION 260. IC 33-37-7-2, AS AMENDED BY SEA 582-2011, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) The clerk of a circuit court shall distribute semiannually to the auditor of state as the state share for deposit in the homeowner protection unit account established by IC 4-6-12-9 one hundred percent (100%) of the automated record keeping fees collected under IC 33-37-5-21 with respect to actions resulting in the accused person entering into a pretrial diversion program agreement under IC 33-39-1-8 or a deferral program agreement under IC 34-28-5-1 and for deposit in the state general fund seventy percent (70%) of the amount of fees collected under the following:
        (1) IC 33-37-4-1(a) (criminal costs fees).
        (2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-37-4-3(a) (juvenile costs fees).
        (4) IC 33-37-4-4(a) (civil costs fees).
        (5) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
        (6) IC 33-37-4-7(a) (probate costs fees).
        (7) IC 33-37-5-17 (deferred prosecution fees).
    (b) The clerk of a circuit court shall distribute semiannually to the auditor of state for deposit in the state user fee fund established in IC 33-37-9-2 the following:
        (1) Twenty-five percent (25%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-37-4-1(b)(5).
        (2) Twenty-five percent (25%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
        (3) Fifty percent (50%) of the child abuse prevention fees collected under IC 33-37-4-1(b)(7).
        (4) One hundred percent (100%) of the domestic violence prevention and treatment fees collected under IC 33-37-4-1(b)(8).
        (5) One hundred percent (100%) of the highway work zone fees collected under IC 33-37-4-1(b)(9) and IC 33-37-4-2(b)(5).
        (6) One hundred percent (100%) of the safe schools fee collected under IC 33-37-5-18.
        (7) The following:
            (A) For a county operating under the state's automated judicial system,
one hundred percent (100%) of the automated record keeping fee (IC 33-37-5-21) not distributed under subsection (a).
            (B) For a county not operating under the state's automated judicial system, eighty percent (80%) of the automated record keeping fee (IC 33-37-5-21) not distributed under subsection (a).
    (c) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) Seventy-five percent (75%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-37-4-1(b)(5).
        (2) Seventy-five percent (75%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this subsection into the county drug free community fund established under IC 5-2-11.
    (d) The clerk of a circuit court shall distribute monthly to the county auditor fifty percent (50%) of the

child abuse prevention fees collected under IC 33-37-4-1(b)(7). The county auditor shall deposit fees distributed by a clerk under this subsection into the county child advocacy fund established under IC 12-17-17.
    (e) The clerk of a circuit court shall distribute monthly to the county auditor one hundred percent (100%) of the late payment fees collected under IC 33-37-5-22. The county auditor shall deposit fees distributed by a clerk under this subsection as follows:
        (1) If directed to do so by an ordinance adopted by the county fiscal body, the county auditor shall deposit forty percent (40%) of the fees in the clerk's record perpetuation fund established under IC 33-37-5-2 and sixty percent (60%) of the fees in the county general fund.
        (2) If the county fiscal body has not adopted an ordinance described in subdivision (1), the county auditor shall deposit all the fees in the county general fund.
    (f) The clerk of the circuit court shall distribute semiannually to the auditor of state for deposit in the sexual assault victims assistance account established by IC 5-2-6-23(h) one hundred percent (100%) of the sexual assault victims assistance fees collected under IC 33-37-5-23.
    (g) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) One hundred percent (100%) of the support and maintenance fees for cases designated as non-Title IV-D child support cases in the Indiana support enforcement tracking system (ISETS) collected under IC 33-37-5-6.
        (2) The percentage share of the support and maintenance fees for cases designated as IV-D child support cases in ISETS collected under IC 33-37-5-6 that is reimbursable to the county at the federal financial participation rate.
The county clerk shall distribute monthly to the office of the secretary of family and social services the percentage share of the support and maintenance fees for cases designated as Title IV-D child support cases in ISETS collected under IC 33-37-5-6 that is not reimbursable to the county at the applicable federal financial participation rate.
    (h) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) One hundred percent (100%) of the small claims service fee under IC 33-37-4-6(a)(1)(B) or IC 33-37-4-6(a)(2) for deposit in the county general fund.
        (2) One hundred percent (100%) of the small claims garnishee service fee under IC 33-37-4-6(a)(1)(C) or IC 33-37-4-6(a)(3) for deposit in the county general fund.
    (i) This subsection does not apply to court administration fees collected in small claims actions filed in a court described in IC 33-34. The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the state general fund one hundred percent (100%) of the following:
        (1) The public defense administration fee collected under IC 33-37-5-21.2.
        (2) The judicial salaries fees collected under IC 33-37-5-26.
        (3) The DNA sample processing fees collected under IC 33-37-5-26.2.
        (4) The court administration fees collected under IC 33-37-5-27.
    (j) The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the judicial branch insurance adjustment account established by IC 33-38-5-8.2 one hundred percent (100%) of the judicial insurance adjustment fee collected under IC 33-37-5-25.
    (k) The proceeds of the service fee collected under IC 33-37-5-28(b)(1) or IC 33-37-5-28(b)(2) shall be distributed as follows:
        (1) The clerk shall distribute one hundred percent (100%) of the service fees collected in a circuit, superior, county, or probate court to the county auditor for deposit in the county general fund.
        (2) The clerk shall distribute one hundred percent (100%) of the service fees collected in a city or

town court to the city or town fiscal officer for deposit in the city or town general fund.
    (l) The proceeds of the garnishee service fee collected under IC 33-37-5-28(b)(3) or IC 33-37-5-28(b)(4) shall be distributed as follows:
        (1) The clerk shall distribute one hundred percent (100%) of the garnishee service fees collected in a circuit, superior, county, or probate court to the county auditor for deposit in the county general fund.
        (2) The clerk shall distribute one hundred percent (100%) of the garnishee service fees collected in a city or town court to the city or town fiscal officer for deposit in the city or town general fund.
    (m) The clerk of the circuit court shall distribute semiannually to the auditor of state for deposit in the home ownership education account established by IC 5-20-1-27 one hundred percent (100%) of the following:
        (1) The mortgage foreclosure counseling and education fees collected under IC 33-37-5-30 (before its expiration on January 1, 2013).
        (2) Any civil penalties imposed and collected by a court for a violation of a court order in a foreclosure action under IC 32-30-10.5.
     (n) This subsection applies to a county that is not operating under the state's automated judicial system. The clerk of a circuit court shall distribute monthly to the county auditor twenty percent (20%) of the automated record keeping fee (IC 33-37-5-21) not distributed under subsection (a) for deposit in the clerk's record perpetuation fund.

SOURCE: IC 32-34-1-45; (11)PD4580.231. -->     SECTION 261. IC 32-34-1-45, AS AMENDED BY P.L.85-2005, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 45. (a) Except as provided in subsection (b), a holder that fails to pay or deliver the property within the time required by this chapter shall pay to the attorney general interest for the time the holder is delinquent. Interest shall accrue under this subsection at the following rates:
        (1) The annual interest rate for a period of one (1) year or less after the time required by this chapter for payment or delivery of the property is:
            (A) the one (1) year Treasury Bill rate published in the Wall Street Journal or its successor on the third Tuesday of the month in which the remittance was due; plus
            (B) one (1) percentage point.
        (2) The interest rate for each year after the initial year to which subdivision (1) applies is:
            (A) the one (1) year Treasury Bill rate published in the Wall Street Journal or its successor on the third Tuesday of the month immediately preceding the anniversary; plus
            (B) one (1) percentage point.
        As used in this subdivision, "anniversary" means the anniversary of the date on which the property was originally due to be paid or delivered under this chapter.
    (b) The attorney general may waive the payment of interest described in subsection (a), in whole or part.
    (c) A holder who fails to render any report or perform other duties required under this chapter shall pay a civil penalty of one hundred dollars ($100) for each day for the first fifteen (15) days that the report is withheld or the duty not performed. After the first fifteen (15) days, the holder shall pay a civil penalty of the greater of:
        (1) one hundred dollars ($100) a day for each additional day, not to exceed five thousand dollars ($5,000); or
        (2) ten percent (10%) of the value of the property at issue, not to exceed five thousand dollars ($5,000).
Upon a showing by the holder of good cause sufficient in the discretion of the attorney general to excuse

the failure, the attorney general may waive the penalty in whole or in part.
    (d) A holder who knowingly or intentionally fails to pay or deliver property to the attorney general as required under this chapter shall pay an additional civil penalty equal to ten percent (10%) of the value of the property that must be paid or delivered under this chapter. If the attorney general believes it is in the best interest for the administration of this chapter, the attorney general may waive the penalty in whole or in part.
    (e) (c) A holder who willfully refuses, after written demand by the attorney general, to pay or deliver property to the attorney general as required under this chapter commits a Class B misdemeanor.

SOURCE: IC 33-37-7-9; (11)PD4580.232. -->     SECTION 262. IC 33-37-7-9, AS AMENDED BY P.L.130-2009, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 9. (a) On June 30 and on December 31 of each year, the auditor of state shall transfer to the treasurer of state nine million two hundred seventy-seven thousand twenty-three dollars ($9,277,023) for distribution under subsection (b).
    (b) On June 30 and on December 31 of each year, the treasurer of state shall deposit into:
        (1) the family violence and victim assistance fund established by IC 5-2-6.8-3 an amount equal to eight and three-hundredths percent (8.03%);
        (2) the Indiana judges' retirement fund established by IC 33-38-6-12 an amount equal to thirty-eight and fifty-five hundredths percent (38.55%);
        (3) the law enforcement academy building fund established by IC 5-2-1-13 an amount equal to two and fifty-six hundredths percent (2.56%);
        (4) the law enforcement training fund established by IC 5-2-1-13 an amount equal to ten and twenty-seven hundredths percent (10.27%);
        (5) the violent crime victims compensation fund established by IC 5-2-6.1-40 an amount equal to eleven and ninety-three hundredths percent (11.93%);
        (6) the motor vehicle highway account an amount equal to nineteen and forty-nine hundredths percent (19.49%);
        (7) the fish and wildlife fund established by IC 14-22-3-2 an amount equal to twenty-five hundredths percent (0.25%);
        (8) the Indiana judicial center drug and alcohol programs fund established by IC 12-23-14-17 for the administration, certification, and support of alcohol and drug services programs under IC 12-23-14 an amount equal to one and sixty-three hundredths percent (1.63%); and
        (9) the DNA sample processing fund established under IC 10-13-6-9.5 for the funding of the collection, shipment, analysis, and preservation of DNA samples and the conduct of a DNA data base program under IC 10-13-6 an amount equal to seven and twenty-nine hundredths percent (7.29%);
of the amount transferred by the auditor of state under subsection (a).
    (c) On June 30 and on December 31 of each year, the auditor of state shall transfer to the treasurer of state for deposit into the public defense fund established under IC 33-40-6-1
        (1) after June 30, 2004, and before July 1, 2005, one million seven hundred thousand dollars ($1,700,000); and
        (2) after June 30, 2005, two three million seven hundred thousand dollars ($2,700,000). ($3,700,000).
SOURCE: IC 33-37-8-4; (11)PD4580.233. -->     SECTION 263. IC 33-37-8-4, AS AMENDED BY P.L.176-2005, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) Except as provided in subsection (b), upon receipt of monthly claims submitted on oath to the fiscal body by a program listed in section 3(b) of this chapter, the fiscal body of the city or town shall appropriate from the city or town fund to the program the amount collected for the program fee under IC 33-37-5.
    (b) Funds derived from a deferral program or a pretrial diversion program may be used only disbursed only by the adoption of an ordinance appropriating the funds for one (1) or more of the following purposes:
        (1) Personnel expenses related to the operation of the program.
        (2) Special training for:
            (A) a prosecuting attorney;
            (B) a deputy prosecuting attorney;
            (C) support staff for a prosecuting attorney or deputy prosecuting attorney; or
            (D) a law enforcement officer.
        (3) Employment of a deputy prosecutor or prosecutorial support staff.
        (4) Victim assistance.
        (5) Electronic legal research.
        (6) Office equipment, including computers, computer software, communication devices, office machinery, furnishings, and office supplies.
        (7) Expenses of a criminal investigation and prosecution.
        (8) An activity or program operated by the prosecuting attorney that is intended to reduce or prevent criminal activity, including:
            (A) substance abuse;
            (B) child abuse;
            (C) domestic violence;
            (D) operating while intoxicated; and
            (E) juvenile delinquency.
        (9) Any other purpose that benefits the office of the prosecuting attorney or law enforcement and that is agreed upon by the county fiscal body and the prosecuting attorney.
    (c) Funds described in subsection (b) may be used only in accordance with guidelines adopted by the prosecuting attorneys council under IC 33-39-8-5.
SOURCE: IC 33-37-8-6; (11)PD4580.234. -->     SECTION 264. IC 33-37-8-6, AS AMENDED BY P.L.176-2005, SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) Except as provided in subsection (b), upon receipt of monthly claims submitted on oath to the fiscal body by a program listed in section 5(b) of this chapter, the county fiscal body shall appropriate from the county fund to the program or fund the amount collected for the program under IC 33-37-5.
    (b) Funds derived from a deferral program or a pretrial diversion program may be used only disbursed only by the adoption of an ordinance appropriating the funds for one (1) or more of the following purposes:
        (1) Personnel expenses related to the operation of the program.
        (2) Special training for:
            (A) a prosecuting attorney;
            (B) a deputy prosecuting attorney;
            (C) support staff for a prosecuting attorney or deputy prosecuting attorney; or
            (D) a law enforcement officer.
        (3) Employment of a deputy prosecutor or prosecutorial support staff.
        (4) Victim assistance.
        (5) Electronic legal research.
        (6) Office equipment, including computers, computer software, communication devices, office machinery, furnishings, and office supplies.
        (7) Expenses of a criminal investigation and prosecution.
        (8) An activity or program operated by the prosecuting attorney that is intended to reduce or prevent criminal activity, including:
            (A) substance abuse;
            (B) child abuse;
            (C) domestic violence;
            (D) operating while intoxicated; and
            (E) juvenile delinquency.
        (9) Any other purpose that benefits the office of the prosecuting attorney or law enforcement and that is agreed upon by the county fiscal body and the prosecuting attorney.
    (c) Funds described in subsection (b) may be used only in accordance with guidelines adopted by the prosecuting attorneys council under IC 33-39-8-5.
SOURCE: IC 33-38-5-8.1; (11)PD4580.235. -->     SECTION 265. IC 33-38-5-8.1, AS ADDED BY P.L.159-2005, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8.1. (a) Beginning July 1, 2006, Except as otherwise provided in this section, the part of the total salary of an official:
        (1) paid by the state; and
        (2) set under section 6 or 8 of this chapter;
is increased in each state fiscal year in which the general assembly does not amend the section of law under which the salary is determined to provide a salary increase for the state fiscal year.
    (b) The percentage by which salaries are increased in a state fiscal year under this section is equal to the statewide average percentage, as determined by the budget director, by which the salaries of state employees in the executive branch who are in the same or a similar salary bracket exceed, for the state fiscal year, the salaries of executive branch state employees in the same or a similar salary bracket that were in effect on July 1 of the immediately preceding state fiscal year.
    (c) The amount of a salary increase under this section is equal to the amount determined by applying the percentage increase for the particular state fiscal year to the salary payable by the state, as previously adjusted under this section, that is in effect on June 30 of the immediately preceding state fiscal year. However, a salary increase that would otherwise occur under this section in the state fiscal year beginning July 1, 2011, or in the state fiscal year beginning July 1, 2012, shall not occur unless the increase for that state fiscal year is approved by the chief justice of the supreme court.
    (d) An official is not entitled to receive a salary increase under this section in a state fiscal year in which state employees described in subsection (b) do not receive a statewide average salary increase.
    (e) If a salary increase is required under this section, the budget director shall augment judicial appropriations, including the line items for personal services for the supreme court, local judges' salaries, and county prosecutors' salaries, in the state biennial budget in an amount sufficient to pay for the salary increase from the sources of funds determined by the budget director.
SOURCE: IC 36-7-11.5-11; (11)PD4580.236. -->     SECTION 266. IC 36-7-11.5-11, AS AMENDED BY P.L.96-2010, SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. (a) As used in this section, "fund" refers to the West Baden Springs historic hotel preservation and maintenance fund established by subsection (b).
    (b) The West Baden Springs historic hotel preservation and maintenance fund is established. The fund consists of the following:
        (1) Amounts deposited in the fund under IC 4-33-6.5-6, IC 4-33-12-6(c), and IC 4-33-13-5(b).
        (2) Grants and gifts that the department of natural resources receives for the fund under terms, obligations, and liabilities that the department considers appropriate.
        (3) The one million dollar ($1,000,000) initial fee paid to the gaming commission under IC 4-33-6.5.
        (4) Any amount transferred to the fund upon the repeal of IC 36-7-11.5-8 (the community trust fund).
The fund shall be administered by the department of natural resources. The expenses of administering the fund shall be paid from money in the fund.
    (c) The treasurer of state shall invest the money in the fund that is not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. The treasurer of state shall deposit in the fund the interest that accrues from the investment of the fund.
    (d) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
    (e) The interest accruing to the fund is annually appropriated to the department of natural resources only for the following purposes:
        (1) To reimburse claims made for expenditures to maintain a qualified historic hotel, as determined by the owner of the hotel riverboat resort.
        (2) To reimburse claims made for expenditures to maintain:
            (A) the grounds surrounding a qualified historic hotel;
            (B) supporting buildings and structures related to a qualified historic hotel; and
            (C) other facilities used by the guests of the qualified historic hotel;
        as determined by the owner of the hotel riverboat resort.
    (f) The department of natural resources shall promptly pay each claim for a purpose described in subsection (e) to the extent of the balance of interest available in the fund, without review or approval of the project or claim under IC 14-21 or IC 36-7-11. IC 14-21-1-18 does not apply to projects or claims paid for maintenance under this section. If insufficient money is available to fully pay all of the submitted claims, the department of natural resources shall pay the claims in the order in which they are received until each claim is fully paid.
    (g) Notwithstanding IC 4-9.1-1-7, IC 4-12-1-12, IC 4-13-2-18, or any other law, interest accruing to the fund may not be withheld, transferred, assigned, or reassigned to a purpose other than the reimbursement of claims under subsection (f).
SOURCE: IC 36-10-8-4; (11)PD4580.237. -->     SECTION 267. IC 36-10-8-4, AS AMENDED BY P.L.176-2009, SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) The board is composed of seven (7) members.
    (b) The county executive shall determine in the creating ordinance which units within the county shall make appointments to the board. In addition, the creating ordinance must provide that no more than four (4) of the members be affiliated with the same political party. The creating ordinance must also provide staggered terms for the appointments.
    (c) Notwithstanding subsection (b), if a board was created under IC 18-7-18 (before its repeal on February 24, 1982), three (3) members shall be appointed by the executive of the second class city and three (3) members shall be appointed by the executive of the county. Those members shall select the seventh member, who serves as president. One (1) of the members appointed by the city executive must be engaged in the hotel or motel business hospitality industry in the city. No more than two (2) of the members appointed by the city executive may be affiliated with the same political party and no more than two (2) of the members appointed by the county executive may be affiliated with the same political party. In addition, each member must have been a resident of the county for at least one (1) year immediately preceding his the member's appointment. Initial terms of the members are as follows:
        (1) One (1) of the members appointed by each appointing authority for a term ending January 15 of the year following the appointment.
        (2) Two (2) of the members appointed by each appointing authority for a term ending January 15 of the second year following the appointment.
        (3) The seventh member serves for a term ending January 15 of the second year following the appointment.
    (d) Subsequent terms of members are for two (2) years. beginning All terms begin on January 15. and A member serves until a successor is appointed and qualified. A member may be reappointed after his the member's term has expired.
    (e) If a vacancy occurs on the board, the appointing authority shall appoint a new member. That member serves for the remainder of the vacated term.
    (f) A board member may be removed for cause by the appointing authority who appointed him. the member.
    (g) Each member, before entering upon his the member's duties, shall take and subscribe an oath of office in the usual form. The oath shall be endorsed upon his the member's certificate of appointment. The certificate shall be promptly filed with the records of the board. However, if the board was created under IC 18-7-18 (before its repeal on February 24, 1982), the certificate shall be filed with the clerk of the circuit court of the county in which the board is created.
    (h) A member may not receive a salary, but is entitled to reimbursement for any expenses necessarily incurred in the performance of his the member's duties.
SOURCE: IC 4-12-4-1; IC 4-12-4-4; IC 4-12-4-5; IC 4-12-4-6; IC 4-12-4-7; IC 4-12-4-8.
; (11)PD4580.238. -->     SECTION 268. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 4-12-4-1; IC 4-12-4-4; IC 4-12-4-5; IC 4-12-4-6; IC 4-12-4-7; IC 4-12-4-8.
SOURCE: IC 4-15-1; IC 4-15-1.8; IC 4-15-2; IC 4-15-2.5; IC 4-15-3; IC 4-15-4; IC 4-15-9.
; (11)PD4580.239. -->     SECTION 269. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 4-15-1; IC 4-15-1.8; IC 4-15-2; IC 4-15-2.5; IC 4-15-3; IC 4-15-4; IC 4-15-9.
SOURCE: IC 12-15-13-3; (11)PD4580.240. -->     SECTION 270. IC 12-15-13-3 IS REPEALED [EFFECTIVE JULY 1, 2011].
SOURCE: IC 12-8-3; SEA 577-2011, $ECTION 12; SEA 577-2011, $ECTION 23.
; (11)PD4580.241. -->     SECTION 271. THE FOLLOWING ARE REPEALED [EFFECTIVE UPON PASSAGE] IC 12-8-3; SEA 577-2011, SECTION 12; SEA 577-2011, SECTION 23.
SOURCE: IC 12-10-6-3; IC 12-10-6-14; IC 12-15-5-6; IC 12-17.6-4-10.
; (11)PD4580.242. -->     SECTION 272. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 12-10-6-3; IC 12-10-6-14; IC 12-15-5-6; IC 12-17.6-4-10.
SOURCE: IC 12-28-5-1; IC 12-28-5-2; IC 12-28-5-3; IC 12-28-5-4; IC 12-28-5-5; IC 12-28-5-6; IC 12- 28-5-7; IC 12-28-5-8; IC 12-28-5-9; IC 12-28-5-15.
; (11)PD4580.243. -->     SECTION 273. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 12-28-5-1; IC 12-28-5-2; IC 12-28-5-3; IC 12-28-5-4; IC 12-28-5-5; IC 12-28-5-6; IC 12-28-5-7; IC 12-28-5-8; IC 12-28-5-9; IC 12-28-5-15.
SOURCE: IC 20-20-36.2; IC 20-29-8-12; IC 20-40-8-22; IC 20-40-16.
; (11)PD4580.244. -->     SECTION 274. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 20-20-36.2; IC 20-29-8-12; IC 20-40-8-22; IC 20-40-16.
SOURCE: IC 20-33-5-8; IC 20-33-5-10.
; (11)PD4580.245. -->     SECTION 275. THE FOLLOWING ARE REPEALED [EFFECTIVE JULY 1, 2011]: IC 20-33-5-8; IC 20-33-5-10.
SOURCE: IC 20-43-1-12; IC 20-43-1-17; IC 20-43-1-21.5; IC 20-43-1-32; IC 20-43-3-2; IC 20-43-12; IC 20-43-12.2.
; (11)PD4580.246. -->     SECTION 276. THE FOLLOWING ARE REPEALED [EFFECTIVE JANUARY 1, 2012]: IC 20-43-1-12; IC 20-43-1-17; IC 20-43-1-21.5; IC 20-43-1-32; IC 20-43-3-2; IC 20-43-12; IC 20-43-12.2.
SOURCE: ; (11)PD4580.247. -->     SECTION 277. P.L.224-2003, SECTION 116 IS AMENDED TO READ AS FOLLOWS. [EFFECTIVE UPON PASSAGE]: (a) The budget agency shall cause fifty million dollars ($50,000,000) to be transferred from the public depository insurance fund to the state general fund in the state fiscal year beginning July 1, 2003, and ending June 30, 2004, with the following conditions:
        (1) The transfer required under this SECTION is an interest free loan from the public depository insurance fund to the state general fund.
        (2) If before January 1, 2013, 2023, the governor, on the advice of the budget agency, makes a determination that the general fund has a balance sufficient to repay the loan, the budget agency shall establish a repayment plan under which the loan is repaid either in one (1) installment or in a number of installments determined by the budget agency. Money sufficient to make the installments under a repayment plan established under this subsection is appropriated from the general fund.
        (3) If the governor, on the advice of the budget agency, has not made a determination prior to January 1, 2013, 2023, to repay the interest free loan to the public depository insurance fund, the budget agency shall include a request for funds to repay the loan in the budget agency budget request submitted to the 2013 2023 session of the general assembly.
    (b) The budget agency shall cause the following transfers to be made from the specified funds to the state general fund in the specified state fiscal years:
        (1) Two million dollars ($2,000,000) from the industrial industries fund in the state fiscal year beginning July 1, 2003, and ending June 20, 2004.
        (2) Two million four hundred thousand dollars ($2,400,000) from the industrial industries fund in the state fiscal year beginning July 1, 2004, and ending June 30, 2005.
        (3) Two million five hundred thousand dollars ($2,500,000) from the administrative services fund in the state fiscal year beginning July 1, 2004, and ending June 30, 2005.
    (c) This SECTION expires July 1, 2013. 2023.
SOURCE: ; (11)PD4580.248. -->     SECTION 278. P.L.73-2008, SECTION 1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: SECTION 1. (a) As used in this SECTION, "division" refers to the division of disability and rehabilitative services established by IC 12-9-1-1.
    (b) As used in this SECTION, "office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.
    (c) As used in this SECTION, "waiver" refers to any waiver administered by the office and the division under section 1915(c) of the federal Social Security Act.
    (d) Before July 1, 2008, the office shall apply to the United States Department of Health and Human Services for approval to amend a waiver to set priorities as described in subsection (e) in providing services under the waiver.
    (e) The waiver amendment must provide for the following individuals to be given priority in receiving services under the waiver:
(1) An individual who is determined by the state department of health to no longer need or receive active treatment provided in a supervised group living setting.
(2) An individual who is receiving service under the direction of the division in a supervised group living setting, nursing facility, or large private intermediate care facility and has a history of unexplained injuries or documented abuse that is substantiated by the division and that threatens the health and welfare of the individual.
(3) A current resident, or the guardian of a resident who is incapacitated, of a large, private intermediate care facility for the mentally retarded who requests to leave the facility.
(4) An individual who will be attaining the maximum age for a residential or group home setting funded by the department of education, the division of family resources, or the office.
(5) An individual for whom the primary caregiver of the individual is no longer able to care for the individual due to:
(A) the death of the primary caregiver;
(B) the long term institutionalization of the primary caregiver;
(C) the long term incapacitation of the primary caregiver; or
(D) the long term incarceration of the primary caregiver.
        (6) An individual who is on the waiver waiting list and has
        been determined to have a shortened life span as defined by
        the division.
(7) Any other priority as determined by the division.
    (f) The office may not implement the amendment to the waiver until the office files an affidavit with the governor attesting that the amendment to the federal waiver applied for under this SECTION is in effect. The office shall file the affidavit under this subsection not later than five (5) days after the office is notified that the waiver amendment is approved.
    (g) If the office receives approval for the amendment to the waiver under this SECTION from the United States Department of Health and Human Services and the governor receives the affidavit filed under subsection (f), the office shall implement the amendment to the waiver not more than sixty (60) days after the governor receives the affidavit.
    (d) Before October 1, 2011, the office shall apply to the United States Department of Health and Human Services for approval to amend a waiver to set an emergency placement priority for individuals in the following situations:
        (1) Death of a primary caregiver where alternative placement in a supervised group living setting:
            (A) is not available; or
            (B) is determined by the division to be an inappropriate option.
        (2) A situation in which:
            (A) the primary caregiver is at least eighty (80) years of age; and
            (B) alternate placement in a supervised group living setting is not available or is determined by the division to be an inappropriate option.
        (3) There is evidence of abuse or neglect in the current institutional or home placement, and alternate placement in a supervised group living setting is not available or is determined by the division to be an inappropriate option.
        (4) There are other health and safety risks, as determined by the division director, and alternate placement in a supervised group living setting is not available or is determined by the division to be an inappropriate option.

    (h) (e) The division shall report on a quarterly basis the following information to the division of disability and rehabilitative services advisory council established by IC 12-9-4-2 concerning each Medicaid waiver for which the office has been approved under this section to administer an emergency placement priority for individuals described in this section:
        (1) The number of applications for emergency placement priority waivers.
        (2) The number of individuals served on the waiver.
        (3) The number of individuals on a wait list for the waiver.
    (f)
The office may adopt rules under IC 4-22-2 necessary to implement this SECTION.
    (i) (g) This SECTION expires July 1, 2016.
SOURCE: ; (11)PD4580.249. -->     SECTION 279. P.L.182-2009(ss), SECTION 486, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: SEC. 486. (a) As used in this SECTION, "continuing care retirement community" means a health care facility that:
        (1) provides independent living services and health facility services in a campus setting with common areas;
        (2) holds continuing care agreements with at least twenty-five percent (25%) of its residents (as defined in IC 23-2-4-1);
        (3) uses the money from the agreements described in subdivision (2) to provide services to the resident before the resident may be eligible for Medicaid under IC 12-15; and
        (4) meets the requirements of IC 23-2-4.
    (b) As used in this SECTION, "health facility" refers to a health facility that is licensed under IC 16-28

as a comprehensive care facility.
    (c) As used in this SECTION, "nursing facility" means a health facility that is certified for participation in the federal Medicaid program under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.).
    (d) As used in this SECTION, "office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.
    (e) Effective August 1, After July 31, 2003, and before August 1, 2011, the office shall collect a quality assessment from each health facility under this SECTION. The office shall offset the collection of the assessment for a health facility:
        (1) against a Medicaid payment to the health facility by the office; or
        (2) in another manner determined by the office.
    (f) The office shall implement the waiver approved by the United States Centers for Medicare and Medicaid Services that provides for an exemption from collection of a quality assessment from the following:
        (1) A continuing care retirement community as follows:
            (A) A continuing care retirement community that was registered with the securities commissioner as a continuing care retirement community on January 1, 2007, is not required to meet the definition of a continuing care retirement community in subsection (a).
            (B) A continuing care retirement community that, for the period January 1, 2007, through June 30, 2009, operates independent living units, at least twenty-five percent (25%) of which are provided under contracts that require the payment of a minimum entrance fee of at least twenty-five thousand dollars ($25,000).
            (C) An organization registered under IC 23-2-4 before July 1, 2009, that provides housing in an independent living unit for a religious order.
            (D) A continuing care retirement community that meets the definition set forth in subsection (a).
        (2) A hospital based health facility.
        (3) The Indiana Veterans' Home.
Any revision to the state plan amendment or waiver request under this subsection is subject to and must comply with the provisions of this SECTION.
    (g) If the United States Centers for Medicare and Medicaid Services determines not to approve payments under this SECTION using the methodology described in subsections (d) and (e), the office shall revise the state plan amendment and waiver request submitted under this SECTION as soon as possible to demonstrate compliance with 42 CFR 433.68(e)(2)(ii) and to provide for collection of a quality assessment from health facilities effective August 1, 2003.
    (h) The money collected from the quality assessment may be used only to pay the state's share of the costs for Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.) as follows:
        (1) At the following percentages when the state's regular federal medical assistance percentage (FMAP) applies, excluding the time frame in which the adjusted FMAP is provided to the state by the federal American Recovery and Reinvestment Act of 2009:
            (A) Twenty percent (20%) as determined by the office.
            (B) Eighty percent (80%) to nursing facilities.
        (2) At the following percentages when the state's federal medical assistance percentage (FMAP) is adjusted by the federal American Recovery and Reinvestment Act of 2009:
            (A) Forty percent (40%) as determined by the office.


            (B) Sixty percent (60%) to nursing facilities.
    (i) After:
        (1) the amendment to the state plan and waiver request submitted under this SECTION is approved by the United States Centers for Medicare and Medicaid Services; and
        (2) the office calculates and begins paying enhanced reimbursement rates set forth in this SECTION;
the office shall begin the collection of the quality assessment set under this SECTION. The office may establish a method to allow a facility to enter into an agreement to pay the quality assessment collected under this SECTION subject to an installment plan.
    (j) If federal financial participation becomes unavailable to match money collected from the quality assessments for the purpose of enhancing reimbursement to nursing facilities for Medicaid services provided under Title XIX of the federal Social Security Act (42 U.S.C. 1396 et seq.), the office shall cease collection of the quality assessment under this SECTION.
    (k) To implement this SECTION, the office shall adopt rules under IC 4-22-2.
    (l) Not later than July 1, 2003, the office shall do the following:
        (1) Request the United States Department of Health and Human Services under 42 CFR 433.72 to approve waivers of 42 CFR 433.68(c) and 42 CFR 433.68(d) by demonstrating compliance with 42 CFR 433.68(e)(2)(ii).
        (2) Submit any state Medicaid plan amendments to the United States Department of Health and Human Services that are necessary to implement this SECTION.
    (m) After approval of the waivers and state Medicaid plan amendment applied for under this SECTION, the office shall implement this SECTION effective July 1, 2003.
    (n) The select joint commission on Medicaid oversight, established by IC 2-5-26-3, shall review the implementation of this SECTION. The office may not make any change to the reimbursement for nursing facilities unless the select joint commission on Medicaid oversight recommends the reimbursement change.
    (o) A nursing facility or a health facility may not charge the facility's residents for the amount of the quality assessment that the facility pays under this SECTION.
    (p) The office may withdraw a state plan amendment submitted under this SECTION only if the office determines that failure to withdraw the state plan amendment will result in the expenditure of state funds not funded by the quality assessment.
    (q) If a health facility fails to pay the quality assessment under this SECTION not later than ten (10) days after the date the payment is due, the health facility shall pay interest on the quality assessment at the same rate as determined under IC 12-15-21-3(6)(A).
    (r) The office shall report to the state department of health each nursing facility and each health facility that fails to pay the quality assessment under this SECTION not later than one hundred twenty (120) days after payment of the quality assessment is due.
    (s) The state department of health shall do the following:
        (1) Notify each nursing facility and each health facility reported under subsection (r) that the nursing facility's or health facility's license under IC 16-28 will be revoked if the quality assessment is not paid.
        (2) Revoke the nursing facility's or health facility's license under IC 16-28 if the nursing facility or the health facility fails to pay the quality assessment.
    (t) An action taken under subsection (s)(2) is governed by:
        (1) IC 4-21.5-3-8; or
        (2) IC 4-21.5-4.
    (u) The office shall report the following information to the select joint commission on Medicaid

oversight established by IC 2-5-26-3 at every meeting of the commission:
        (1) Before the quality assessment is approved by the United States Centers for Medicare and Medicaid Services:
            (A) an update on the progress in receiving approval for the quality assessment; and
            (B) a summary of any discussions with the United States Centers for Medicare and Medicaid Services.
        (2) After the quality assessment has been approved by the United States Centers for Medicare and Medicaid Services:
            (A) an update on the collection of the quality assessment;
            (B) a summary of the quality assessment payments owed by a nursing facility or a health facility; and
            (C) any other relevant information related to the implementation of the quality assessment.
    (v) This SECTION expires August 1, 2011.

SOURCE: ; (11)PD4580.250. -->     SECTION 280. [EFFECTIVE UPON PASSAGE] (a) The Council of State Governments is exempt from the gross retail and use taxes imposed under IC 6-2.5 for any transaction in which food or beverage is furnished, prepared, or served to any person under a contract with the Council of State Governments in connection with the sixty-sixth annual meeting of the Midwestern Legislative Conference to be held in July 2011. A caterer or other contractor is not required to collect or remit taxes under IC 6-2.5 or IC 6-9 for a transaction that is exempt under this SECTION. If the Council of State Governments provides an exemption certificate issued under IC 6-2.5 to a caterer or other contractor for a transaction that is exempt under this SECTION, the caterer or other contractor shall not collect or remit any taxes that would otherwise be imposed under IC 6-2.5 or IC 6-9 for the transaction.
    (b) The exemption provided under this SECTION does not apply to any purchase by attendees that is not paid for directly by the Council of State Governments.
    (c) The general assembly finds that:
        (1) the general assembly is a member of the Council of State Governments and the host for the Midwestern Legislative Conference to be held in July 2011;
        (2) notwithstanding the exemptions provided in this SECTION, the sixty-sixth annual meeting of the Midwestern Legislative Conference will generate a significant economic impact for Indiana and additional revenues from taxes affected by this SECTION; and
        (3) the exemptions provided in this SECTION will not reduce or adversely affect the levy and collection of taxes pledged to the payment of bonds, notes, leases, or subleases payable from those taxes.
    (d) This SECTION expires September 1, 2011.

SOURCE: ; (11)PD4580.251. -->     SECTION 281. [EFFECTIVE UPON PASSAGE] (a) The following definitions apply to this SECTION:
        (1) "Committee" refers to the hospital assessment fee committee established by this SECTION.
        (2) "Fee" refers to the hospital assessment fee authorized by this SECTION.
        (3) "Fee period" means the two (2) year state fiscal year period beginning July 1, 2011, and ending June 30, 2013.
        (4) "Hospital" means
an entity that meets the definition set forth in IC 16-18-2-179(b) and is licensed under IC 16-21-2. This term may include a private psychiatric hospital licensed under IC 12-25. The term does not include the following:
            (A) A state mental health institution operated under IC 12-24-1-3.
            (B) A hospital:
                (i) designated by the Medicaid program as a long term care hospital;
                (ii) that has an average inpatient length of stay that is greater than twenty-five (25) days, as determined by the office of Medicaid policy and planning under the Medicaid program;
                (iii) that is a Medicare certified, freestanding rehabilitation hospital; or
                (iv) that is a hospital operated by the federal government.
        (5) "Office" refers to the office of Medicaid policy and planning established by IC 12-8-6-1.
    (b) Subject to subsections (c) and (g), the office may charge a hospital assessment fee to hospitals under this SECTION during the fee period if the following conditions are met:
        (1) The fee may be used only for the purposes described in subsections (h)(1), (k), (m), and (p).
        (2) The Medicaid state plan amendments and waiver requests required for the implementation of this SECTION are submitted by the office to the United States Department of Health and Human Services before October 1, 2011.
        (3) The United States Department of Health and Human Services approves the Medicaid state plan amendments and waiver requests described in subdivision (2) not later than October 1, 2012, and with a retroactive implementation of July 1, 2011.
        (4) The funds generated from the fee do not revert to the general fund.
    (c) The office shall stop collecting a fee, the programs described in subsection (f) shall be reconciled and terminated, and the operation of subsection (m) shall end if any of the following occur:
        (1) An appellate court makes a final determination that either:
            (A) the fee described in this SECTION; or
            (B) any of the programs described in subsection (f);
        cannot be implemented or maintained.
        (2) The United States Department of Health and Human Services makes a final determination that the Medicaid state plan amendments or waivers submitted under subsection (b) are not approved or cannot be validly implemented.
        (3) The fee is not collected because of circumstances described in subsection (i).
    (d) The office shall keep records of the fees collected by the office and report the amount of fees collected under this SECTION. The office may not assess a fee described in this SECTION to a hospital after the fee period.
    (e) The hospital assessment fee committee is established. The committee consists of the following four (4) voting members:
        (1) The secretary of family and social services established by IC 12-8-1-1 or the secretary's designee, who shall serve as the chair of the committee.
        (2) The budget director or the budget director's designee.
        (3) Two (2) members appointed by the governor from a list of at least four (4) individuals submitted by the Indiana hospital association.
The committee shall review any Medicaid state plan amendments, waiver requests, or any revisions to any Medicaid state plan amendments or waiver requests, to implement or continue the implementation of this SECTION for the purpose of establishing favorable review of the amendments, requests, and revisions by the United States Department of Health and Human Services. The committee shall meet at the call of the chair. The members shall serve without compensation. A quorum consists of at least three (3) members. An affirmative vote of at least three (3) members of the committee are necessary to approve Medicaid state plan amendments or waiver requests.
    (f) Subject to subsection (g), the office shall develop the following programs designed to increase, to the extent allowable under federal law, Medicaid reimbursement for inpatient and outpatient hospital services provided by a hospital during the fee period to Medicaid recipients:
        (1) A program concerning reimbursement for the Medicaid fee-for-service program that, in the aggregate, will result in payments equivalent to the level of reimbursement that would be paid under federal Medicare payment principles.
        (2) A program concerning reimbursement for the Medicaid risk based managed care program that, in the aggregate, will result in payments equivalent to the level of reimbursement that would be paid under federal Medicare payment principles.
    (g) The office shall not submit to the United States Department of Health and Human Services any Medicaid state plan amendments, waiver requests, or any revisions to any Medicaid state plan amendments or waiver requests, to implement or continue the implementation of this SECTION until the committee has reviewed and approved the amendments, waivers, or revisions described in this subsection and submitted a written report to the state budget committee concerning the amendments, waivers, or revisions described in this subsection, including the following:
        (1) The methodology to be used by the office in calculating the increased Medicaid reimbursement under the programs described in subsection (f).
        (2) The methodology to be used by the office in calculating, imposing, collecting, or any other matter relating to the fee authorized by this SECTION.
        (3) The determination of Medicaid disproportionate share allotments for the fee period under subsection (m) that are to be funded by the fee authorized by this SECTION, including the formula for distributing the Medicaid disproportionate share payments.
        (4) The distribution to private psychiatric institutions under subsection (o).
    (h) This subsection applies to the programs described in subsection (f). The state share dollars for the programs shall consist of the following:
        (1) Fees paid under this SECTION.
        (2) The hospital care for the indigent funds allocated under subsection (l).
        (3) Other sources of state share dollars available to the office, excluding intergovernmental transfers of funds made by or on behalf of a hospital.
The money described in subdivisions (1) and (2) may be used only to fund the portion of the payments that are in excess to the Medicaid reimbursement rates in effect on June 30, 2011.
    (i) This subsection applies to the programs described in subsection (f). If the state is unable to maintain the funding under subsection (h)(3) for the payments at Medicaid reimbursement levels in effect on June 30, 2011, because of budgetary constraints, the office shall reduce inpatient and outpatient hospital Medicaid reimbursement rates under subsection (f)(1) or (f)(2) or request from the committee and the United States Department of Health and Human Services to increase the fee to prevent a decrease in Medicaid reimbursement for hospital services. If the:
        (1) committee:
            (A) does not approve a reimbursement reduction; or
            (B) does not approve an increase in the fee; or
        (2) the United States Department of Health and Human Services does not approve an increase in the fee;
the office shall cease to collect the fee
and the programs described in subsection (f) shall end.
    (j) Before August 1, 2011, the office, after review by the committee, shall submit to the budget committee established under IC 4-12-1-3 a written report that includes the following concerning the program described in subsection (f)(2):
        (1) A reasonable estimate of the Medicaid managed care organization payments for hospital services during the fee period that will be attributable to state share dollars resulting from the fee to be collected under this SECTION. The estimate may not include payments for services provided to:
            (A) adults enrolled in the Indiana check-up plan established by IC 12-15-44.2; or
            (B) individuals enrolled in Medicaid who would have been receiving services under the Medicaid fee-for-service program before changes to state or federal law or policies that occur after March 1, 2011.
        (2) The extent to which payments under the program will be limited by or otherwise affected by the Indiana "Special Terms and Conditions" Medicaid demonstration project (Number 11-W-00237/5), including any:
            (A) trend rate amount or percentage;
            (B) per member per month amount; or
            (C) other limitations established by this demonstration project.
        (3) Detailed explanations of any estimates, calculations, and conclusions included in the report.
    (k) This subsection is effective upon implementation of the fee. The hospital Medicaid fee fund is established for the purpose of holding fees collected under this SECTION that are not necessary to match federal funds. The office shall administer the fund. Money in the fund at the end of a state fiscal year does not revert to the state general fund. However, money remaining in the fund after June 30, 2012, shall be used for the payments described in subsections (f) and (m). Any money not required for the payments described in subsections (f) and (m) upon the expiration of this SECTION or at the cessation of collection of the fee under subsection (c) shall be distributed to the hospitals on a pro rata basis based upon the fees paid by each hospital.
    (l) This subsection:
        (1) is effective upon implementation of the fee authorized by this SECTION; and
        (2) does not apply to funds under IC 12-16-17.
Notwithstanding any other law, the portion of the amounts appropriated for or transferred to the hospital care for the indigent program for the fee period that are not required to be paid to the office by law shall be used exclusively as state share dollars for the payments described in subsections (f) and (m). Any hospital care for the indigent funds that are not required for the payments described in subsections (f) and (m) upon the expiration of this SECTION or the cessation of the collection of the fee shall be used for the state share dollars of the payments in IC 12-15-20-2(8)(G)(ii) through IC 12-15-20-2(8)(G)(x).
    (m) This subsection:
        (1) is effective upon the implementation of the fee authorized by this SECTION; and
        (2) applies to the Medicaid disproportionate share payments for the fee period.
The state share dollars used to fund disproportionate share payments to acute care hospitals licensed under IC 16-21-2 that qualify as disproportionate share providers or municipal disproportionate share providers under IC 12-15-16-1(a) or IC 12-15-16-1(b) shall be paid with money collected by the fee under this SECTION and the hospital care for the indigent dollars described in subsection (l). Subject to subsection (n) and except as provided in subsection (n), the federal Medicaid disproportionate share allotments for the fee period shall be allocated in their entirety to acute care hospitals licensed under IC 16-21-2 that qualify as disproportionate share providers or municipal disproportionate share providers under IC 12-15-16-1(a) or IC 12-15-16-1(b). No portion of the federal disproportionate share allotments applicable for disproportionate share payments for the fee period shall be allocated to institutions for mental disease or other mental health facilities, as

defined by applicable federal law.
    (n) For purposes of this SECTION, the entire federal Medicaid disproportionate share allotment for Indiana during the fee period does not include the portion of allotments that are required to be diverted under the following:
        (1) The federally-approved Indiana "Special Terms and Conditions" Medicaid demonstration project (Number 11-W-00237/5).
        (2) Any extension past December 31, 2012 of the Indiana check-up plan Medicaid waiver established by IC 12-15-44.2.
The office shall inform the committee and the state budget committee concerning any extension of the Indiana check-up plan past December 31, 2012.
    (o) Notwithstanding IC 12-15-16-6(c), for the fee period, the annual two million dollars ($2,000,000) pool of disproportionate share dollars under IC 12-15-16-6(c) shall not be available to eligible private psychiatric institutions. The office shall annually distribute two million dollars ($2,000,000) to eligible private psychiatric institutions that would have been eligible for payment under IC 12-15-16-6(c).
    (p) The fees collected under this SECTION may be used only as described in this SECTION or to pay the state's share of the cost for Medicaid services provided under the federal Medicaid program (42 U.S.C. 1396 et seq.) as follows:
        (1) Twenty-eight and five-tenths percent (28.5%) may be used by the office for Medicaid expenses.
        (2) Seventy-one and five-tenths percent (71.5%) to hospitals.
    (q) Nothing in this SECTION may be construed to authorize any county, municipality, district, authority to impose a fee, tax, or assessment on a hospital.
    (r) Subject to subsection (g), the office shall adopt rules, including emergency rules under IC 4-22-2-37.1, necessary to implement this SECTION. Rules adopted under this subsection may be retroactive to the effective date of the Medicaid state plan amendments or waivers approved under this SECTION.
    (s) The office may enter into an agreement with a hospital to pay the fee collected under this SECTION in installments.
    (t) If a hospital fails to pay the fee established under this SECTION within ten (10) days of the payment date, the hospital shall pay to the office interest on the fee at the same rate as the rate determined under IC 12-15-21-3(6)(A).
    (u) The office shall report to the state department of health each hospital that fails to pay the fee established under this SECTION within one hundred twenty (120) days of the date the payment is due. The state department shall do the following concerning a hospital described in this subsection:
        (1) Notify the hospital that the hospital's licensed under IC 16-21 will be revoked if the fee is not paid.
        (2) Revoke the hospital's license under IC 16-21 if the hospital fails to pay the fee.
IC 4-21.5-3-8 and IC 4-21.5-4 apply to this subdivision.
    (v) Payments for the programs described in subsection (f) shall be limited to claims for dates of services provided during the fee period and that are timely filed with the office or a contractor of the office. Payments for the programs described in subsection (f) during the fee period and distributions to hospitals in accordance with this SECTION may occur after the expiration of this SECTION.
    (w) This SECTION expires September 1, 2013. However, the office may not assess a hospital a fee described in this SECTION after June 30, 2013.


SOURCE: ; (11)PD4580.252. -->     SECTION 282. [EFFECTIVE JUNE 30, 2010 (RETROACTIVE)] (a) The definitions of "vacation leave", "sick leave", and other types of leave used on July 1, 2010, by the department apply to this SECTION.
    (b) As used in this SECTION, "department" refers to the state personnel department established by IC 4-15-1.8-2.
    (c) As used in this SECTION, "pilot program" refers to the pilot program reestablished under subsection (d).
    (d) The personnel committee of the legislative council for the legislative branch of state government or the Indiana supreme court for the judicial branch of state government, or both, may reestablish the pilot program established by P.L.220-2005, SECTION 8 (before its expiration), and P.L.220-2005, SECTION 10 (before its expiration), including provisions adopted by:
        (1) the deferred compensation committee (established by IC 5-10-1.1-4) to govern the pilot program;
        (2) the department under LSA Document #06-488(E) (before its expiration), filed with the publisher of the Indiana Register on October 16, 2006, to govern the pilot program; or
        (3) the auditor of state to administer the pilot program.
    (e) An individual who:
        (1) was employed by the legislative or judicial branch of state government during the state's 2010 open enrollment period;
        (2) would have been eligible during the state's 2010 open enrollment period to participate in the pilot program under the provisions of the program before the program's expiration; and
        (3) continues to be employed by the legislative or judicial branch of state government;
is entitled to elect to participate in the pilot program and to make a leave conversion not later than June 30, 2011, based on the individual's leave balance on December 31, 2010. A leave conversion elected under this subsection by an eligible individual is in addition to any other leave conversion that the individual is otherwise authorized to make under the pilot program.
    (f) Subject to the Internal Revenue Code and applicable regulations, the personnel committee of the legislative council or the Indiana supreme court, or both, may adopt procedures to implement and administer the pilot program, including provisions established or reestablished under subsections (d) and (e).
    (g) The auditor of state shall provide for the administration of the pilot program.
    (h) This SECTION expires June 30, 2013.

SOURCE: ; (11)PD4580.253. -->     SECTION 283. [EFFECTIVE UPON PASSAGE] (a) The Indiana state board of education shall amend its rules, including 511 IAC 6-7.1-3, as necessary to permit a student to elect to graduate and qualify for a Mitch Daniels early graduation scholarship, as provided in IC 21-12-10, as added by this act.
    (b) The Indiana state board of education may adopt temporary rules in the manner provided for adopting an emergency rule under IC 4-22-2-37.1 to implement this SECTION and IC 21-12-10, as added by this act. A temporary rule adopted under this SECTION expires on the earliest of the following:
        (1) The date specified in the temporary rule.
        (2) The date another temporary rule or a permanent rule repeals or supersedes the previously adopted temporary rule.
        (3) July 1, 2012.
    (c) This SECTION expires July 1, 2012.

SOURCE: ; (11)PD4580.254. -->     SECTION 284. [EFFECTIVE JULY 1, 2011] (a) On July 1, 2011, 31 IAC 1 is void. The publisher

of the Indiana Administrative Code and Indiana Register shall remove this article from the Indiana Administrative Code.
    (b) On July 1, 2011, the following rules are void:
        (1) 31 IAC 2-1.
        (2) 31 IAC 2-2.
        (3) 31 IAC 2-4.
        (4) 31 IAC 2-5.
        (5) 31 IAC 2-6.
        (6) 31 IAC 2-7.
        (7) 31 IAC 2-8.
        (8) 31 IAC 2-10.
        (9) 31 IAC 2-12.
        (10) 31 IAC 2-13.
        (11) 31 IAC 2-15.
        (12) 31 IAC 2-16.
        (13) 31 IAC 2-17.1.
        (14) 31 IAC 2-18.
        (15) 31 IAC 4-3.
        (16) 31 IAC 4-5.
        (17) 31 IAC 4-6.
The publisher of the Indiana Administrative Code and Indiana Register shall remove these rules from the Indiana Administrative Code.
    (c) On July 1, 2011, 31 IAC 4-8-2 and 31 IAC 4-8-3 are void. The publisher of the Indiana Administrative Code and Indiana Register shall remove these sections from the Indiana Administrative Code.
    (d) This SECTION expires July 2, 2011.

SOURCE: ; (11)PD4580.255. -->     SECTION 285. [EFFECTIVE JULY 1, 2011] (a) The legislative services agency shall prepare legislation for introduction in the 2012 regular session of the general assembly to organize and correct statutes affected by this act, including the updating of references and cross-references to:
        (1) the state personnel department under IC 4-15-1.8 (before its repeal by this act); and
        (2) the 1941 State Personnel Act (commonly known as the state merit system) under IC 4-15-2 (before its repeal by this act).
    (b) This SECTION expires June 30, 2013.

SOURCE: ; (11)PD4580.256. -->     SECTION 286. [EFFECTIVE UPON PASSAGE] (a) The commission on state tax and financing policy established under IC 2-5-3 shall, during the 2011 legislative interim, study issues related to transit funding and whether and to what extent transit funding should be a state or local responsibility.
    (b) Before November 1, 2011, the commission on state tax and financing policy shall report its findings and any recommendations concerning the study topics described in subsection (a) in a final report to the legislative council in an electronic format under IC 5-14-6.
    (c) This SECTION expires January 1, 2012.

SOURCE: ; (11)PD4580.257. -->     SECTION 287. [EFFECTIVE UPON PASSAGE] (a) The Indiana criminal justice institute shall study the following topics and shall report the division's findings and recommendations to the budget committee before December 1, 2011:
        (1) The use of diversion and deferral programs in Indiana.
        (2) The use of plea bargaining in Indiana.
    (b) This SECTION expires July 1, 2012.

SOURCE: ; (11)PD4580.258. -->     SECTION 288. [EFFECTIVE UPON PASSAGE] (a) The budget agency shall study the following topics and shall report its findings and recommendations to the budget committee before December 1, 2011:
        (1) The funding of Indiana's law enforcement training academies.
        (2) The use and effectiveness of Indiana's law enforcement training academies.
    (b) This SECTION expires July 1, 2012.

SOURCE: ; (11)PD4580.259. -->     SECTION 289. [EFFECTIVE JULY 1, 2011] (a) The commission for higher education, established under IC 21-18-2, shall study the Ivy Tech Community College's plan, as of July 1, 2011, to accommodate growth in enrollment and its campuses.
    (b) Before December 1, 2011, the commission for higher education shall submit a written report of its findings and any recommendations concerning the study topics described in subsection (a) to the state budget committee.
    (c) Before developing higher education biennial request instructions for the biennium beginning July 1, 2013, and ending June 30, 2015, the commission for higher education shall collaborate with the public state educational institutions on a study of the Indiana's performance funding mechanism. The study shall involve a review of performance funding models in other states, detailed consideration of the funding measures and methodology, and recommendations for use of different measures and weighting of such measures to better recognize the unique missions of the various types of campuses (e.g., research; four (4) year comprehensive; two (2) year; and community colleges). Such deliberations shall result in recommended revisions to the mechanism being used in the biennium beginning July 1, 2011, and ending June 30, 2013. In order to incorporate these recommendations into the budget instructions and other preparations associated with the development of the biennial budget for the biennium beginning July 1, 2013, and ending June 30, 2015, this study shall be completed before December 2, 2011, and submitted to the state budget committee for its review and consideration.
    (d) This SECTION expires July 1, 2013.

SOURCE: ; (11)PD4580.260. -->     SECTION 290. [EFFECTIVE JULY 1, 2011] The budget agency shall separately calculate the annual, projected growth in appropriated dollars for the:
        (1) twenty-first century scholars program (IC 21-12-6);
        (2) tuition and fee exemption for children of veterans program (IC 21-14-4);
        (3) tuition and fee exemption for children and spouses of National Guard members program (IC 21-14-7); and
        (4) tuition and fee exemption for Purple Heart recipients program (IC 21-14-10);
for each state fiscal year beginning July 1, 2013, through June 30, 2031, using the appropriated amount for each program for the state fiscal year beginning July 1, 2012, and report the annual, projected growth in appropriated dollars for each program to the budget committee before October 1, 2011.

SOURCE: ; (11)PD4580.261. -->     SECTION 291. [EFFECTIVE JULY 1, 2011] (a) As used in this SECTION, "office of the secretary" refers to the office of the secretary of family and social services established by IC 12-8-1-1.
    (b) As used in this SECTION, "PPACA" refers to the federal Patient Protection and Affordable Care Act (P.L. 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (P.L. 111-152), and regulations or guidance issued under those acts, as in effect July 1, 2011.
    (c) The office of the secretary may apply for and implement a Medicaid waiver during the 2011 or the 2012 interim of the general assembly if the following conditions are met:
        (1) The waiver concerns the implementation of PPACA.

         (2) The office of the secretary reports to the budget committee before filing a waiver application described in subdivision (1).
    (d) This SECTION expires December 31, 2012.

SOURCE: ; (11)PD4580.262. -->     SECTION 292. [EFFECTIVE JULY 1, 2011] (a) As used in this SECTION, "office of the secretary" refers to the office of the secretary of family and social services established by IC 12-8-1-1.
    (b) The office of the secretary may, during the 2011 or the 2012 interim of the general assembly, apply to the federal Department of Health and Human Services for, and implement, block grant funding for the administration of the Medicaid program if the following conditions are met:
        (1) The Medicaid block grant funding is adopted by federal law or regulation.

        (2) The office of the secretary reports to the budget committee before implementing the block grant described in this SECTION.
    (c) This SECTION expires December 31, 2012.

SOURCE: ; (11)PD4580.263. -->     SECTION 293. [EFFECTIVE JULY 1, 2011] (a) On July 1, 2011, 405 IAC 5-31-8 (reservation of nursing facility beds) is void. The publisher of the Indiana Administrative Code and Indiana Register shall remove the provisions described in this SECTION from the Indiana Administrative Code.
    (b) This SECTION expires June 30, 2013.

SOURCE: ; (11)PD4580.264. -->     SECTION 294. [EFFECTIVE JULY 1, 2011] (a) The state department of health shall do the following:
        (1) Develop procedures and protocols for the implementation of IC 16-41-17-2(c), as amended by this act.
        (2) Report, not later than October 31, 2011, to the legislative council created by IC 2-5-1.1-1 the following information concerning pulse oximetry screening of newborns required by IC 16-41-17-2(c), as amended by this act:
            (A) The costs of implementing IC 16-41-17-2(c), as amended by this act.
            (B) The identification of any funding sources available to the state department for the screening.
            (C) The procedures and protocols developed under subdivision (1).
The report under subdivision (2) must be in an electronic format under IC 5-14-6.
    (b) This SECTION expires December 31, 2011.

SOURCE: ; (11)PD4580.265. -->     SECTION 295. P.L.182-2009(ss), SECTION 498, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JUNE 1, 2011]: (a) Notwithstanding any other law or agreement, Brown County School Corporation is not required to make principal or interest payments during the state fiscal years beginning:
        (1) July 1, 2009; and
        (2) July 1, 2010;
        (3) July 1, 2011; and
        (4) July 1, 2012;

on any loan received by the school corporation from the counter-cyclical revenue and economic stabilization fund (rainy day fund).
    (b) The repayment term of the loan shall be extended as necessary to take into account the waiver described in subsection (a).
    (c) This SECTION expires January 1, 2012. 2014.
SOURCE: ; (11)PD4580.266. -->     SECTION 296. [EFFECTIVE JANUARY 1, 2010 (RETROACTIVE)] (a) IC 6-3-1-3.5, IC 6-3-1-11, IC 6-3.1-21-6, and IC 6-5.5-1-2, all as amended by this act, apply to taxable years beginning after December 31, 2009.
    (b) This SECTION expires January 1, 2012.

SOURCE: ; (11)PD4580.267. -->     SECTION 297. [EFFECTIVE JULY 1, 2011] (a) As used in this SECTION, "fund" refers to the Indiana state teachers' retirement fund established by IC 5-10.4-2-1.
    (b) Not later than October 1, 2011, the fund shall pay the amount determined under subsection (c) to a member of the fund (or to a survivor or beneficiary of a member) who retired or was disabled before January 1, 2011, and who is entitled to receive a monthly benefit on July 1, 2011. The amount is not an increase in the pension portion of the monthly benefit.
    (c) The amount paid under this SECTION to a member of the fund (or to a survivor or beneficiary of a member) who meets the requirements of subsection (b) is determined as follows:
    If a Member's Creditable            The Amount Is:
                Service Is:
    At least 5 years, but less than 10 years            $150
    (only in the case of a member receiving
    disability retirement benefits)
    At least 10 years, but less than 20 years            $275
    At least 20 years, but less than 30 years            $375
    At least 30 years                    $450
    (d) The creditable service used to determine the amount paid to a member (or a survivor or beneficiary of a member) under this SECTION is the creditable service that was used to compute the member's retirement benefit under IC 5-10.2-4-4, except that partial years of creditable service may not be used to determine the amount paid under this SECTION.
    (e) This SECTION expires January 1, 2012.

SOURCE: ; (11)PD4580.268. -->     SECTION 298. [EFFECTIVE JULY 1, 2011] (a) As used in this SECTION, "fund" refers to the public employees' retirement fund established by IC 5-10.3-2-1.
    (b) Not later than October 1, 2011, the fund shall pay the amount determined under subsection (c) to a member of the fund (or to a survivor or beneficiary of a member) who retired or was disabled before January 1, 2011, and who is entitled to receive a monthly benefit on July 1, 2011. The amount is not an increase in the pension portion of the monthly benefit.
    (c) The amount paid under this SECTION to a member of the fund (or to a survivor or beneficiary of a member) who meets the requirements of subsection (b) is determined as follows:
    If a Member's Creditable             The Amount Is:
                Service Is:
    At least 5 years, but less than 10 years        $150
    (only in the case of a member receiving
    disability retirement benefits)
    At least 10 years, but less than 20 years        $275
    At least 20 years, but less than 30 years        $375
    At least 30 years                $450
    (d) The creditable service used to determine the amount paid to a member (or a survivor or beneficiary of a member) under this SECTION is the creditable service that was used to compute the member's retirement benefit under IC 5-10.2-4-4, except that partial years of creditable service may not be used to determine the amount paid under this SECTION.
    (e) This SECTION expires January 1, 2012.

SOURCE: ; (11)PD4580.269. -->     SECTION 299. [EFFECTIVE JULY 1, 2011] (a) As used in this SECTION, "trustee" has the meaning set forth in IC 10-12-1-10.
    (b) As used in this SECTION, "trust fund" has the meaning set forth in IC 10-12-1-11.
    (c) Not later than October 1, 2011, the trustee shall pay from the trust fund to each employee beneficiary of the state police 1987 benefit system covered by IC 10-12-4 who:
        (1) retired or was disabled after June 30, 1987, and before July 2, 2010; and
        (2) is entitled to receive a monthly benefit as of September 1, 2011;
an amount equal to one percent (1%) of the maximum basic annual pension amount payable to a retired state police employee in the grade of trooper who has completed twenty-five (25) years of service as of July 1, 2011, as calculated under IC 10-12-4-7.
    (d) The amount paid under this SECTION is not an increase in the monthly pension amount of an employee beneficiary.
    (e) This SECTION expires January 1, 2012.

SOURCE: ; (11)PD4580.270. -->     SECTION 300. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, "participant" has the meaning set forth in IC 5-10-5.5-1.
    (b) As used in this SECTION, "plan" refers to the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan established by IC 5-10-5.5-2.
    (c) Not later than October 1, 2011, the board of trustees of the public employees' retirement fund shall pay the amount determined under subsection (d) to a plan participant (or to a survivor or beneficiary of a plan participant) who retired or was disabled on or before January 1, 2011, and who is entitled to receive a monthly benefit on July 1, 2011. The amount is not an increase in the annual retirement allowance.
    (d) The amount paid under this SECTION to a plan participant (or to a survivor or beneficiary of a plan participant) who meets the requirements of subsection (c) is determined as follows:
    If a Plan Participant's Creditable    The Amount Is:
            Service Is:
    Less than ten (10) years     $125
            (only in the case of a plan participant
            receiving disability retirement benefits)
    At least ten (10) years,
            but less than twenty (20) years     $235
    At least twenty (20) years,
            but less than thirty (30) years     $325
    At least thirty (30) years     $400
    (e) The creditable service used to determine the amount paid to a plan participant (or a survivor or beneficiary of a plan participant) under this SECTION is the creditable service that was used to compute the plan participant's retirement allowance under IC 5-10-5.5-10 and IC 5-10-5.5-12, except that partial years of creditable service may not be used to determine the amount paid under this SECTION.
    (f) This SECTION expires January 1, 2012.

SOURCE: ; (11)PD4580.271. -->     SECTION 301. [EFFECTIVE JULY 1, 2011] (a) This SECTION applies notwithstanding the repeal of IC 20-40-16 by this act.
    (b) If a transfer is made under IC 20-40-16 during the 2010-2011 school year, the school corporation shall file a report with the department of education before October 1, 2011. The report must include the following:
        (1) The purpose of the transfer.
        (2) The funds involved in the transfer.
        (3) The amount transferred between the funds.
        (4) The impact of the transfer to the programs that are supported by the fund from which the

transfer was made.
    (c) This SECTION expires December 31, 2011.

SOURCE: ; (11)PD4580.272. -->     SECTION 302. [EFFECTIVE APRIL 29, 2011 (RETROACTIVE)] The general assembly recognizes that the general assembly has enacted more than one act amending IC 4-22-2-37.1, including SEA 295-2011, HEA 1121-2011, HEA 1486-2011, and HEA 1046-2011. The general assembly has incorporated the changes made in those acts into the version of IC 4-22-2-37.1 amended by this act. It is the intent of the general assembly that to the extent there is a conflict between the version of IC 4-22-2-37.1 enacted in this act and an amendment made to IC 4-22-2-37.1 by any other act, the version of IC 4-22-2-37.1 amended by this act be given effect. The publisher is directed to publish only the version of IC 4-22-2-37.1 enacted in this act in the Indiana Code.
SOURCE: ; (11)PD4580.273. -->     SECTION 303. [EFFECTIVE UPON PASSAGE] Each and every provision of HEA 1003-2011 is presumed to be and shall be severable from the remainder to the fullest extent and pursuant to IC 1-1-1-8. If any phrase, clause, sentence, or provision of IC 6-3.1-30.5 or IC 20-51, as added and amended, is held invalid for any reason, the invalidity does not affect the other provisions which are to be given effect without the invalid provision or application. The general assembly intends each provision to be passed into law individually and as a whole, without any provisions later found to be invalid or otherwise counter to constitutional or other legal requirements.
SOURCE: ; (11)PD4580.274. -->     SECTION 304. An emergency is declared for this act.


HEA 1001 _ CC 1

Figure

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